How USDA Rural Development Can Help You - Michael Jones, USDA 2008

How USDA Rural Development Can Help You

Author: Michael L. Jones
Public Affairs Director
U.S. Department of Agriculture

Mid-western rural communities are at a cross roads today. With the growing global demand for green and renewable energy, the rural mid-west has become fertile ground for developing bio-fuel facilities such as corn-based ethanol and soy diesel. These new facilities enhance rural communities by infusing capital into the local economy, creating jobs and in some cases offering investment opportunities for local farmers. These facilities also increase the demand and price for the corn and soybeans many farmers produce. Even though rural economies have diversified over the years, agriculture continues to influence many mid-western rural economies.

Deployment of high speed internet across the mid-west also holds great opportunity for investment and job creation as well. Successful entrepreneurs no longer need to limit their residency to specific geographical locations. And the lifestyle advantages of the mid-west are sure to benefit the region from this new business portability.

While there is still great hope and optimism for the future in the rural mid-west, many small towns in this region face significant challenges in meeting basic infrastructure, business development and affordable housing needs.

The United States Department of Agriculture’s Rural Development division is the Federal agency charged with helping rural communities capitalize on these great new opportunities for the future, as well as meeting the demands of basic community needs. As the community development arm of the USDA, Rural Development administers more than 40 programs designed to assist rural communities with the planning and funding of local economic development initiatives. The agency’s major program funding areas include; Business Development Programs, Community Programs, and Housing Programs.

The Business Development Programs provide financing which enables communities to encourage business start-ups or expansion projects that stimulate job growth and expansion. The Rural Business Enterprise Grant Program, for example can be used to establish a local revolving loan fund to assist small business start-ups. The Business and Industry Loan Guarantee Program can help businesses refinance current short-term debt, purchase new equipment or expand a manufacturing facility. Special programs for the establishment or expansion of Renewable Energy facilities are also available.

The Community Development Program provides grants, loans and loan guarantees for essential community facilities such as libraries, hospitals, childcare centers, court houses and first responder equipment/vehicles. Financing for small community water and sewer facilities are also available. The deployment of Broadband high speed internet service, distance learning and telecommunications projects are also part of the Community Program funding spectrum.

Rural Development’s Housing Programs provide financing for low income multifamily housing projects as well as homeownership financing. By partnering with lending institutions, the State’s tax credit authority, developers and other non-profits, Rural Development has become a key player in providing safe, affordable housing options for struggling rural families. Our homeownership programs provide a direct loan program for low and very low income families. And, the homeownership guarantee program provides a fixed rate product that is now in great demand following the collapse of the sub-prime housing market.

This is a very exciting time to be involved in community and economic development in America’s rural heartland. We are on the cusp of a Rural Renaissance that is going to transform our definition of rural prosperity. As we sit at the cross roads of new opportunities in energy production and a cyber economy providing a business portal to the world, we must also ensure that small communities remain strong and vibrant. Rural Development is prepared to be your partner not only in new ventures, but in traditional programming that meets today’s community needs. Please take a few minutes to learn more about USDA Rural Development by visiting us on the web at http://www.rurdev.usda.gov.