News Release

Contact: Kevin Herglotz, (202) 720-4623
kevin.herglotz@usda.gov
Tim McNeilly, (202) 690-0498
tmcneill@rdmail.rural.usda.gov

USDA APPROVES BUSINESS LOAN GUARANTEE TO SPUR LOCAL TOURIST ECONOMY IN SMALL IOWA COMMUNITY

West Bend Residents Join Efforts To Build Local Motel

     DES MOINES, IOWA, August 17, 2001--Agriculture Secretary Ann M. Veneman today announced the approval of a conditional commitment for an $800,000 loan guarantee to Laurens State Bank, who is seeking to assist Park Hill Properties, Ltd. in financing the construction of a 36-unit motel in West Bend, Iowa.

     “West Bend residents are making a strong statement about their desire to bring added economic development to their community,” said Veneman. “It reflects their commitment toward meeting the needs of visitors to their community, and providing new revenue to surrounding businesses.”

     Park Hill Properties, Ltd., is a limited partnership of the West Bend Economic Development Corporation. The partnership is constructing a 36-unit hotel targeting business, family, and leisure travelers. West Bend, a community of 900 residents, attracts 80,000 visitors every year, who come to marvel at the creation started in 1912, “The Grotto of Redemption”.

    West Bend residents have come together to invest in an equity stock drive for the construction of the hotel. Park Hill began offering shares at $1,000 to raise the equity needed to secure bank financing. The stock offering has raised $297,000 to-date, providing the partnership with a strong equity position.

    The Business and Industry (B&I) Guaranteed Loan Program helps create jobs and stimulates rural economies by providing financial backing for rural businesses. This program provides guarantees up to 90 percent of a loan made by a commercial lender. Loan proceeds may be used for working capital, machinery and equipment, buildings and real estate, and certain types of debt refinancing. The program is administered by Rural Business-Cooperative Service (RBS), an agency within USDA Rural Development.

    USDA Rural Development serves as the lead federal entity for rural development needs, and administers program assistance through three agencies: Rural Housing Service, Rural Business-Cooperative Service, and Rural Utilities Service. Further information on USDA Rural Development programs can be obtained by visiting USDA's web site at http://www.rurdev.usda.gov.

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