News Release

Contact: Taylor Oldroyd, (202) 720-1019

AGREEMENT TO HELP EXPAND ECONOMIC MARKETS IN RURAL AMERICA

     WASHINGTON, D.C., Sept. 6, 2002--Agriculture Under Secretary for Rural Development Thomas C. Dorr announced this week the signing of an agreement between the U.S. Department of Agriculture and the National Credit Union Administration (NCUA) in support of President Bush's efforts of increasing economic opportunity in rural America by improving access to capital for businesses and homeownership.

     "This agreement is important because it will provide USDA a unique economic development opportunity to increase the availability of financing for business, housing and community development while promoting the creation of new jobs in rural America," said Dorr. "The opening of new markets will bring credit unions greater flexibility in developing lending strategies and stimulating further local economic development in historically underserved areas."

     Under this agreement, USDA and NCUA will promote the availability of resources through USDA to assist the low-income population in communities served by credit unions. In addition, the partnership will focus on and heighten credit union awareness of USDA-Rural Development programs and the potential use of these resources as funding sources for credit unions involved in the asset-building strategies for low-income members.

     Partnership efforts between USDA and NCUA are another way in which the Bush Administration is working to foster the creation and expansion of businesses, employment opportunities and community development in rural communities through unique public-private partnerships.

     The National Credit Union Administration is an independent federal agency that supervises and insures approximately 6,000 federal credit unions and insures approximately 3,300 state-chartered credit unions. Headquartered in Virginia, NCUA has six regional offices in New York, Virginia, Georgia, Illinois, Texas and California.

     USDA Rural Development serves as the lead federal entity for rural development needs and administers financial and technical 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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