USDA ANNOUNCES OVER $5 MILLION FOR RURAL ECONOMIC DEVELOPMENT IN OREGON

PENDLETON, Ore., September 13, 2002 - Agriculture Secretary Ann M. Veneman announced the approval of over $5 million in U.S. Department of Agriculture funds to assist with local business and community development in rural Oregon, as part of an ongoing effort by the Bush Administration to stimulate new business and job creation in rural America.

"President Bush's economic summit in August underscored the important role USDA can play in promoting the development of jobs and business creation in rural areas," said Veneman. "These funds will provide rural communities and residents in Oregon with new opportunities for such economic growth."

Veneman was accompanied by Sen. Gordon Smith during her visit to Oregon where she announced the projects. These initiatives will build water and wastewater infrastructure that is expected to help improve the overall economic and community development climate for the following rural Oregon communities:

City of Sisters - $350,000 wastewater grant. The funds will be used to finish construction of a citywide wastewater collection and treatment project. The new system is expected to benefit nearly 1,000 users.

City of Moro - $360,200 water loan and grant package ($200,000 loan/ $160,200 grant). Funds will be used to replace four sections of the existing water distribution system. Improvements will allow for increased water flow, pressures, and reliability. The loan portion will have a 40-year repayment period at an interest rate of 4.75 percent.

City of Harrisburg - $4,300,000 water loan and grant package ($2,431,600 loan/ $1,868,400 grant). Funds will be used to increase the capacity of the water system. The loan portion will have a 40-year repayment period at an interest rate of 4.75 percent.

Lake County - $172,200 wastewater loan and grant package ($91,600 loan/ $80,600 grant). Funds will be used to improve the existing solid waste disposal facility. The loan portion will have a 40-year repayment period at an interest rate of 4.75 percent.

City of Adair Village - $39,000 water grant. Funds will be used to reline the Hospital Hill Reservoir that has suffered a 20-million gallon water loss per year.

Housing For People, Inc., Hood River, Ore. - $300,000 self-help housing technical assistance grant. Funds will be used to fund a mutual self-help housing project to construct 16 homes. In the mutual self-help housing program, families work together to build their own home and use the "sweat equity" labor as a down payment.

On August 20, 2002, Secretary Veneman also announced funding to assist with water and wastewater infrastructure needed to bring new economic growth to the following rural communities:

City of Grass Valley - $714,600 ($299,600 loan/ $415,000 grant)

City of Monroe - $2,222,070 ($555,520 loan/ $1,666,550 grant)

Oregon Water Wonderland Unit II Sanitary District - $4,312,174 ($1,961,500 loan/ $2,350,674 grant)

USDA Rural Development serves as the lead federal entity for rural development needs and administers financial and technical assistance through three agencies: Rural Housing Service, Rural Business-Cooperative Service and Rural Utilities Service. Further information on USDA Rural Development can be obtained by contacting any USDA Service Center or by visiting USDA's web site at http://www.rurdev.usda.gov.

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