Release No.0160.99
Media Contact: Andrew Kauders (202) 720-4623
andrew.kauders@usda.gov
Public Contact: Dan Campbell, (202) 720-6483
Dan.Campbell@usda.gov
WASHINGTON, April 13, 1999 -- Agriculture Secretary Dan Glickman today announced that USDA will invest more than $8.3 million to assist rural communities and businesses in 11 states with projects to create or save more than 700 rural jobs.
"This USDA funding will help stimulate rural America's economy," Glickman said. "Our assistance to these struggling rural areas will help people create new businesses, develop their infrastructure, and improve their medical facilities, while creating new jobs."
USDA is providing the funding through its Rural Economic Development Loan and Grant program, administered by USDA's Rural Development mission. 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 and communities in their service area. USDA will provide about $4.5 million of the $8.3 million in loans to these rural businesses and communities while issuing $3.8 million as grants to rural utility cooperatives to make zero-interest loans to rural businesses and for community development purposes. When repaid into a revolving loan fund, the funds will be used to finance other rural community and business needs.
Projects being funded include a $450,000 loan to help build a new manufactured-housing facility to bring 113 new jobs to a North Carolina Enterprise Community. A $300,000 loan to an electric association in Colorado will help finance a water system that will deliver 2 million gallons of water per day.
The $8.3 million in USDA funds will be used to leverage an additional $35.4 million from other private and public sources. For the 1999 fiscal year, USDA expects to provide a total of $26 million in loans and grants under this program.
Editor's Note: A list of the projects being funded this quarter follows.
Click for a Detailed list of Loans.
Click for a Detailed list of Grants.
Rural Economic Development Loan Program
Fund recipients, by state
Colo. -- La Plata Electric Association Inc. - $300,000
Iowa -- Central Iowa Power Cooperative - $250,000
Kan. -- Flint Hills Rural Electric Cooperative Association Inc. - $420,000
Kan. -- Rural Telephone Service Company Inc. - $450,000
Ky. -- Green River Electric Cooperative - $450,000
Minn. -- Arvig Telephone Company - $450,000
N.C. -- Halifax Electric Membership Corporation - $450,000
N.D. -- James Valley Electric Cooperative Inc. - $100,000
N.D. -- KEM Electric Cooperative Inc. - $400,000
Tenn. -- Caney Fork Electric Cooperative Inc. - $450,000
Tenn. -- Powell Valley Electric Cooperative - $330,000
Tenn. -- Tennessee Valley Electric Cooperative - $450,000
Rural Economic Development Grant Program
Fund recipients, by state
(All of the grant funds below will be used to establish revolving loan fund progams)
Iowa -- Guthrie County Rural Electric Cooperative Association - $330,000
Iowa -- Maquoketa Valley Electric Cooperative - $108,000
Kan. -- Prairie Land Electric Cooperative Inc. - $152,000
Minn. -- East Otter Tail Telephone Company - $330,000
Mo. -- Intercounty Electric Cooperative Association - $330,000
N.C. -- Energy United Electric Membership Corporation - $330,000
N.C. -- Roanoke Electric Membership Corporation - $330,000
N.C. -- South River Electric Membership Corporation - $330,000
N.D. -- North Central Electric Cooperative Inc. - $330,000
S.D. -- Cherry-Todd Electric Cooperative - $330,000
Tenn. -- Caney Fork Electric Cooperative Inc. - $330,000
Tenn. -- Sequachee Valley Electric Cooperative - $330,000
Wis. -- Midway Telephone Company - $219.000
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