WASHINGTON, April 28, 2005 - Agriculture Secretary Mike Johanns today announced the selection of 16 loan and grant recipients in 10 states that will receive $6 million in rural business development funds. The loans and grants will support economic and community development and assist in the creation or saving of over 1,000 rural jobs as part of the Bush Administration's ongoing efforts to spur economic development in rural areas.

"These funds are a critical investment in the future of rural America," said Johanns. "I am pleased to partner with local leaders and I commend them for their work to bring jobs and economic prosperity to their communities."

The grants and loans are awarded through USDA Rural Development to electric and telecommunications cooperative organizations, which in turn provide loans and grants to support local economic or community development efforts.

Funds can be used for a variety of purposes, including community facilities and infrastructure, improving access to local medical care and other projects that encourage a favorable climate for jobs and growth. For instance, in Wisner, Louisiana, a $418,200 loan to Northeast Louisiana Power Cooperative, Inc. will allow a local minnow hatchery to install new equipment for their catfish processing plant. Through this investment, a local 400-job workforce will have greater security in their economic future.

Funding of selected applicants will be contingent upon meeting the conditions of the loan and/or grant agreement. A complete list of selected recipients can be found at http://www.rurdev.usda.gov.

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 has invested over $50 billion since the beginning of the Bush Administration to provide equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. As a result, over 800,000 jobs have been created or saved through these investments. 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.