| U S D A / R u r a l D e v e l o p m e n t |
| WASHINGTON, D.C. 20250-0705 |
News Release |
Alisa Harrison (202) 720-4623
Tim McNeilly (202) 690-0498
USDA ANNOUNCES $260 MILLION FOR RURAL ENERGY AND BUSINESS EFFORTS IN 24 STATES
$22 Million To Benefit Expansion of Electric Distribution and Business Ventures in Rural Minnesota
MINNEAPOLIS, Minn., December 17, 2001--Agriculture Secretary Ann M. Veneman today announced over $260 million in loan and grant funds for 24 states to boost bioenergy production, expand rural business ventures and improve economic and community development.
To illustrate the administration’s support for ethanol and biofuels, Veneman arrived at the conference in an ethanol-powered automobile with Minnesota Agriculture Commissioner Gene Hugoson. Veneman made the announcement with Mark Kennedy, Minnesota’s second district Congressman, who along with first district Congressman Gil Gutknecht, invited her to speak at the 34th Annual Minnesota Agri-Growth Council.
“This administration strongly supports renewable fuels such as ethanol and biodiesel as important parts of the nation’s energy plan,” Veneman said. “The funds we are announcing today will help communities produce alternative fuels and strengthen rural economies.”
She told the audience of farmers and agribusiness leaders that Minnesota will receive $22,576,400 to help increase access to business opportunities and improve community infrastructure. These dollars include: a $9.9 million guaranteed loan to the Minnesota Valley Electric Cooperative which will use the loan to add 63 miles of electric distribution to benefit 1,130 new consumers; $950, 000 in loans to assist in the production of ethanol and other business ventures; $10.5 million in loans and grants to improve 7 community water and waste water systems; and a $750,000 loan to support local efforts to provide businesses with access to much needed financing through a revolving loan fund.
The state breakout of the dollars includes:
Arkansas - $750,000 | Kentucky - $6,948,000 | Pennsylvania - $750,000 |
Colorado - $13,202,000 | Louisiana - $6,197,000 | S. Carolina - $8,100,000 |
Florida - $11,413,000 | Minnesota - $22,576,400 | S. Dakota - $9,305,000 |
Georgia - $21,625,000 | Missouri - $11,366,000 | Tennessee - $450,000 |
Hawaii - $500,000 | Montana - $750,000 | Texas - $12,034,000 |
Illinois - $103,670,000 | North Carolina - $950,000 | Vermont - $345,000 |
Iowa - $15,212,000 | N. Dakota - $575,000 | Virginia - $150,000 |
Kansas - $3,550,000 | Oklahoma - $9,187,000 | Wisconsin - $200,000 |
Loan and grants funds are being provided through four USDA Rural Development programs: the Rural Economic Development Loan and Grant (REDLG); the Intermediary Relending Program (IRP); the Rural Electric Loan program; and the Rural Water and Environmental Programs. Over 90 percent of the funds announced will provide guaranteed loans to electric cooperatives in 14 states to increase access for nearly 19,000 rural consumers to rural electric service. The guaranteed loans are provided in cooperation with the Federal Financing Bank (FFB).
USDA Rural Development serves as the lead federal entity for rural development needs, and administers financial and technical assistance. 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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