News Release

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

AGRICULTURE SECRETARY ANNOUNCES SELECTION FOR RURAL BUSINESS DEVELOPMENT GRANTS IN IOWA

     DES MOINES, IOWA, August 17, 2001--Agriculture Secretary Ann M. Veneman today announced the selection of five business and community development proposals to receive $346,819 in grant funds to assist in fostering economic development in rural areas of Iowa.

      “In the heartland of America, you understand the importance of opening new markets for our agriculture commodities,” said Secretary Veneman. “We must continue to work together to bring greater economic prosperity to all Iowans who call rural America their home.”

     Veneman noted that approximately 6 businesses will benefit from the grant funds. Grants will be provided through three USDA Rural Development programs; the Rural Business Enterprise Grant (RBEG) program, the Rural Business Opportunity Grant (RBOG) program and the Rural Economic Development Loan and Grant (REDLG) program.

Wallace Foundation for Rural Research and Development has been chosen to receive an $80,000 RBEG to conduct a feasibility study for organic dairy and related businesses that will add value to organic milk, Lewis, Iowa.

Iowa Farmers Union Educational Foundation has been chosen to receive a $50,000 RBOG to conduct a feasibility study to determine institutional markets for fruits, vegetables, and high quality, low-priced meat products and the viability of a processing facility.

Siouxland Economic Development Corporation has been chosen to receive a $53,250 RBEG to re-capitalize an existing revolving loan fund, Sioux City, Iowa.

Lynnville Housing Development Corporation has been chosen to receive a $25,000 RBEG to purchase five acres of land for an industrial site to accommodate six to eight expanding businesses, Lynville, Iowa.

Northwest Telephone Cooperative Association has been chosen to receive a $138,569 REDLG to construct an assisted living facility in West Bend, Iowa.

     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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