AGRICULTURE SECRETARY VILSACK ANNOUNCES $13.9 MILLION IN ECONOMIC DEVELOPMENT FUNDING

WASHINGTON, Sept. 21, 2009 - Agriculture Secretary Tom Vilsack today announced that USDA has selected 23 recipients to receive more than $13.9 million in loans and grants to spur economic development in rural communities in 16 states and the Western Pacific.

"The Obama Administration continues looking for ways to strengthen the nation's rural communities and provide a foundation for economic growth," Vilsack said. "The assistance we are announcing today will help create and retain jobs to build a stronger economic future for rural areas."

For example, the Alabama Department of Agriculture and Industries has been selected to receive a $500,000 loan through USDA Rural Development's Intermediary Relending Program to relend to businesses throughout Alabama targeting applicants who propose investments in alternative fuel production and delivery, businesses in low income and high unemployment areas, and minority and women-owned businesses. The economic activity generated by these loans is expected to create and save at least 200 jobs.

Intermediary Relending Program funds are awarded to community-based development or regional planning groups that then re-lend the money to local businesses. The loans must be used to create or retain jobs by starting or expanding businesses.

Funding of each recipient is contingent upon the borrower meeting the conditions of the loan or grant agreement. The following is a complete list of applicants that were selected to receive USDA Rural Development economic development funds. These funds are not from the American Recovery and Reinvestment Act.

Recipients Include:

Alabama:

Alabama Department of Agriculture and Industries- $500,000 loan

California:

State Assistance Fund for Enterprise, Business, and Industrial Development Corporation - $500,000 loan

Sierra Economic Development Corporation - $500,000 loan

Colorado:

Colorado Housing and Finance Authority - $750,000 loan

Iowa:

Grow Iowa Foundation, Inc. - $328,219 loan

Cresco Industrial Corporation - $400,000 loan

Maine:

Coastal Enterprise, Inc. - $750,000 loan

Massachusetts:

Cape and Islands Community Development, Inc. - $750,000 loan

Montana:

Ravalli County Economic Development District - $335,000 loan

New Jersey:

Cooperative Business Assistance Cooperative - $750,000 loan

North Carolina:

Dunn Area Committee of 100 - $750,000 loan

East Carolina Development Company, Inc. - $750,000 loan

Oregon:

South Central Oregon Economic Development District - $300,000 loan

Pennsylvania:

Community First Fund - $495,000 loan

South Carolina:

Appalachian Development Corporation - $328,219 loan

South Dakota:

West River Foundation - $750,000 loan

Texas:

Alamo Economic Development Corporation - $750,000 loan

Development Corporation of Mercedes - $750,000 loan

Vermont:

Vermont Community Loan Fund - $500,000 loan

Vermont Small Business Development Corporation - $750,000 loan

Vermont 504 Corporation - $750,000 loan

Western Pacific:

National Development Bank of Palau - $750,000 loan

West Virginia:

Natural Capital Investment Fund - $750,000 loan

USDA Rural Development's mission is to increase economic opportunity and improve the quality of life for rural residents. Rural Development fosters growth in homeownership, finances business development, and supports the creation of critical community and technology infrastructure. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA Rural Development's web site at www.rurdev.usda.gov/rbs/busp/bprogs.htm.

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USDA is an equal opportunity provider, employer and lender. To file a complaint of discrimination, write: USDA, Director, Office of Civil Rights, 1400 Independence Ave., S.W., Washington, D.C. 20250-9410 or call (800) 795-3272 (voice), or (202) 720-6382 (TDD).