Rural Development gave extra money last year thanks to federal funds
By Jean Caspers-Simmet
simmet@agrinews.com
Date Modified: 05/27/2010 9:33 AM
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CEDAR FALLS, Iowa —USDA Rural Development's investment in rural Iowa topped $605 million in 2009 thanks to additional funding through the American Recovery and Reinvestment Act and special federal funds targeted to helping Iowans recover from flooding and severe weather in 2008.
"Funds issued through our programs in 2009 helped create or retain more than 2,000 jobs in rural Iowa, aided 2,845 families in buying their own homes and assisted more than 140 rural Iowa communities in improving community facilities and upgrading local infrastructure," said Bill Menner, director of USDA Rural Development in Iowa.
Some highlights include a record 370 producers and businesses who received $35 million in loan guarantees and grants through the agency's Rural Energy for America Program. The program provides financial assistance to make energy-efficiency improvements on a farm or business, as well as install renewable energy systems such as wind turbines, geothermal and solar. Around 25 percent of the nation's REAP recipients were from Iowa for 2009.
A record 2,845 families received low-interest, no-down-payment mortgage loans from Rural Development in 2009, double the typical number thanks to available American Recovery and Reinvestment Act and disaster funds. The homes are in communities of 20,000 people or less.
During 2009, the agency assisted more than 140 communities with $198 million for community facilities and infrastructure, including more than $75 million in guaranteed loans, direct loans and grants issued through ARRA and disaster recovery funds.
Rural Development provided more than $15 million in guaranteed and direct loan funds to assist with renovation and expansion at Guttenberg Municipal Hospital.
Last month, U.S. Rep. Bruce Braley and Menner celebrated a $199,900 Rural Business Enterprise Grant from the American Recovery and Reinvestment Act that was awarded to Parkersburg Economic Development. The grant will help establish a revolving loan fund.
Parkersburg was devastated by an EF-5 tornado in 2008. More than 20 local businesses were destroyed. The fund help small- and emerging-business by offering an affordable financing option to rebuild and create new developments.
Also in 2008, Iowa rural electric cooperatives provided $725,000 from their USDA Rural Development-established revolving loans to Parkersburg to construct a building that now provides space for five businesses. Three businesses are currently operating in the building.
"Parkersburg is an incredible success story," Menner said. "Folks didn't leave, they stayed and rebuilt. It's nothing short of a miracle."
Arlington received a $200,000 USDA Rural Development grant to construct a new community center in 2010. Belmond Medical Center received a $21.6 million loan to renovate its hospital. Stacyville got a $100,000 grant to build a new fire station.
For 2009, the American Recovery and Reinvestment Act made a big impact in rural Iowa with nearly $125 million in loans and grants awarded through USDA Rural Development, Menner said. Another $115 million is available in 2010 through ARRA to assist rural businesses, communities and homeowners. Loan and grants will be available through September, or until all funds have been awarded.