USDA INVESTING $17 MILLION TO BOOST RURAL BUSINESSES
WASHINGTON, June 22 -- Agriculture Secretary Dan Glickman today announced that more than $17.2 million in loans and grants are being awarded by USDA to support the development or expansion of rural businesses in 19 states. The projects are expected to create or preserve 3,758 rural jobs.
"Even though the nation's unemployment levels are at record lows, in many parts of rural America there is still a critical need for good jobs," Glickman said. "Most of the projects we are funding today were selected in large part to support the Clinton Administration's commitment to bring more jobs to rural communities that need a boost."
The $17.2 million in USDA funds will be used to leverage an additional $83.8 million from other private and public sources.
Glickman cited a $600,000 loan being made to a North Carolina plastics manufacturer as a good example of the way these business loans will stimulate small business and rural communities. "This new company will create 17 new jobs," Glickman said. "A $750,000 loan to a Wyoming sport aircraft manufacturer to buy new machinery will create 50 new jobs and help preserve 72 existing jobs. A $400,000 loan for a new industrial building in rural Tennessee will create an additional 124 jobs and help protect 70 current jobs."
"The balanced budget is helping to keep interest rates at near record lows, making this an ideal time for USDA to promote new rural businesses," said Jill Long Thompson, under secretary for USDA Rural Development. "Backing private enterprises that create good-paying jobs is the best way to bring lasting economic benefits to rural areas."
The funding is being provided through the Rural Economic Development Zero Interest Loan and Grant program, administered by USDA Rural Development. Under this program, USDA provides funds to Rural Utilities Service borrowers -- typically rural telephone or electric cooperatives -- which in turn provide zero-interest loans to rural businesses in their service area.
About $13.5 million of the $17 million will be provided as zero-interest loans, while $3.5 million will be issued as grants to the rural utility cooperatives. Co-ops use the grant money to make zero-interest loans to rural businesses. When these loans are repaid to the co-op, the money goes into a revolving loan fund used to finance other rural businesses.
For the 1998 fiscal year, USDA expects to provide a total of $36.3 million in loans and grants under this program.
Editor's Note: A list of the projects being funded this quarter follows. For a detailed list, see the Projects Funded page.
Rural Economic Development Loan Program AR North Arkansas Electric Cooperative, Inc., Salem -- $400,000 IA Nishnabotna Valley Rural Electric Cooperative, Harlan -- $350,000 Maquoketa Valley Electric Cooperative, Anamosa -- $250,000 Pella Cooperative Electric Association, Pella -- $500,000 KS The Victory Electric Cooperative Association, Inc., Dodge City - $271,000 KY Henderson Union Electric Cooperative Corporation, Henderson -- $400,000 Henderson Union Electric Cooperative Corporation, Henderson -- $400,000 South Kentucky Rural Electric Cooperative Corporation, Somerset -- $100,000 MN East Ottertail Telephone Company, Perham -- $330,000 Consolidated Telephone Company, Brainerd -- $400,000 Crow Wing Cooperative Power & Light, Brainerd -- $400,000 Cooperative Light & Power Association of Lake County, Two Harbors -- $400,000 Garden Valley Telephone Company, Erskine - $605,000 MT Triangle Telephone Cooperative Association Inc., Havre -- $300,000 NE Benkelman Telephone Company, Inc., Benkelman - $270,000 NC Crescent Electric Membership Corporation, Statesville -- $600,000 South River Electric Membership Corporation, Dunn -- $254,000 PA Claverack Rural Electric Cooperative Inc., Wysox - $750,000 SC Blue Ridge Electric Cooperative Inc., Pickens -- $400,000 TN Meriwether Lewis Electric Cooperative Inc., Centerville -- $400,000 Powell Valley Electric Cooperative Inc., New Tazewell -- $400,000 Tennessee Valley Electric Cooperative Inc. Savannah -- $400,000 Tennessee Valley Electric Cooperative, Inc., Savannah -- $400,000 Tri-County Electric Membership Corporation, Lafayette -- $750,000 VA Northern Neck Electric Cooperative Inc., Warsaw -- $400,000 Southside Electric Cooperative Inc., Crewe -- $400,000 VT Washington Electric Cooperative, Inc. East Montpelier -- $600,000 WI Baldwin Telecom Inc., Baldwin -- $400,000 Jump River Electric Cooperative, Ladysmith -- $166,000 WY Lower Valley Power and Light, Afton -- $750,000 Powder River Energy Corporation, Sheridan -- $750,000 Rural Economic Development Grant Program All of the grant funds below will be used to establish revolving
loan fund programs. IA Western Iowa Power Cooperative, Denison -- $200,000 OK Kiwash Electric Cooperative Inc., Cordell - $208,500 MN East Ottertail Telephone Company, Perham -- $66,000 Lyon-Lincoln Electric Cooperative Inc., Tyler -- $330,000 Mille Lacs Electric Cooperative, Aitkin -- $200,000 NE Benkelman Telephone Company Inc., Benkelman -- $330,000 NC Wake Electric Membership Corporation, Wake Forest -- $330,000 South River Electric Membership Corporation, Dunn -- $330,000 OH Consolidated Electric Cooperative, Inc., Mt. Gilead -- $330,000 SD Dakota Energy Cooperative Inc., Huron -- $100,000 Kingsbury Electric Cooperative, Inc., DeSmet - $100,000 Sanborn Telephone Cooperative, Woonsocket -- $200,000 Lincoln-Union Electric Co., Alcester -- $100,000 TN Caney Fork Electric Cooperative Inc., McMinnville -- $330,000 WA Okanogan County Electric Cooperative Inc., Okanogan -- $204,000 WI Dairyland Power Cooperative, LaCrosse -- $330,000
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