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USDA AWARDS $4.5 MILLION IN GRANTS TO BOOST BUSINESS IN DEPRESSED RURAL AREAS
WASHINGTON, June 9, 1999 -- Agriculture Secretary Dan Glickman announced $4.5 million in grants to spur the development of new and emerging businesses in economically depressed rural areas of the nation. The grants will finance 22 projects in 17 states under the U.S. Department of Agriculture's Rural Business Enterprise Grants (RBEG) program.
"These grants will help create jobs and stronger businesses in rural communities plagued by high unemployment and poverty levels," Glickman said. "Although the nation's economy is the envy of the world, many rural areas are still struggling and in desperate need of the type of economic assistance we are delivering today."
The grants will be used for a wide array of projects, ranging from infrastructure improvements -- such as construction of new community water systems and parking lots needed to attract new businesses -- to training programs which will help owners of small rural businesses learn to better market their products. Of the nearly $4.5 million awarded today, $2.7 million will help businesses located in the nation's Rural Empowerment Zones and Enterprise Communities.
"These are areas of chronic rural poverty targeted by USDA for intense rural development assistance under a special Presidential initiative," said Jill Long Thompson, USDA under secretary for rural development. "Through efforts such as the RBEG program, we are seeking to build the strong business foundation needed to break the cycle of poverty that these communities are locked in."
Each USDA grant dollar leverages an additional $2.40 in other private and public funds for rural development, Glickman noted. During fiscal year 1999, the RBEG program will award nearly $37.2 million in grants, which will leverage an additional $89.3 million in development funds.
Grants can be used for purposes such as acquisition of land or construction of buildings, for equipment purchases, the construction of access roads and parking lots, or to extend needed utilities to a new businesses, among other purposes.
The RBEG grants were awarded to local governments, nonprofit development corporations or Indian tribal governments in the following states: Arizona, Georgia, Kentucky, Louisiana, Maine, Missouri, Mississippi, North Dakota, New Hampshire, New Mexico, Oklahoma, South Dakota, Utah, Virginia, Washington, Wisconsin, West Virginia.
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