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Release No. 0339.02

> Alisa Harrison (202) 720-4623
>
> Taylor Oldroyd (202) 720-1019

**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.

#### Quad County Corn Processors Cooperative - Galva, Iowa \-- \$500,000 value-added grant. Funds will be used to establish a working capital account for the 18-million gallon ethanol facility. 

-more-

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**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.

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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](http://www.rurdev.usda.gov/).

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