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***United States Department of Agriculture -- Rural Development***

***World Wide Web: <http://www.rurdev.usda.gov/ca>***

***Paul Venosdel, State Director***

Release Immediate Contact: Bob Krauter

June 7, 2005 Work (530) 792-5803

> Cell (916) 681-1570

USDA RURAL DEVELOPMENT DELIVERS ECONOMIC BOOST

TO COACHELLA VALLEY COMMUNITIES

**June 7, 2005 -- Coachella, CA** -- In its continuing commitment to
rural businesses and community development, USDA Rural Development in
California today awarded more than \$870,000 in grants to spur job
growth and economic stability in Coachella Valley communities. Paul
Venosdel, State Director, USDA Rural Development, presented checks to
the Desert Alliance for Community Empowerment (DACE) and to the City of
Coachella to support five community projects.

"These funds for Coachella Valley show USDA's continuing commitment to
support businesses and community development in California's rural
areas," said Venosdel. "USDA Rural Development actively supports
President Bush's goals to create jobs and economic opportunity in rural
America. We are proud to partner with DACE and the City of Coachella to
help those who are working hard to help themselves."

USDA Secretary Mike Johanns said the grants, awarded nationwide, will
help a total of 83 applicants in 29 states to finance or develop small
and emerging businesses in rural areas. California has been a particular
focus of funds, which have strengthened the economic vitality of many
rural communities and small businesses.

"Small businesses are the backbone of our rural economy. Their
entrepreneurial spirit and commitment to their community is helping to
create jobs and bring economic stability to rural communities across our
nation,\" said Johanns.

Venosdel said DACE, under the leadership of Executive Director Jeff
Hays, has lead efforts to strengthen the economic fabric of Coachella
Valley communities.

"DACE is proud of this effective partnership with USDA Rural Development
as part of the Empowerment Zone Initiative," said Hays. "We are pleased
that these worthwhile community and business projects are getting the
help they need. With teamwork like this, good things happen."

Two types of business grant programs were highlighted in today's
presentations: Rural Business Enterprise Grants, which can be used for a
variety of purposes, including technical assistance, machinery and
equipment purchases, revolving loan fund creation and building
construction; and Rural Business Opportunity Grants, which can be used
to pay costs of providing economic planning for rural communities,
technical assistance for rural businesses, or training for rural
entrepreneurs or economic development officials.

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Venosdel presented checks to DACE for several community projects:

> **\$450,000 -- For development of a retail center in the community of
> Mecca, CA** that targets existing businesses that need code compliant
> facilities to operate and new businesses needed by the community;
>
> **\$200,000 -- For technical aspect of community planning** for
> sub-zones of the Desert Communities Empowerment Zone (DCEZ),
> specifically Mesa Verde, Thermal, Ripley and the Torres Martinez
> Reservation. Funds will help create 20 new jobs, save 300 jobs and
> assist 20 local businesses;
>
> **\$80,000 -- For development of Nana's Garden Market**, a food buying
> co-op to bring locally grown fresh produce to agencies that provide
> food and nutritional support to low income residents. Funds will help
> 10 businesses, create 17 new jobs and save 19 jobs;
>
> \$**20,100 -- Emergency response equipment for the Riverbend Volunteer
> Fire Company.** Funds will help provide fire, rescue and
> communications equipment for the company, which operates out of Fire
> Station #41.

An additional check was presented to the City of Coachella:

> \$**124,000 -- For renovation of a once vacant fire house that is now
> home to the Altura Credit Union**, which serves residents in Coachella
> and outlying DCEZ communities with financial management programs and
> fundamental banking services.

USDA Rural Development's Rural Business-Cooperative programs deliver a
variety of assistance to rural businesses and communities. The programs
work in financial partnership with local economic organizations,
including banks and lenders, economic development groups, universities,
cities, counties, tribes and utility cooperatives. More information on
rural programs is available <http://www.rurdev.usda.gov/ca>.

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> *Committed to the future of rural communities*