WASHINGTON, June 14, 2005 - Agriculture Deputy Secretary Chuck Conner today announced the selection of 35 loan and grant recipients in 18 states that will receive $16.3 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 3,000 rural jobs as part of the Bush Administration's ongoing efforts to spur economic development in rural areas.

"Economic vitality of rural America depends on local business and community leaders having the resources to increase economic opportunities and improve the quality of life," said Conner. "These loan and grant investments will allow for the creation and retention of thousands of rural jobs."

Over $11.6 million in Rural Economic Development Loans and Grants (REDLG s) will be 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 a $400,000 loan to Western Cooperative Electric Association, Inc. in WaKeeney, Kansas will help Trego County Hospital construct a medical office building, six units of assisted living and make other improvements to the hospital.

An additional $3.4 million in loan funds will be used to assist local re-lending intermediaries establish or expand revolving loan funds to support business development or expansions. Grants totaling $1 million will be made available to local public broadcasting stations for educating viewers on rural matters.

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/.

In conjunction with today's announcement USDA signed a $1 billion guarantee note with a lender who will pay an annual fee for the federal guarantee, a portion of which will be available for the REDLG program. The signing of the guarantee will provide an estimated $52 million in funding for the REDLG program.

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 $54 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 1 million 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.