USDA BOOSTS RURAL LIVING STANDARDS WITH NEW GRANT PROGRAM


                                              Release No. 0185.97

                                     Laura Trivers (202) 720-4623
                                                ltrivers@usda.gov
                                      Dan Campbell (202) 720-6483

USDA BOOSTS RURAL LIVING STANDARDS WITH NEW GRANT PROGRAM  
                                                                 
     WASHINGTON, June 9, 1997--Agriculture Secretary Dan Glickman today
announced the first five grants issued under a new program designed to help
rural areas build vital community facilities, such as schools, health
clinics and fire stations. Rural communities in Arkansas, Indiana, Ohio,
South Dakota and Vermont are recipients of the grants issued by USDA's Rural
Development mission area.
     
     "USDA has long provided direct and guaranteed loans under its
Community Facilities Program, but the new grant component of the program
will enable the department to extend help to some of the nation's neediest
rural communities," Glickman said. "Access to community facilities is
essential if rural America is to enjoy the same quality of life as found in
the nation's cities and suburban areas."     
     
     USDA has been authorized to issue $6.4 million in grants for community
facilities in 1997. The grants are targeted for small rural communities that
serve predominantly low-income people. Four of the five grants issued to
date will be bolstered with loans issued under the Community Facilities
Program.

     "The rural fabric of our nation will be strengthened by this new
effort," said Jill Long Thompson, USDA Rural Development under secretary.  
"It will help USDA ensure that rural people have access to services such as
child care, medical care,  senior services and police protection."  
     
     The first five community facilities grants have been issued to:

     * Arkansas -- The Southwest Arkansas Community Development Corporation
received a $15,000 grant and a $65,250 loan from USDA to purchase and
renovate a building which will be used as a child care center in Lafayette
County.

     * Indiana -- The Lincoln Hills Development Corporation received a
$49,000 grant and a $301,000 loan from USDA to renovate and enlarge a
building that will provide various services to low-income citizens in Perry
County.

     * Ohio -- Monroe County has received a $108,500 grant and a $488,000
loan from USDA to construct a county government office building; tenants
will include the county's  senior center, health department, parks division
and housing authority.

     * South Dakota -- The Town of Fairfax has received a $15,000 grant
from USDA to complete construction of a new fire station.

     * Vermont -- North East Kingdom Community Action Inc. has received a
$10,000 grant and $126,000 loan from USDA to purchase and renovate a
building which will house a Head Start program.  

     USDA Rural Development issues Community Facilities Program loans and
grants to public bodies and nonprofit community development organizations.
For more information on how to apply for the program, contact your state
USDA Rural Development office, or call the national office at (202) 720-1490. 


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The USDA Rural Development mission area was created in 1994 by merging rural
economic programs that had been splintered among the Farmers Home
Administration, Rural Development Administration, Rural Electrification
Administration and the Agricultural Cooperative Service. Its mission is to
use the resources of USDA to provide an improved quality of life for the
nation's 53 million rural people.

                                 
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