WASHINGTON- Senator Chuck Grassley today announced that the U.S. Department of Agriculture, Office of Rural Development has awarded grants totaling $1,335,190 to Iowa through the Rural Business Enterprise Grant Program and the Intermediary Relending Program.
“These funds will help create jobs for Iowans and stimulate economic growth in rural areas,” Grassley said.
The Intermediary Relending Program provides funds to finance business facilities and community development projects in rural areas. This is achieved through loans made by the agency to intermediaries that relend the funds to an ultimate recipient for business facilities or community development projects. A revolving loan fund is established, so that collections made by the intermediary on their ultimate recipient loans can be used for more loans to other recipients.
The Rural Business Enterprise Grant Program provides grants to public agencies, private non-profit corporations or Indian groups for needed infrastructure, to fund technical assistance needs and to establish or fund revolving loan programs for small and emerging private enterprises that have less that $1 million in revenues and fewer than 50 employees. The project must be located in an area of less than 50,000 in population.
The U.S. Department of Agriculture, Office of Rural Development has awarded funds to facilitate various projects, as described below.
v Butler County rural Electric Cooperative in Allison will receive a $300,000 grant through the Rural Business Enterprise Program to help construct a new 10,000 square foot medical clinic and purchase new medical equipment which will provide improved health care to residents of Chickasaw and surrounding counties which will create three jobs and save 124 jobs.
v Hawarden will receive a $70,500 grant through the Rural Business Enterprise Program to establish a revolving loan fund that will create eight jobs.
v Storm Lake Industrial Corporation in Storm Lake will receive a $400,000 loan through the Intermediary Relending Program to provide low-interest loans to public and non-profit organizations to relend for business and community development throughout Buena Vista County.
v Stuart will receive a $300,000 grant through the Rural Business Enterprise Program to establish a revolving loan fund which will help Project Restore Foundation renovate a former church into a new community and cultural center in Stuart which will create 13 jobs.
v Traer Municipal Utilities in Traer will receive a $264,690 grant through the Rural Business Enterprise Program to help Traer develop a 42 acre industrial park in order to promote economic development by building the infrastructure to create capacity for recruitment of new industry to the area. The project includes road improvements and utility extensions to service future industrial users of the development and extending water, sanitary sewer, and storm sewer service to the development.