WASHINGTON, June 23, 2004 - Agriculture Secretary Ann M. Veneman announced today that 23 applicants from 19 states have been selected to receive over $12.3 million in loan and grant funds to assist with job and business development. The funds are part of the ongoing effort by the Bush Administration to spur additional economic activities in rural areas.

"President Bush is firmly committed to helping communities spur economic activity and build strong local economies," said Veneman. "These capital investments will help to create new job opportunities and improve the quality of life for rural citizens."

Veneman said the $12.3 million investment will help finance over 156 rural businesses, enabling them to create or save over 1,349 jobs. Many recipients will use the funding to expand businesses that play a major role in their communities, make available increased and more advanced health care, provide for the installation of sewer, water and power to businesses, and to capitalize on tourism to rural areas. The funds are also being given to assist Tribal governments with developing their own local businesses.

In Minnesota for example, North Itasca Electric Cooperative, Inc. of Big Fork, Minnesota was selected to receive a $450,000 loan which they will use to provide a loan to assist in the remodeling and construction of a new addition to the North Itasca Health Care Center. This will provide its rural users with more advanced and available health care. Our Daily Bread, Inc., a hometown bakery, was selected to receive $70,000 in order to expand their family business, which is currently based out of their garage. Their funds will be put towards renovating a local building in their town, acquiring additional equipment and a delivery van. Their new location on main street will provide a social gathering point for their community members who wish to do business at their bakery.

"We are committed to investing in the future of America's rural communities," said Acting Agriculture Under Secretary for Rural Development Gilbert Gonzalez. "Together, local communities and USDA, are bringing new economic opportunities and an improved quality of life to rural residents across America."

Over $10 million of the loans announced today will support local business revolving loan funds to finance business facilities and community development projects in rural areas by re-lending funds locally to support business or community development. The remaining $2 million will support local cooperative organizations, which will utilize the funds by providing loans or grants to support local economic or community development efforts. A complete list by program area can be found at www.rurdev.usda.gov. Funding of individual recipients will be contingent upon meeting the conditions of the loan or grant agreement.

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.