For full story please click on this link: http://www.usda.gov/2004/10/0485.xml Release No. 0485.04 Julie Quick (202) 720-4623 Claiborn Crain (202) 720-1263 NEW FUNDING SOURCE AVAILABLE FOR RURAL ECONOMIC DEVELOPMENT WASHINGTON, Oct. 29, 2004 -The U.S. Department of Agriculture today announced the creation of a new rural development program that will provide a long term funding mechanism for loans and grants to rural America. "President Bush is committed to increasing economic opportunity and improving the quality of life in rural communities," Agriculture Secretary Ann M. Veneman said. "This new source of capital for rural economic development will bring new jobs to rural America. This assistance will be available to some of the most isolated and rural areas of the country." Rural Development's Rural Economic Development Loan and Grant Program (REDLG) manages these projects. New regulations published today will enable USDA to guarantee up to $3 billion bonds or notes of not-for-profit lenders for up to 20 years, if the proceeds are used for electric and telecommunications loans. The lender, whose notes the Government will guarantee, will be required to pay an annual fee of 30 basis points over the term of the unpaid debt. Most of the 30 basis points will be deposited into the REDLG program. The program was authorized by Section 6101 of the 2002 Farm Bill. Like other Rural Development programs, local leaders will make the decisions on what projects are needed in their communities. The REDLG program provides zero-interest loans and grants for all types of community and economic development projects. Past projects have included fire trucks, libraries, health facilities and industrial parks. >From the beginning of this program in 1989, USDA Rural Development has invested approximately $250 million in over 1,000 projects across the country, leveraging an additional $1.4 billion in private sector funds and creating an estimated 28,000 jobs. During the Bush Administration, approximately $90 million has been invested creating or saving almost 15,000 jobs. 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. Rural Development provides equity 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 News oc.news@xxxxxxxx 202 720-4623 ---------------------------------------------------- To unsubscribe, send email to oc.news@xxxxxxxx and reference your email address.
