News Release

Contact: Kevin Herglotz, (202) 720-4623
Tim McNeilly, (202) 690-0498

USDA ANNOUNCES $3.6 MILLION IN RURAL DEVELOPMENT GRANTS AND LOANS FOR RURAL KANSAS

Agri-Business and Rental Housing Development Proposals Selected For Funding

     HUTCHINSON, Kansas, Sept. 8, 2001--The U.S. Department of Agriculture today announced the selection of 10 rural Kansas business and housing development proposals to receive a total of $3.6 million in USDA Rural Development grant and loan assistance. The funds will help to construct and rehabilitate 96 rural rental housing units for senior citizens and low income families and provide funding to assist five rural business ventures.

     "Providing financing to build affordable housing and open new opportunities is important for our rural communities," said Agriculture Secretary Ann M. Veneman during a visit to the Kansas State Fair.

     In announcing the funds, Veneman cited a $450,000 grant proposal from the Pioneer Electric Cooperative, Inc., as an example of how USDA funds bring new resources and assistance to Kansas' agri-business industry. The cooperative will utilize the funds to establish a large dairy operation in Grant County.

     USDA funds will be provided through several USDA Rural Development programs; the Rural Business Opportunity Grant (RBOG) program, the Rural Economic Development Loan and Grant (REDLG) program, the Multi-Family Housing program, and the Rural Cooperative Development Grant program. The following is a list of the individual recipients selected for loan and grant assistance:

Pioneer Electric Cooperative, Inc. - $450,000 loan (REDLG) to establish a large dairy operation in Grant County.

Kansas State University - $220,000 grant (RCDG) to improve ongoing cooperative development and value-added technical assistance to agricultural cooperatives.

Prairie Land Electric Cooperative, Inc. (Norton, Kansas) - $200,000 grant (REDLG) to establish a revolving loan fund.

Kansas Technology Enterprise Corporation (Topeka, Kansas) - $50,000 grant (RBOG) to provide technical assistance to determine the market potential of inventions.

Smoky Hill Electric Cooperative Association, Inc. - $450,000 loan (REDLG) to renovate and re-open an historic hotel in Wilson, Kansas.

Goessel Housing Authority (Wichita County) - $40,000 loan to rehabilitate 12-unit senior citizen rural rental housing complex in Goessel, Kansas.

Greensburg Rural Housing LP (Kiowa County) - $244,600 loan to rehabilitate 12-unit general occupancy rural rental housing complex in Greensburg, Kansas.

Kinsley Rental Housing (Edwards County) - $85,000 loan to rehabilitate 12-unit general occupancy rural rental housing complex in Kinsley, Kansas.

Atchinson Senior Residences, LP (Atchinson County) - $875,000 loan to construct 36-unit senior citizen rural rental housing complex in Atchinson, Kansas.

Pittsburg Seniors LP - $1,000,000 loan to construct 24-unit senior citizen rural rental housing complex in Pittsburg, Kansas.

     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 can be obtained by contacting any USDA Service Center or by visiting USDA's web site at http://www.rurdev.usda.gov.

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