News Release

Contact: Alisa Harrison (202) 720-4623
Tim McNeilly (202) 720-1019

VENEMAN ANNOUNCES INVESTMENT OF $2.8 MILLION IN BUSINESS DEVELOPMENT FUNDS FOR RURAL KANSAS
Funding to Create or Save Nearly 170 Rural Jobs/9 Rural Business Ventures

     BONNER SPRINGS, Kans., June 6, 2003--Agriculture Secretary Ann M. Veneman today announced the selection of nine loan and grant recipients in Kansas that will receive $2.8 million in business development funds to support economic development in rural Kansas communities. The loans and grants are expected to assist in creating or saving nearly 170 rural jobs as part of the Bush Administration's ongoing efforts to spur economic development in rural areas.

     "These business development investments will support local community efforts to bring economic growth and employment opportunities to rural Kansas," said Veneman. "This assistance underscores the commitment of the Bush Administration to a vibrant and healthy rural America."

     At a recent speech to the Economic Club of Chicago, President Bush said, "We cannot be satisfied until every part of our economy is healthy and vigorous. We will not rest until every business has a chance to grow, and every person who wants to find work can find a job."

     "USDA Rural Development is vigorously working with rural leaders to support local efforts to bring new business investment into their community. It is good for the community, it is good for the economy and it is good for rural Americans working to create a better life for their families," said USDA Under Secretary for Rural Development Thomas C. Dorr.

     Veneman announced the selection of the following business loans while in Kansas:

Wheatland Electric Cooperative, Inc., Greeley County, Kans. -- $450,000 rural economic development loan to assist the purchase of equipment for an ethanol facility in Greely County.

Sedgwick Electric Cooperative, Inc., Sedgwick County, Kans. -- $360,000 rural economic development loan to assist provide working capital for machinery and equipment for a start-up value-added, vertically integrated farm product retail store to be located in Newton, Kansas.

S&T Telephone Cooperative Association, Thomas County, Kans. -- $35,000 rural economic development loan to assist a family in purchasing a grocery store.

Bluestem Electric Cooperative, Inc., Nemaha County, Kans. -- $200,000 rural economic development loan to assist in financing the expansion of family-owned business to include a new building and additional equipment and vehicles.

Pioneer Electric Cooperative, Inc., Grant County, Kans. -- $450,000 rural economic development loan to assist in the financing of a sweat corn processing facility in Ulysses, Kansas.

S&T Telephone Cooperative Association, Thomas County, Kans. -- $136,320 rural economic development loan to assist in the financing of the purchase of equipment to open an implement store in Goodland, Kansas.

Sumner-Cowley Electric Cooperative, Inc., Sumner County, Kans. -- $450,000 rural economic development loan to assist in the start-up a water bottling company in Caldwell, Kansas.

Ark Valley Electric Cooperative, Inc., Barton County, Kans. -- $326,000 rural economic development loan to assist in the expansion of a century old business in Claflin, Kansas.

Bluestem Electric Cooperative, Inc., Pottawatomie County, Kans. -- $450,000 rural economic development loan to assist in the financing of the construction of additional grain storage facilities and equipment.

     The grants and loans are awarded through USDA Rural Development to local organizations, which in turn administer the funds in local efforts. Funds can be used for a variety of purposes, including revolving business loan funds, studies, technical assistance, community facilities, improving medical care and communications, and other projects that encourage a favorable climate for jobs and growth. Many of the awards are made in conjunction with assistance from other sources, "leveraging" USDA funds for greater effect.

     Earlier this week Veneman announced the selection of 97 loan and grant recipients in 24 states that will receive $20.1 million in rural business development funds, including $1.6 million to support economic development in Native American and Native Alaskan communities. The assistance includes Rural Business Enterprise Grants, Rural Business Opportunity Grants, Rural Economic Development Loans and Grants and Rural Business Enterprise & Television Demonstration Grants. The recipients are more than 80 cooperatives, non-profit corporations, local governments, tribal authorities, and other entities. A list of the awards can be found at http://www.rurdev.usda.gov/rd/newsroom/2003/2003busdevel.html.

     USDA Rural Development's mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. As a venture capital entity, Rural Development provides equity, liquidity, and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA's web site at http://www.rurdev.usda.gov.

#

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

Return to Rural Development News and Information Room.