INDIANAPOLIS, Ind. Aug. 18, 2005 -Agriculture Deputy Secretary Chuck Conner today announced the approval of $34.6 million in USDA Rural Development funds to support the development and expansion of rural telecommunication technologies in targeted rural areas in the states of Alabama, Indiana, Maryland, Michigan, New Hampshire and Virginia.

Conner made the announcement at the Indiana State Fair, prior to holding the eighth in a series of USDA Farm Bill Forums that are currently being held around the country by Agriculture Secretary, Mike Johanns, Conner and other USDA officials.

The funding will bring first-time telephone service to remote areas of Michigan, and for the first time, USDA will finance broadband infrastructure using electric power lines. These investments are part of the Bush Administration's effort to bring universal access to all rural households and businesses by 2007.

"Technologies are rapidly changing and USDA is helping rural America to meet the demands for building state-of-the-art broadband infrastructure to bring universal access to all rural households and business," said Conner. "These funds will help improve the quality of life and allow rural communities to create new economic opportunities and jobs for the future."

In Alabama, Conner said International Broadband Electric Communications, Inc. of Hokes Bluff, Alabama, has been approved to receive a $19.2 million loan to install new technology, using existing electric power lines and to improve access for residents in 17 counties in the states of Alabama, Indiana, and Virginia.

In Maryland, Bay Broadband Communications has been approved for a loan of $4.4 million to construct a wireless high-speed broadband network with 92 distribution sites in rural eastern Maryland. The network will service 14 communities in four counties, with nearly 5,000 homes and over 3,000 businesses projected to be initial subscribers.

In Michigan, Allband Communications Cooperative of Hillman, Michigan, has been approved for an $8 million loan to construct a fiber-to-the-home telephone and broadband system in portions of Alcona, Alpena, Montmorency and Oscoda Counties. The funds will bring first-time telephone and broadband service to over 300 Northeastern Michigan residential and business subscribers.

In New Hampshire, New London Hospital Association Inc. of New London, New Hampshire, has been approved for a $3.1 million Distance Learning and Telemedicine loan/grant combination ($2.682 million in loan/ $268,000 grant) to install state-of-the-art electronic medical record filing systems and picture archive communication systems; renovate and expand clinical offices and install five distance learning classrooms in the health centers. The classrooms will include thirty-five desktop computers and seventeen Webcast stations. Fourteen towns in rural southwestern New Hampshire, within Merrimack County and Sullivan County, are in the service area.

Conner added that since the beginning of the Bush Administration over $3.4 billion has been invested by USDA Rural Development to provide over 1.3 million rural homes and businesses with access to high-speed broadband connections.

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.