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NEWS RELEASE 1303
SW First American Place, Suite 100, Topeka,
KS 66604-4040 |
FOR IMMEDIATE RELEASE – October 29, 2004
Contact - Harold Alford (785) 271-2701
NEW
FUNDING SOURCE AVAILABLE FOR
RURAL ECONOMIC DEVELOPMENT
WASHINGTON, Oct. 29, 2004 —The U.S. Department of Agriculture today announced the creation of a new rural development program that will provide a long term funding mechanism for loans and grants to rural America.
“President Bush is committed to increasing economic opportunity and improving
the quality of life in rural communities,” Agriculture Secretary Ann M. Veneman
said. “This new source of capital for rural economic development will bring
new jobs to rural America. This assistance will be available to some of the
most isolated and rural areas of the country.”
Rural Development’s Rural Economic Development Loan and Grant Program (REDLG)
manages these projects. New regulations published today will enable USDA to
guarantee up to $3 billion bonds or notes of not-for-profit lenders for up
to 20 years, if the proceeds are used for electric and telecommunications
loans. The lender, whose notes the Government will guarantee, will be required
to pay an annual fee of 30 basis points over the term of the unpaid debt.
Most of the 30 basis points will be deposited into the REDLG program.
The program was authorized by Section 6101 of the 2002 Farm Bill. Like other Rural Development programs, local leaders will make the decisions on what projects are needed in their communities. The REDLG program provides zero-interest loans and grants for all types of community and economic development projects. Past projects have included fire trucks, libraries, health facilities and industrial parks.
From the beginning of this program
in 1989, USDA Rural Development has invested approximately $250 million in
over 1,000 projects across the country, leveraging an additional $1.4 billion
in private sector funds and creating an estimated 28,000 jobs. During the
Bush Administration, approximately $90 million has been invested creating
or saving almost 15,000 jobs.
USDA Rural Development's mission is to deliver programs in a way that will
support increasing economic opportunity and improve the quality of life of
rural residents. Rural Development provides equity and technical assistance
to finance and foster growth in homeownership, business development and critical
community and technology infrastructure.
For additional information regarding USDA Rural Development programs, individuals may call 785-271-2702 or log onto the state’s Agency’s website at: www.rurdev.usda.gov/ks
USDA Rural Development – Committed to the future of rural communities.
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