2 

Message from Secretary Mike Johanns 3 

Message from Under Secretary Thomas Dorr 4 

Message from State Director Gary H. Groves 5 

Statewide Highlights 6 & 7 

Northwestern Pennsylvania Highlights 8 & 9 

Southwestern Pennsylvania Highlights 10 & 11 

Northeastern Pennsylvania Highlights 12 & 13 

Southeastern Pennsylvania Highlights 14 & 15 

Special Events 16 & 17 

Other Programs 18 

USDA Rural Development—Pennsylvania Offices 19 

USDA Rural Development—Pennsylvania Offices Map 20 

PENNSYLVANIA 

Annual Report 

Fiscal Year 2006 

(Cover Photo: Keystone Biofuels, 

Shiremanstown, PA— see page 16)

www.rurdev.usda.gov/pa

Table of Contents 

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis 

of race, color, national origin, age, disability and where applicable, sex, marital status, familial status, parental 

status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual’s income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) 

Persons with disabilities who require alternative means for communication of program information (braille, large 

print, audiotape, etc.) should contact USDA’s TARGET Center at (202) 720-2600 (voice and TDD). To file a 

complaint of discrimination, write to USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., 

Washington, D. C. 20250-9410, or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider, employer, and lender.
3 

USDA Secretary Mike Johanns Agriculture Secretary 

Mike Johanns

In 2006, across this great nation, USDA Rural 

Development employees made a difference in the lives of 

virtually every person who calls rural America home. Whether 

it’s financing rural renewable energy projects, guaranteeing a 

loan for a new business, building or upgrading a rural hospital, 

construction of a new community center, laying water lines, 

remodeling apartments or drilling a well for a senior citizen 

living on a homestead, we’re building a more vibrant rural 

America. 

As I traveled across the country conducting Farm Bill 

Forums in preparation for the 2007 farm bill, I heard loud and 

clear the message of support for USDA’s rural development 

efforts. Out of hundreds of hours of discussion and thousands of comments, our rural 

development programs received nearly unanimous support. That is a vote of confidence in 

which the 6,300 men and women of USDA Rural Development can indeed be proud. 

Rural America today is changing. Its economy is diversifying. The broadband 

revolution erases barriers of time and distance. New industries like renewable energy and 

biobased products hold exciting potential for investment and growth. We are working hard to 

improve rural health care, schools, and other community facilities, to increase rural 

homeownership, and to support rural entrepreneurs. The opportunities and challenges vary 

from place to place, but one thing remains the same: the commitment of USDA Rural 

Development to the future of rural communities. 

This is a new era for America’s rural communities as evidenced by an amazing 

happening in St. Louis, Missouri in early October, when 1,350 leaders from agriculture, 

industry, and government gathered to explore ways to move renewable energy production to 

the next level. Three cabinet level officials, political leaders from all levels of government, 

business leaders, community representatives and the media listened as President Bush spoke, 

continuing his long standing support for development of renewable energy from America’s 

rural areas. The President is strongly committed to renewable energy development including 

production of fuel from cellulosic sources like switchgrass. USDA Rural Development plays a 

key role in these efforts, along with other USDA agencies, the Department of Energy, and other 

federal partners. Together, we are making a real difference. 

 

 We have accomplished much over the past year and we are eager to build upon those 

accomplishments by strengthening even further our rural communities. We remain committed 

to creating an environment where future generations will not only live, but thrive in rural 

America. As we enter 2007, the 50 million people who live in rural America are developing 

new opportunities in every area – and I am proud that USDA Rural Development will continue 

to be a partner in these efforts, as it has been for more than 70 years. 
4 

Agriculture Under Secretary for Rural Development 

Thomas Dorr 

For the employees of USDA Rural Development – and the millions 

of rural Americans they serve – 2006 was a year of achievement and 

progress. Whether it’s a new biodiesel plant, a medical clinic, 

energy efficient corn driers, a wind farm, broadband service or 

digital TV service for a public broadcasting station, USDA Rural 

Development is “connecting the assets” that we’ve provided to rural 

America. It’s a lot of money: $76.8 billion since the start of the Bush 

Administration. This investment represents Rural Development 

leading the way to a bright new future for Americans who choose to 

live in our rural communities and on our farms. Not only have we 

invested an average of $13 Billion a year over the last six years, (a 

35% increase over 1998-2000) but we’ve created or saved an 

estimated 1.5 million American jobs. 

