WASHINGTON, June 9, 2009 - Agriculture Secretary Tom Vilsack today announced that 17 utilities in 12 states have been selected to receive $9.2 million through USDA Rural Development's Rural Economic Development Loan and Grant program.

"These loans and grants help rural communities keep existing businesses, attract new ones and stimulate local economies," Vilsack said. "USDA is partnering with local utilities to provide needed capital for economic development."

The projects are expected to create or save more than 799 jobs in Georgia, Iowa, Kansas, Kentucky, Minnesota, Missouri, Mississippi, North Dakota, Oklahoma, South Dakota, Tennessee and Wisconsin.

In Tennessee $1,930,000 will be invested in Claiborne, Hardin and Obion Counties.

Powell Valley Electric Cooperative will partner with Rural Development to provide a $740,000 federal, zero-percent interest loan needed by the Claiborne County Industrial Board to renovate the former Claiborne County School building. The IDB is investing an additional $1,760,000 in the project. The refurbished building will serve as a satellite campus of Walter State Community College, which currently employees 11 people at a smaller facility in Claiborne County. The new facility will employ up to 40 additional faculty and staff and will provide more affordable job skills training, workforce development and post-secondary educational opportunities.

In Hardin County, Tennessee Valley Electric Cooperative will partner with Rural Development to provide a $450,000 federal, zero-percent interest loan to American Creative Solutions to purchase equipment for the manufacture of food service fixtures. The new company will be housed in an existing industrial building and expects to create 24 jobs.

In Obion County, Gibson Electric membership Corp. will partner with Rural Development to provide a $740,000 federal, zero-percent interest loan needed by Williams Sausage Company to expand production to meet growing demand for its products. The additional capacity is expected to create 100 new jobs and secure the 210 positions Williams currently employs. Williams is investing more than $10 million in the expansion.

The grants announced today are part of USDA Rural Development’s annual budget and are not funded through the American Recovery and Reinvestment Act of 2009. Funding of individual recipients is contingent upon their meeting the conditions of the loan or grant agreement. Below is the recipient list.

USDA Rural Development’s mission is to increase economic opportunity and improve the quality of life for rural residents. Rural Development fosters growth in homeownership, finances business development and supports the creation of critical community and technology infrastructure. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA Rural Development’s web site at http://www.rurdev.usda.gov.

State	Recipient	Loan Amount	Grant Amount
Georgia	Upson Electric Membership Corp.	$740,000	0
Iowa	Corn Belt Power Cooperative	0	$300,000
Iowa	City of Pocohantas	0	$300,000
Kansas	Butler Rural Electric Cooperative	$354,400	0
Kentucky	South Kentucky Rural Electric Cooperative Corp.	$740,000	$300,000
Minnesota	Consolidated Telephone Company	$740,000	0
Minnesota	Consolidated Telephone Company	$560,000	0
Missouri	White River Valley Electric Cooperative, Inc.	$300,000	0
Mississippi	Central Electric Power Association	$740,000	0
Mississippi	Singing River Electric Power Association	$740,000	$300,000
North Dakota	Polar Communications Mutual Aid Corp.	0	$300,000
Oklahoma	Caddo Electric Cooperative, Inc.	400,000	0
South Dakota	Union County Electric Cooperative, Inc.	0	$300,000
Tennessee	Tennessee Valley Electric Cooperative	450,000	0
Tennessee	Gibson Membership Electric Corp.	$740,000	0
Tennessee	Powell Valley Electric Cooperative	$740,000	0
Wisconsin	Citizens Telephone Cooperative, Inc.	0	$300,000

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