WASHINGTON, June 29, 2006-Agriculture Deputy Secretary Chuck Conner today announced the award of $4 million in low interest loans to organizations in five states to promote business and economic development.

"These funds will benefit rural communities through the creation or saving of approximately 600 jobs," said Conner. "This program is part of our commitment to foster a business climate that allows established businesses to expand and new businesses to thrive, strengthening our economy."

The funding will be provided through the USDA Rural Development Intermediary Relending Program, which helps to alleviate poverty and increase economic activity and employment in rural communities through financing targeted primarily towards smaller and emerging businesses, in partnership with other public and private resources. Loans are made to intermediaries that establish programs for the purpose of providing loans to ultimate recipients for business facilities and community developments in a rural area.

For example, the North Central Pennsylvania Regional Planning and Development Commission will provide low interest loans to promote business and community development in Cameron, Clearfield, Elk, Jefferson, McKean and Potter counties, creating or saving an estimated 40 jobs.

South Dakota's Greater Huron Development Corporation will provide loan funds to businesses in Beadle County that will create or save an estimated 360 jobs. For more information about the Intermediary Relending Program go to http://www.rurdev.usda.gov/rbs/busp/irp.htm or contact any Rural Development office.

The loan recipients are:

USDA Rural Development's mission is to increase economic opportunity and improve the quality of life in rural communities. As a venture capital entity, Rural Development has invested over $63 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. Over 1.1 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.