America’s new fuel industry is rural, it’s diverse, it’s mainstream – and it’s growing fast. All 

across this great nation, entrepreneurs with the backing of a firm and reliable government energy policy, 

as outlined by President Bush, are making a contribution that expands America’s energy options. In 

doing so they are not only providing new sources of energy for our nation, but also creating a new path 

to wealth creation for rural America. In the past six years we’ve committed more than $482 million 

from our business and utilities programs to over 1,000 renewable energy ventures. 

We marked other milestones this year as well. In housing, Rural Development rolled out 

“GUS”, the Guaranteed Underwriting System, which will enable the lending community to get a fast 

and accurate answer when processing loan applications. We observed an important milestone in our 

popular “Self Help” housing program. Started in 1961, this program topped the 40,000 loan mark in 

2006, and the total dollar amount of mortgages made under the program topped $2 billion. We also 

began the process of revitalizing our multi-family housing portfolio. Late this year we announced that 

78 multi-family housing developments in 16 states have been selected for inclusion in a demonstration 

program designed to preserve and rehabilitate apartment complexes financed through USDA Rural 

Development. We also made about $617 million in loans and grants for Community Facilities projects 

including fire stations, public safety buildings, community halls, and emergency equipment. 

 

 We continued to support improvements to rural electric infrastructure and provided 

telecommunications loans, broadband loans and Community Connect broadband grants. We also 

provided hundreds of million of dollars in water and environmental loans and grants. We made over 

$766 million in business loan guarantees and provided over $35 million in funding to producers through 

the Value Added Producer Grant program. 

Every one of our employees is charged to work with rural communities to create new economic 

opportunity and improve the quality of life in rural America while increasing connectivity between rural 

development programs, to find ways to bring even greater service to our rural customers. 

Working in partnership, a rural renaissance is upon us. At Rural Development, we are 

committed to the future of rural communities. 
5 

Pennsylvania State Director 

Gary H. Groves 

USDA Rural Development – Pennsylvania had an 

outstanding fiscal year (FY) in 2006, achieving record 

numbers of investments to improve the quality of life for 

our rural communities and rural residents. We worked on 

a broad spectrum of projects which is a tribute to the labor 

and dedication of over 120 loyal Rural Development team 

members. Likewise, serving elsewhere, one of our Area 

Directors spent 60 days serving the victims of Hurricane 

Katrina and another spent six months serving in the military 

in the Middle East. Some of the accomplishments Rural 

Development provided were: 

• Funding to assist over 1,000 rural, eligible families become homeowners 

• Over $37 million to fund water and sewer projects in the Commonwealth 

• A new rural hospital wing and expansion and an expanded rural nursing home 

• The expansion of a Pennsylvania produced soybean based biodiesel plant 

• Numerous vehicles and facilities for local first responders 

• $55 million in Business and Industry guaranteed loans creating or saving hundreds 

of jobs, and 

• Funding several manure digesters to produce electricity from the methane 

 generated. 

With the support and leadership of President Bush, Secretary Johanns, and Under Secretary 

Dorr, we invested over $1.2 million every day into rural Pennsylvania. This would not be 

possible without our many partners working with us for a common objective to enhance the 

future of rural communities. 

We are optimistic about improving our program delivery in Housing, Community Facilities, 

Business & Industry, Broadband, and Renewable Energy as we begin the new year. As you 

review this report, you will see a sampling of projects funded by Rural Development in FY 

2006. We are working to improve our service to our rural customers, and our employees 

anxiously await the opportunity to help as we remain “Committed to the Future of Rural 

Communities.”
6 

COMMUNITY PROGRAMS: 

Water Waste 

 Direct Loans $24,618,100 

Grants 12,837,740 $37,455,840 

 

Community Facilities 

 Direct Loans 14,312,600 

 Guaranteed Loans 7,430,058 

 Grants 529,700 

 RCDI Grants 300,000 

 DLT Grants 1,231,611 23,663,969 

Telecommunication Loans 4,452,850

Electric Loans 40,500,000

RURAL BUSINESS & COOPERATIVE PROGRAMS: 

