VENEMAN ANNOUNCES $ 11.3 MILLION IN RURAL DEVELOPMENT ASSISTANCE DURING VISIT TO CALIFORNIA USDA

To Assist With Business Development and Water Needs

LAKE ARROWHEAD, Calif., August 8, 2003 – Agriculture Secretary Ann M. Veneman today announced the selection of $11.3 million in loan and grant requests to meet business and water infrastructure needs in rural California.

“These investments recognize the important role rural entrepreneurs and the local infrastructures play in boosting our rural economy,” said Veneman. “A major key to economic viability is to assist rural communities with infrastructure needs and the needs of local citizens.”

Veneman made the following announcement while visiting California:

Amador Water Agency, Shutter Creek, Calif., (Amador County) -- $7,000,000 loan and grant package ($5,000,000 loan and a $2,000,000 grant) to construct a new water treatment plant near the community of Pioneer. The project will serve 3,000 residents in the area.

Terry and Debi Moule, Shingle Springs, Calif., (El Dorado County) -- $1,451,000 business guaranteed loan to finance the purchase and development of a one-acre section of commercial property to be used as a commercial lease facility located in Shingle Springs. Heritage Bank of Commerce is the lender for this project.

William Lowe, Danville, Calif., (El Dorado County). -- $1,759,000 business guaranteed loan to provide long-term financing for the purchase and development of approximately an acre of commercial property to be used as a car wash facility located in El Dorado Hills, Calf. Bridge Bank is the lender for this project.

Garmo & Sons, Inc., Brawley, Calif. (Imperial County) -- $1,180,000 business guaranteed loan to provide long-term financing for the development of a 1.24-acre of commercial property to be used as a convenience store and gas station located in Brawley, Calif. Cuyamaca Bank located in La Mesa, Calif. is the lender for this project.

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 provides equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. 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 .

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