Staff Writer
HOULTON — Virginia Manuel USDA’s rural development state director for Maine, said one year after the implementation of the American Recovery and Reinvestment Act, the impact of stimulus money has helped put people to work and helped them afford home ownership. According to Manuel’s office USDA Rural Development has invested $233 million of stimulus money in Maine communities.
Contributed Photo
VISITING FAMILY FARMS — Virginia Manuel, USDA’s director for rural development in Maine says the agency has invested $233 million of stimulus money in the state. Manuel recently attended meetings in Washington, DC with Agriculture Secretary Tom Vilsack, other USDA state directors, and senior White House staff on the anniversary of the stimulus legislation. “This money is available only until September 30 of 2010. We are doing everything we can to get stimulus money out the door into rural communities around Maine in housing, in our community facilities, in water and waste infrastructure projects and through our business and loan guarantees.”
Manual pointed to the USDA guarantee program for single families. “Absolutely it has helped where the bank is the lender and the USDA comes in with a 90 percent guarantee of that bank loan. So that banks, in this down housing market, are looking at us as their greatest security. If the homeowner defaults on the loan, USDA comes in with a 90 percent guarantee to cover the bank if the homeowner in the end cannot carry that mortgage.”
Unlike buyers who got caught up in risky loans they could not afford, Manuel said these homebuyers probably won’t leave taxpayers footing the bill. “We do a thorough check and they have to meet our requirements. As a result the delinquency rate for homeowners in Maine is very low. It’s below the national average. We have hugely responsible homeowners who come through our program and would not be able to purchase homes if we weren’t backing their loans with a guarantee. We have great homeowners in Aroostook County.”
Manuel said more than 2,600 homeowners have benefited from the program from FY 2009 through the first quarter of 2010. And, she said, USDA is financing one-fourth of all new purchases of homes in Maine. “It’s dramatic.”
Manuel also said “there was a great deal of talk in Washington about preserving family farms that are so critical to the economy.” She spoke about two programs that would be of special interest to farmers — Rural Energy for America Program (REAP) grants and the Value-Added Producer Grants (VAPG).
REAP grants help small businesses including farmers with grants and loan guarantees for investments in renewable energy systems, energy efficiency improvements and renewable energy feasibility studies. VAPG provides competitive grants to create or develop value-added producer-owned businesses.
Manuel said: “One year after efforts began, the impact of the American Recovery and Reinvestment Act funds is being felt in every corner of our state, through economic development and business assistance, job creation, preservation of essential community facilities, and homeownership assistance.”
In Fiscal Year 2009, USDA Rural Development invested over $420 million in the state of Maine. More information on USDA rural programs is at: http://www.rurdev.usda.gov/me.
