USDA Announces Rural Economic Development Loan And Grant Recipients

BY: U.S. DEPARTMENT OF AGRICULTURE

 

WASHINGTON, April 4, 2008 – USDA Rural Development Under Secretary Thomas C. Dorr today announced the award of 64 loans and grants totaling more than $30 million to assist rural communities and businesses in 19 states.

“These funds help create jobs, economic opportunity and essential services in rural areas, underscoring the Bush administration’s commitment to strengthening our nation’s economy.” Dorr said.

The funds are being provided through USDA Rural Development’s Rural Economic

Development Loan and Grant program. Under the program, Rural Development provides loans and grants to Rural Utilities program borrowers, usually rural telephone or electrical cooperatives, which in turn provide loans to rural businesses and communities in their service areas. Rural Development will provide $23,180,200 in loans and $6,826,960 in grants to the successful applicants. Funding of individual recipients is contingent upon their meeting the conditions of the loan or grant agreement.

Projects being funded include a $740,000 loan to Redwood Electric Cooperative to construct a rail line and purchase rail cars to transport ethanol from a 50-million-gallon-per-year ethanol facility to be built in Clements, Minn. The project is expected to create 31 jobs. Also included is a $740,000 loan and $300,000 grant to the Western Illinois Rural Electric Cooperative to fund the infrastructure necessary for a new facility for Memorial Hospital Association. This project is expected to retain 159 jobs and create 25 new ones.

The projects funded today are expected to create or save an estimated 4,050 jobs in 19 states. The states are: Colorado, Georgia, Hawaii, Illinois, Iowa, Kansas, Kentucky, Louisiana, Minnesota, Mississippi, Missouri, Nebraska, North Carolina, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee and Wisconsin.

A complete list of loan and grant recipients is available on the USDA Rural Development web site at http://www.rurdev.usda.gov.

The mission of USDA Rural Development is to increase economic opportunity and improve the quality of life for rural residents. Rural Development has invested nearly $91 billion since 2001 for equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. More than 1.7 million jobs have been created or saved through these investments. Further information on rural programs is available at local USDA Rural Development offices or by visiting USDA’s web site at http://www.rurdev.usda.gov.

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