Guaranteed Business & Industry 55,870,000

Specialty Lending 

 Rural Business Opportunity Grants 50,000 

 Intermediary Relending Program 1,250,000 

 Rural Business Enterprise Grants 1,013,500 

Renewable Energy Grants 784,100 3,097,600

Cooperative Program 

Value Added Grants 261,901 

RCDG 225,000 486,901

Rural Development Council 14,242 

USDA-DOE Joint Biomass Research & Development Initiative 1,891,729

RURAL HOUSING PROGRAMS: 

Single Family 

 502 Direct 33,345,769 

 502 Guaranteed Loans 74,091,942 

 504 Repair Loans 1,324,194 

 504 Repair Grants 1,151,900 

 523 Mutual Self-Help Grant 558,192 110,471,997 

Multi-Family 

 533 Housing Preservation Grants 365,133 

 538 Guaranteed Loans 3,875,000 

 515 Loans 489,372 

 515 Rental Assistance 16,515,096 21,244,601 

TOTAL $299,289,729
7 

Community Programs: 

• Pennsylvania’s Community Programs obligated a total of $61,119,809 in loans and grants 

for Water and Environmental Programs and 

Community Facilities projects. 

• Funding will provide water or sewer service to over 

25,000 users in 23 rural communities and essential 

community facilities to 27 communities for 972,846 

residents in rural communities. The Community 

Facilities funding included 16 loans and 3 grants to 

first responders. 

• 89 percent of Community Facilities loans and grants 

were made to faith based and other community 

organizations with the majority of those being to first responders. 

• $40.5 million in loans to electric cooperatives were approved. 

Rural Housing Programs: 

• $74,091,942 represents the funding of 730 single family housing guaranteed loans assisting 

rural residents to become homeowners. 

• 313 single family direct loans were made in the 

amount of $33,345,769 to eligible, low-income rural 

homeowners. 

• Two Section 538 guaranteed multi-family housing 

loans in the amount of $3,875,000 were made to 

provide affordable rental housing for very low and 

low income families. 

Rural Business & Cooperative 

Programs: 

• $55,870,000 in Business & Industry guaranteed loans helped to create or preserve rural 

jobs across the state. 

• The Specialty Lending Program’s over $3 million 

provided funds for feasibility studies, renewable 

energy projects, farm anaerobic digesters (pictured) 

and more. The Cooperative Program added 

$486,901 in value-added and rural 

community development grants. 
8 

South Shore Farms 

With grape vineyards in the background, State Director 

Gary H. Groves is shown being televised following the 

ceremonial check presentation ceremony highlighting 

the $17,500 Value-Added Agriculture Product Market 

Development Grant (VADG) presented to Randolph 

H. Graham of South Shore Farms, Northeast, Erie Co. 

The grant funds will be used to develop a winery 

incubator to allow grape farmers to start small farm 

wineries. VADGs are made available to agricultural 

commodity producers who refine their products in 

order to increase the value of these products to 

customers. 

Human Services Center 

Human Services Center, a residential treatment facility located in New Castle, Lawrence 

County, will provide residential and outpatient mental health services to up to eight 

adolescents with mental health disorders. Renovations to the existing ‘farmhouse’ for on-site 

staff housing, cooking and various house maintenance functions and the new construction of a 

one-story building to house the adolescent residents are planned. Rural Development’s 

Community Facilities program helped fund the project with a $500,000 Community Facilities 

loan and a $100,000 grant. Community Facilities loans and grants and guaranteed loans help to 

develop essential community facilities in rural areas such as health care clinics, police and fire 

stations, schools, child care centers, etc. 

French Creek Valley Christian School 

A Rural Development $300,000 

Community Facilities loan and a grant 

of $100,000 helped French Creek Valley 

Christian School, a faith-based 

organization, in Saegertown, Crawford 

County, make needed repairs to the 

school’s roof , building and daycare 

center offering the opportunity for 

expansion of the capacity of the K—12 

grades as well as its daycare preschool. 

Through the Faith Based and 

Community Initiatives, USDA and ten 

other federal agencies can partner with 

faith based and community 

organizations to help provide vital 

assistance to those in need. Rural Development’s existing Community Facilities, Mutual 

Self-Help Housing and Rural Rental Housing programs, to name a few, are available. See 

www.usda.gov/fbci and www.fbci.usda.gov/form/ for more information on this initiative. 
9 

Bradford Regional Medical Center 

Bradford Regional Medical Center in Bradford, McKean County, received a $110,575 Distance 

Learning and Telemedicine Grant from Rural Development. 

