New loan and grant for Usa rural economic development

by S. C.

Agriculture Secretary Tom Vilsack announced that 17 utilities in 12 states have been selected to receive $9.2 million through USDA Rural Development's Rural Economic Development Loan and Grant program.

"These loans and grants help rural communities keep existing businesses, attract new ones and stimulate local economies," Vilsack said. "USDA is partnering with local utilities to provide needed capital for economic development."

The projects are expected to create or save more than 799 jobs in Georgia, Iowa, Kansas, Kentucky, Minnesota, Missouri, Mississippi, North Dakota, Oklahoma, South Dakota, Tennessee and Wisconsin.

In Iowa, for example, the City of Pocahontas will use a $300,000 grant to expand its existing revolving loan fund. The city will provide a $60,000 match so that $360,000 can be loaned to the Pocahontas Area Community School District, which recently passed a bond referendum to build a new 6th grade - 12th grade classroom addition. Funds will be used to make energy-efficiency updates in the new classrooms, including improved lighting and high-efficiency boilers. The school district also will use the funds to assist with purchasing 250 laptop computers for high school students. Without the Rural Development assistance, the district would have had to remove several technology and energy-efficiency items from the project because construction costs exceed original estimates.

In Kentucky, the South Kentucky Rural Electric Cooperative Corp., Somerset, Ky., has been selected to receive a $740,000 loan and $300,000 grant to finance the construction of a network operations building for The Center for Rural Development. The center serves one of the most economically, environmentally and educationally challenged areas of the country. The center plans to use the new building to provide technical assistance to businesses and residents.