Rural economic development funding available

By Natalie Bazinet
Staff Writer
    BANGOR – USDA Rural Development is accepting applications for loans and grants to support rural communities and spur economic development through the Rural Economic Development Loan and Grant Program. Approximately $45.8 million is available in this program.
    “This program supports small businesses, creates jobs, and spurs economic growth in rural communities, providing the opportunity for a better quality of life for Maine residents,” said USDA Rural Development Acting State Director Valarie C. Flanders.
    The Rural Economic Development Loan and Grant Program provides no-interest loans to Rural Development utility program borrowers, which re-lend the money to local entities to promote economic development and job creation.
    According to Mike Grondin, business programs director for the USDA Rural Development, Rural Development utility program borrowers include rural electric or telephone companies.
    “This program is just another tool that the USDA Rural Development has to help small businesses in rural areas,” said Grondin. “This program is one of about 40 programs of this nature that we have.”
    In a recent announcement, Rural Development reported that $14.2 million in loans and $3.9 million in grants has been awarded to a total of 27 applicants through this program. A list of recipients can be found at http://www.rurdev.usda.gov.
    Applications must be received by March 31 for third quarter funding and June 30 for fourth quarter funding.  For further details about eligibility rules and application procedures, see the December 29, 2008, Federal Register, page 79438.
    USDA Rural Development’s mission is to increase economic opportunity and improve the quality of life for rural residents. Rural Development has invested nearly $111 billion since 2001 for equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. More than two million jobs have been created or saved through these investments.
    “This program has been around for a long time, since back in the Tennessee Valley days,” said Grondin. “This program was primarily used in places that have small rural utilities, and we do have about eight or 10 of them in the state of Maine.”
    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/me.