The funds will be used to install telemedicine monitoring 

equipment at six senior citizen centers throughout the county. 

The user-friendly software will guide the patient by voice to 

collect all vital data that is transmitted to a central station via 

an internal modem with the capability to track and trend a 

patient’s condition. It is estimated that the monitors will be 

available to over 19,000 rural Pennsylvania residents. The Distance Learning and 

Telemedicine loan and grant program is designed to help meet rural America’s education and 

healthcare needs through the use of advanced telecommunications technologies. 

North Central Pa Regional Planning and Development Commission 

A $500,000 Intermediary Relending Program loan to North Central Pa Regional Planning and 

Development Commission by Rural Development will make funds available to support 

economic and community development and assist in the creation or saving of rural jobs in 

Cameron, Clearfield, Elk, Jefferson, McKean and Potter counties. North Central’s low-interest 

loan was part of a national announcement in June awarding funds to six organizations in five 

states totaling $4 million. USDA Rural Development’s Intermediary Relending Program lends 

funds to intermediaries, which provide loans to finance business facilities and 

community development projects in rural areas. 

502 Housing Loan Program 

A mom and two sons in Edinburg can now enjoy a new home (pictured right) replacing their 

raised, irrepairable former home (left) thanks to the 502 Direct Loan Program. Rural 

Development’s Section 502 loans are primarily used to help low-income individuals or 

households purchase homes in rural areas. Funds can be used to build, repair, renovate or 

relocate a home, or to purchase and prepare sites, including providing water and sewage 

facilities. Applicants may obtain 100% financing, and mortgage payments are based on the 

household’s adjusted annual income. 
10 

The Altoona-Blair County Development Corporation (ABCD) pictured, with a 50+ year history 

in providing economic development services to 

the Blair County business community, was 

awarded a $750,000 low interest loan. These 

funds from Rural Development’s Intermediary 

Relending Program will be used to provide low 

interest loans to commercial, industrial, services 

and technology-related businesses in Blair 

County. This loan fund, in turn, will help to 

create 41 new jobs and retain 75 jobs. ABCD 

previously received $500,000 for its 

Intermediary Relending Program in both 1999 

and 2004 and successfully lent out all of the funds to aid 14 businesses. 

Cresson Volunteer Fire Company 

Cresson Volunteer Fire 

Company received a 

Community Facilities Loan of 

$275,000 toward the purchase 

of a 2005 Crimson 100’ 

Tower Truck. The aerial truck 

was a vital piece of the 

community’s (Cresson 

Borough and surrounding 

townships in Cambria County) 

emergency planning and 

safety protection. The $675,000 project also received funding from the Pennsylvania 

Emergency Management Agency with the balance from the fire company. 

Central Mainline Sewer Authority 

The Central Mainline Sewer Authority’s $11.7 million sewer project to correct malfunctioning 

septic systems that created health hazards and sanitary problems was dedicated with a ribbon 

cutting ceremony in August in Lilly, Cambria County. The project was previously funded with 

a Rural Development loan of $4,054,350 and a grant of $5,296,900, $675,000 from the US 

Army Corps of Engineers and other monies. The project will serve 1,023 residential and 21 

non-residential users in the Boroughs of Cassandra and Lilly and portions of the Townships of 

Cresson, Portage and Washington. 

Altoona-Blair County Development Corporation 
11 

Your Child’s Place 

 

Rural Development provided a Community Facilities guaranteed loan of $3,000,000 to Your 

Child’s Place, Inc. of Washington, Washington County, an affiliate of United Cerebral Palsy of 

Southwestern Pennsylvania. The funds, along with monies from other sources, will help finance the purchase of an existing building and the need for substantial remodeling to create a 

facility that will provide child care to severely disabled children with special medical needs. 

