USDA LAUNCHES PROGRAM TO BUILD RURAL COMMUNITY FACILITIES
						Release No. 0105.97                

                                    Laura Trivers  (202) 720-4623
                                    Dan Campbell   (202) 720-6483


USDA LAUNCHES PROGRAM TO BUILD RURAL COMMUNITY FACILITIES

     WASHINGTON, April 8, 1997--Agriculture Secretary Dan Glickman today
announced that USDA is making more than $6 million in grants available to
help rural areas build community facilities, such as schools, fire houses,
police stations and medical clinics. The grants will bolster USDA's existing
loan program for community facilities. 
     
      "Buildings such as libraries and fire stations provide more than just
the services they house," said Jill Long Thompson, under secretary for USDA
Rural Development.  "In rural areas where neighbors often live miles apart,
these facilities help build a sense of community and enrich the lives of
everyone--adults and children--in the vicinity."

     In 1997,$6.4 million is available; in future years the program could
be funded at up to $10 million. Grants cannot exceed 75 percent of the cost
of developing a facility. USDA's existing community facilities program is
also offering $64 million in loan guarantees and $130 million in direct
loans to rural communities in 1997.

     Eligible projects include child care centers, libraries and town
halls. In 1996, USDA Rural Development provided $207 million in direct loans
to build 315 facilities and issued $60 million in loan guarantees for 66
projects.
     
     "In urban areas, citizens often take the availability of facilities
such as fire stations and medical clinics for granted," Glickman said.  "But
many rural communities lack the necessary tax or population base to build
them, which is what makes programs such as this one so important to the
quality of life in our nation's rural areas."  

      USDA community facilities loans and grants are usually made to public
entities and nonprofit organizations. Applications can be obtained through
any of USDA Rural Development's 1,200 field offices.

     The public has until June 6, 1997, to comment on the rules for the new
grant program. For more information, contact Jennifer Barton at USDA's Rural
Housing Service in Washington, D.C., (202) 720-1490.
                                
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