News Release

Contact: Lorraine Shin, (808) 933-8302
Taylor Oldroyd, (202) 720-1019

USDA ANNOUNCES $336,000 GUARANTEED LOAN FOR RURAL HAWAII HEALTH CLINIC

     WAIKOLOA, Hawaii, January 17, 2003--Agriculture Deputy Secretary James Moseley today announced the approval of a conditional commitment for a $336,000 guaranteed loan to Bank of Hawaii, which is seeking to assist The Bay Clinic, Inc., located in Keaau, Hawaii, with the purchase of medical and dental equipment, furniture, fixtures and computer equipment.

     "Providing quality health care in rural areas is critical. Through such partnership financing, we can help local communities provide residents with services that focus on improving the overall quality of life in rural Hawaii," said Moseley.

     Moseley was in Hawaii this week to address the National Council of Farmer Cooperatives at their annual conference. While in Hawaii Moseley highlighted the recent approval of a $215 million loan to assist Kauai Island Utility Cooperative finance the purchase of the Kauai Electric system that provides service to 31,000 customers.

     USDA Rural Development community facility guarantee loans are made and serviced by lenders such as banks, savings and loans, mortgage companies which are part of bank holding companies, banks of the Farm Credit System, or insurance companies regulated by the National Association of Insurance Commissioners. Rural Development may guarantee up to 90% of any loss of interest or principal on the loan. Facilities which can be financed include schools, libraries, childcare, hospitals, medical clinics, assisted living facilities, fire and rescue stations, police stations, community centers, public buildings and transportation.

     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 and the Office of Community Development. 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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USDA Rural Development is an Equal Opportunity Lender, Provider, and Employer. Complaints of
discrimination should be sent to: USDA, Director, Office of Civil Rights, Washington, D.C. 20250-9410

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