The children will have the opportunity to take part in a quality, educationally based program 

with their peers and will allow many of the parents, 

who care for their children at home, to seek 

employment with the assurance that their children 

are receiving proper care. The facility will initially 

be able to accommodate between 15 and 20 children 

of ages between birth and about five years. It will 

be one of only three pediatric extended care programs in Pennsylvania with only a handful existing 

nationwide. Rural Development can guarantee loans 

made and serviced by lenders (up to 90 percent of 

any loss of interest or principal on the loan) for 

essential community facilities in rural areas. 

Multiple Family Housing 

Under the Guaranteed Rural Rental Housing Program (Section 538), Rural Development issued 

a Conditional Commitment to Hickory Meadow LLC for $1,750,000 in July and another to 

Crossroads Meadow LLC in October for $1,700,000. Construction has started on both of the 

properties, and it is anticipated they will be ready for occupancy in December, 2007. 

The 538 program provides credit enhancements to encourage private and public lenders to 

make new loans for affordable rental properties in eligible rural areas. The program is designed 

to provide housing for low- or moderate-income families or individuals whose incomes at 

initial occupancy do not exceed 115% of the area median income (AMI), adjusted for family 

size. Monthly rent for a unit may 

not exceed 30% of 115% of the 

AMI. 

Pictured is an architectural 

drawing of the 538 multi-family 

housing project that is one of two 

that were approved in FY 2006. 

Hickory Meadows is in White 

Township near Indiana, Indiana 

County and Crossroads Meadows 

is in Ebensburg, Cambria County.
12 

Schuylkill Township 

State Director Groves is pictured addressing the audience at a 

ceremonial check presentation ceremony held to highlight 

Rural Development’s Community Facilities loan of $400,000 

to the Schuylkill Township Supervisors. The monies will be 

used to repair an approximate 13-mile radius of township 

roads in the Mary-D, Tuscarora and Brockton areas in 

Schuylkill County. Surface deterioration, caused by inclement 

weather and the recent installation of necessary water and 

sewer lines as well as poor drainage, will be addressed by the 

new bituminous service overlay that will be applied. 

Franklin Township Volunteer Fire Department 

Franklin Township Volunteer Fire Department will have a new 2006 equipped mini pumper 

fire truck (pictured being built) with 

the help of a $156,000 

Community Facilities loan from 

USDA Rural Development. It should 

be ready for delivery in early 2007. 

The loan also helped refinance the 

debt on an existing fire truck. The 

Franklin Township Volunteer Fire 

Department provides first responder 

services to the Townships of Franklin 

and part of Burlington in Bradford 

County. Also pictured is the Franklin 

Twp. Vol. Fire Dept 22 station that 

will house the new truck. 

Communications centers, police and 

fire stations, fire trucks, rescue 

vehicles and jails are examples of public safety 

projects that may be funded through Community 

Facilities loans, guaranteed loans and grants. 

ARC of Northumberland County 

ARC of Northumberland County received a $99,500 

Rural Business Enterprise Grant from Rural 

Development towards a project that will create an electronic recycling center that provides a 

setting for annual training of 12 to 16 persons with developmental disabilities. They will learn 

how to work on dismantling and recovering parts from donated electronics so that they can be 

resold. The training, in a regular job environment, will prepare the trainees for future 

employment opportunities. 
13 

Guaranteed Housing Program 

A family in Roseto, Northampton County, 

whose home was financed by Rural 

Development’s guaranteed home loan 

program, hosted a ceremony to recognize 

National Homeownership Month and the 

partners who made their dream of 

homeownership possible. The homeowners’ 

lender, Garry Seidel of Countrywide Home 

Loans and realtor, Spirit Tutzler of Patt White, 

GMAC Real Estate, who received a Certificate 

of Appreciation from USDA Rural 

Development, joined representatives of USDA 

Rural Development and others on the front lawn of the family’s new home (pictured) to 

highlight the partnership that made it all possible. 

USDA Rural Development guaranteed loans are available to qualified, rural applicants/

homeowners-to-be. These are loans made by other lenders, such as banks or credit unions, and 

are guaranteed by Rural Development. They are loans where borrowers are unable to secure 

the necessary credit without a guarantee. No down payment or monthly private mortgage 

insurance charges are required, and applicants may borrow up to 100% of the appraised value 

of the property plus the 2% guarantee fee. 

