VENEMAN ANNOUNCES OVER $25 MILLION IN RURAL DEVELOPMENT PROJECTS TO ASSIST IOWA COMMUNITIES
Secretary to Join President Bush at the Iowa State Fair on Wednesday

WACO, Texas, Aug. 13, 2002 - Secretary Ann M. Veneman today announced the release of $25.1 million in rural development grants and loans to assist rural communities in Iowa. Veneman will travel to Iowa on Wednesday, joining President Bush at the Iowa State Fair.

"These funds will provide a tremendous boost for rural communities in Iowa by helping build new water, childcare and ethanol facilities, as well as other business operations," said Veneman. "The President cares deeply about rural America and our team at USDA continues to work aggressively to help strengthen these important programs."

More than half of the 18 projects announced by Veneman are funded through the 2002 Farm Bill signed by President Bush in May. The new farm bill includes a provision to provide funding to reduce the existing backlog of applications for water and wastewater projects. The announcement today will help in that regard.

The President and the Secretary will be in Iowa following an economic forum being held here with working Americans and business leaders. The President is hosting the forum to discuss how to strengthen the nation's economy and create new jobs to help working families.

"Rural America is an important part of this nation's economic fabric," said Veneman. "The President has accomplished a great deal in the short time he has been in office from tax relief to expanded trade opportunities. We need to continue that momentum and this forum today has gathered working Americans from across the country to share ideas on how to move forward."

Project descriptions for the announcements made today are as follows:

City of Orient -- $249,957 community facility loan and grant package ($170,000 loan/ $79,957 grant). Funds will be used to construct a childcare and community center. The Orient-Macksburg School District will operate the childcare center. The loan portion will have a 40-year repayment period at an interest rate of 4.75 percent.

Linn County -- $202,600 wastewater grant. Funds will be used for the completion of a sanitary sewer collection system on East Mt. Vernon Road.

City of Riverton -- $283,000 wastewater loan and grant package ($159,000 loan/ $124,000 grant). Funds will be used to complete the construction of a centralized community wastewater collection and treatment system. The loan portion will have a 40-year repayment period at and interest rate of 4.75 percent.

Siouxland Interstate Metropolitan Planning Council -- $150,000 rural business opportunity grant. Funds will be used to establish a small community partnership program to provide technical assistance for business development in Iowa, Nebraska, and South Dakota.

City of Eldora -- $6,700 community facility grant. Funds will be used for the purchase of medical equipment and supplies for the community medical clinic.

Clay Regional Water -- $4,400,000 water loan and grant package ($3,408,000 loan/ $1,992,000 grant). Funds will be used to extend water lines from the existing Clay Region Water Service area to Buena Vista County. The project will include a tower and a booster station and serve approximately 568 users.

Southern Sioux County Rural Water System -- $2,000,000 water loan and grant package ($1,700,000 loan/ $300,000 grant). USDA Rural Development funds will be used to add a ground storage reservoir and high service pumping station to the existing treatment plant. This project will enhance delivery of water to existing users in southeastern Sioux county. The loan portion will have a 40-year repayment period at an interest rate of 4.75 percent.

Mahaska Rural Water Systems -- $683,000 wastewater loan and grant package ($176,000 loan/ $507,000 grant). Funds will be used in the City of Hamilton to construct a sewer collection system and a force main to connect Hamilton to the City of Bussey's treatment lagoons. The loan portion will have a 40-year repayment period at an interest rate of 4.5 percent.

Xenia Rural Water District -- $6 million water loan and grant package ($3.5 million loan/ $2.5 million grant). Funds will be used to construct a water treatment plant. The treatment plant will eventually serve all or parts of eight counties including Hamilton, Wright, Webster, Humboldt, Calhoun, Pocahontas, Carroll, and Guthrie Counties. The loan portion will have a 40-year repayment period at an interest rate of 4.75 percent.

Lyon & Sioux Rural Water System, Inc. -- $2,130,000 water loan and grant package ($1,280,000 loan/ $850,000 grant). Funds will be used for improvements on the existing treatment plant, additional wells, increased capacity of mains between towers, and additional users within the system. The loan portion will have a 40-year repayment period at an interest rate of 4.75 percent.

Lyon & Sioux Rural Water System, Inc. -- $2,334,000 water loan and grant package ($1,600,000 loan/ $734,000 grant). Funds will be used to add rural users to the existing system and a water treatment plant and tower to serve the City of Larchwood and rural users in Lyon and Sioux Counties. The loan portion will have a 40-year repayment period at an interest rate of 4.75 percent.

Xenia Rural Water District -- $2,135,500 water loan and grant package ($1,700,400 loan/ $435,100 grant). Funds will be used for the construction of water distribution lines in western Hamilton county. The loan portion will have a 40-year repayment period at an interest rate of 4.75 percent.

City of Luxemburg -- $604,000 water loan and grant package ($449,000 loan/ $155,000 grant). Funds will be used for a municipal water system in the city of Luxemburg. The loan portion will have a 40-year repayment period at an interest rate of 4.75 percent.

Regional Utility Service Systems Comm. -- $774,000 wastewater loan and grant package ($200,300 loan/ $573,700 grant). Funds will be used for the construction of a waste disposal system for the community of Martinsburg. The loan portion will have a 40-year repayment period at an interest rate of 4.5 percent.

City of Silver City -- $1,050,000 wastewater loan and grant package ($271,500 loan/ $778,500 grant). Funds will be used for the construction of a centralized wastewater collection and treatment system for the City of Silver City. The loan portion will have a 40-year repayment period at an interest rate of 4.5 percent.

Cedar Crest II Ltd., Charles City, Iowa -- $1 million rural rental housing loan. Funds will be used to construct an additional 24-unit elderly housing complex.

City of Crescent -- $604,000 wastewater loan and grant package ($225,000 loan/ $379,000 grant). Funds will be used to complete the city's wastewater collection and treatment system. The loan portion will have a 40-year repayment period at an interest rate of 4.75 percent.

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 the USDA's web site at http://www.rurdev.usda.gov .

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