News Release

Alisa Harrison (202) 720-4623
Tim McNeilly (202) 690-0498

VENEMAN ANNOUNCES $22 MILLION IN LOANS FOR RURAL PENNSYLVANIA

     WASHINGTON, March 11, 2002--Agriculture Secretary Ann M. Veneman today announced as part of $22 million in loans for rural Pennsylvania, the first loan to be approved in 2002 to provide improved telecommunications service in rural America. A $5 million loan will go to LMDS Communications, Inc., to provide enhanced telecommunication service to nearly 55 communities in western Pennsylvania and southwestern New York. A $17 million guaranteed loan has been approved for the development of the Mountain Laurel Center for Performing Arts in Pike County, Pa.

     "Investing in new and improved telecommunication services is important to rural communities," said Veneman. "These funds will provide additional broadband telecommunications services to communities in rural Pennsylvania."

     USDA's Rural Utilities Service (RUS) broadband pilot loan program, begun in 2001, provided $100 million in funds in 2001 to qualified borrowers. For 2002, RUS has $80 million in funds for the program. The $5 million loan to LMDS Communications, Inc. will provide digital two-way voice, data, and video capability that is a vital tool for rural communities to develop businesses, attract quality jobs, enhance education and learning opportunities, and improve the quality of rural health care.

     USDA's Rural Housing Service community facility guaranteed loan program provides financing for a variety of community services, including fire and rescue buildings and equipment, municipal facilities, health and child care facilities, and cultural and social facilities. The $17 million guaranteed loan to the Pike County Industrial and Commercial Development Authority completes the financing of the $35 million Mountain Laurel Center for Performing Arts complex. $15 million is being provided through the state of Pennsylvania and $3 million from various grants and private sector support.

     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.

#

Return to Rural Development News and Information Room.