Hallstead Great Bend Joint Sewer Authority 

State Director Groves (third 

from left) met with members 

of the Hallstead Great Bend 

Joint Sewer Authority’s 

Board (pictured), 

Susquehanna County, and 

others in a ceremonial check 

presentation highlighting 

the $2.8 million loan to 

rehabilitate the present 

sewage treatment plant and 

two pump station sites 

servicing Hallstead 

Borough, Great Bend 

Borough and Great Bend Township. USDA Rural Development’s Water and Environmental 

programs provide loans, grants and loan guarantees for drinking water, sanitary sewer, solid 

waste and storm drainage facilities in rural areas and cities and towns of 10,000 or less. 
14 

Coatesville Health Development Corporation 

Coatesville Health Development Corporation 

received a $3,000,000 Community Facilities 

loan from USDA Rural Development to help 

fund the construction of the Brandywine Health 

and Housing Center that will serve the 

uninsured and underinsured residents and 

families in the Coatesville (Chester County) 

community with medical and dental needs, 

supportive services and 24 senior housing units. 

Section 9006 Renewable Energy and Energy Efficiency Grant Recipients 

The 9006 grant recipients in Pennsylvania were announced in August in Mt. Joy. Brubaker 

Farms, a recipient of a $223,249 grant hosted the event. The other recipients included Reinford 

Farms of Mifflintown, Juniata County ($203,600) and Bortnick Dairy of Conneautville, 

Crawford County ($357,251). 

Section 9006 Renewable Energy and 

Energy Efficiency Grants fund projects 

that, through improvements to a facility or 

process, reduce energy consumption. 

The monies to the above recipients will be 

used to construct anaerobic digester 

systems that will produce KWHs of 

energy utilizing the farm’s manure to 

increase farm revenue by optimizing the 

recovery and use of the resulting energy. 

Pictured is the audience gathered for the 

event including in the foreground Dane 

Bowerman, Business Program Specialist 

Director.

(right) and next to him, Vince Murphy, Rural Business & Cooperative Program 

USDA Rural Development also provided a $1.5 

million loan guarantee. Pictured at the site is 

Rural Development’s State Director Groves, 

Housing Administrator, Russ Davis, and Rural 

Development Manager, Sue Gantz . 
15 

Apple Valley Creamery 

The owners of Apple Valley Creamery 

operate a 50 cow dairy farm near East 

Berlin, Adams County. Most of the milk is 

shipped to a large dairy cooperative. The 

owners wanted to expand the farm’s 

operation to include a processing plant and 

retail store. Rural Development’s 

Value-Added Producer Grant (VADG) of 

$110,894 for working capital costs helped 

get the project started. The creamery will 

pasteurize raw milk from grass fed cows 

into different levels of fat content and also 

flavored milk products for direct sale to the 

public, including butter and a drinkable 

yogurt. A ceremonial check presentation was held in the fall of 2006 to highlight this project 

and two other VADG recipients—Pennsylvania 

Independent Poultry Producers of Duncannon ($25,000) 

and Pennsylvania Beef Council of Middletown ($20,000). 

The Keystone Development Center, Inc. of York was also 

recognized (see photo at right) for receiving a $225,000 

Rural Cooperative Development Grant to assist rural 

businesses and farmers in developing cooperative business 

ventures. Pictured are Rural Development’s State Director 

Groves and Business Programs Administrator Jackie 

Gleason (center) with members of the Center’s Board. 

Dauphin Borough 

Dauphin Borough, Dauphin County received a $2,353,000 loan from 

USDA Rural Development to upgrade and expand its sewer system. 

The multi-faceted project included sewer extensions, a sewer collection 

system, a new pump station outside of the flood plain to replace the 

existing malfunctioning 45 year old pump station, newer and larger 

diameter force mains, wastewater treatment facility equipment 

replacement as well as repairs to some existing sewer lines that carry 

substantial amounts of inflow. The project was featured in an event to 

commemorate the 36th anniversary of Earth Day highlighting Rural 

Development’s commitment to the environmental stewardship that was 

formed with the first Earth Day.
16 

Broadband Conference 

Rural Development was a 

co-sponsor of a free Broadband 

Conference in February at 

Clarion University, Clarion County. Over 100 

registrants heard presentations from Rural Development 

Broadband specialists in Washington and western 

Pennsylvania’s General Field Representative Ron 

Mellon, pictured left. Pictured above is Chari Sowash, 

for Bradford Regional Medical Center, recipient of a 

$110,575 Distance Telemedicine Grant who also spoke (see page 7) . For more information on 

