Contact:Tim McNeilly, (202) 690-0498
tmcneill@rdmail.rural.usda.gov

USDA ANNOUNCES $8.4 MILLION IN LOANS AND GRANTS FOR RURAL ECONOMIC DEVELOPMENT

     WASHINGTON, May 24, 2001--USDA Rural Development announced today the selection of 29 rural business and community development proposals in 14 states to receive $8.4 million in loan and grant funds. The funds will leverage private and other public funding to create 481 new jobs in rural areas and establish locally-controlled business revolving loan programs.

     Under the Rural Economic Development Loan and Grant (REDLG) program, $7.7 million in zero-interest loans will be leveraged by $27.5 million in funding from other sources. The funds, administered by local electric and telephone cooperatives, will be used to establish and expand rural business enterprises and to build and improve local public facilities, directly creating 456 new jobs and helping to sustain another 472 existing positions.

     In addition, four grants totaling $718,000 will be used to establish revolving loan funds operated by rural electric utilities. The first four loans from these funds will be made to non-profit entities and rural communities to finance medical facilities, infrastructure and community services necessary to promote economic growth. The loans will generate an estimated 25 new jobs and preserve 45 existing jobs.

     A list of the individual loan and grant recipients can be found at http://www.rurdev.usda.gov/
rd/newsroom/2001/redlgreciplist.html. For further information on USDA rural business programs visit http://www.rurdev.usda.gov/rbs/.

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