Broadband, see http://www.usda.gov/rus/telecom/

Renewable Energy Conference 

In June, Rural Development co-sponsored a free 

Renewable Energy Conference in Harrisburg. Over 200 

attendees (pictured below left) heard speakers on the 

subjects of geothermal and anaerobic digester systems, 

biodiesel fuels and agriculture economics. One of the 

speakers was Race Miner of Keystone Biofuels who 

spoke about his experiences with the start up of the 

biodiesel production plant (pictured below right and on 

the cover). Rural Development provided a $5 million 

business and industry loan guarantee for the project. 

Thomas Dorr, USDA Rural Development Under 

Secretary (pictured left) was the keynote speaker. Mr. 

Dorr and State Director Groves presented a $99,300 

Rural Business Enterprise Grant ceremonial check to 

Southern Alleghenies Conservancy, Inc. of Bedford to 

complete a feasibility study for the development of a biofuels plant in the Southern Alleghenies 

region. For more information on Renewable Energy, see: http://www.rurdev.usda.gov/rbs/

farmbill/index.html
17 

National Homeownership Month 

National 

Homeownership 

Month was 

celebrated with a 

ceremonial check 

presentation and 

agreement 

signing 

ceremony (left) 

in Shippensburg, Cumberland County with Interfaith 

Housing, a nonprofit organization, that received a $558,192 

Self-Help grant to provide technical assistance to 21 

families working together to build their own homes. 

Pictured above is one of the new homeowners-to-be, Leila 

Reese, who spoke to the gathering. Pictured seated signing 

the agreement is Tom Dorr, USDA Rural Development 

Under Secretary who participated in the event. Another 

event pictures (opposite) Rural Development employees 

volunteering a day-long sweat equity contribution to two 

families helping to get their homes under roof in 

Fairchance, Fayette County. Threshold Housing 

Development Corp, who previously received a technical 

assistance grant from Rural Development, oversees the 

construction of the homes. Self-Help Housing loans help 

groups of 6 to 10 low-income families build their own 

homes by providing materials and the skilled labor they 

cannot furnish themselves. The families must agree to 

work together until all homes are finished. Self-Help 

works in combination with a grant program to nonprofit organizations and the direct single family 

lending program (although other home financing sources can be used.) The nonprofits help the families 

build their houses by providing technical assistance. 

Earth Day 

Earth Day 2006 was celebrated with the announcement in 

McClellandtown by the Utilities Program Administrator Jim 

Andrew of the $3,145,000 loan and $4,800,000 grant to the 

German Township Sewer Authority. The monies will be used to 

construct wastewater collection, conveyance, pumping and 

treatment facilities to serve approximately 477 residential and 

commercial users in the Edenborn and McClellandtown areas of 

German Township, Fayette County which is Phase 1 of the project. 

The area’s numerous malfunctioning on-lot systems and untreated 

or improperly treated sewage helped contribute to intolerable 

conditions. This assistance is a great example of Rural 

Development’s mission to increase economic opportunity and 

improve the quality of life in rural communities.
18 

USDA Rural Development’s Commitment to the Environment 

The National Environmental Policy Act (NEPA) establishes the federal government’s 

environmental policies. Its primary goal is to help public officials make decisions that are 

based on an understanding of the environmental consequences of their actions, and to take 

actions that protect, restore and enhance the environment. 

To accomplish this, USDA Rural Development requires its applicants and borrowers to 

consider environmental impacts before taking actions financed by the Agency. The same is 

true for private lenders whose loans are guaranteed by the Agency. Before any USDA Rural 

Development assistance may be approved, the Agency will assess the environmental impact of 

the proposed action to ensure that steps are taken to avoid or reduce adverse effects. 

Rural Business & Cooperative Program 

The Business & Industry loan program guaranteed $55,870,000 in loans to 23 rural businesses 

to help create or save approximately 1,200 jobs. Additionally, the Specialty Lending 

program’s two Intermediary Relending Program loans further assisted rural businesses, and 

eleven Rural Business Enterprise Grants to public bodies and non-profit corporations also 

helped small and emerging businesses. A $50,000 Rural Business Opportunity Grant was 

received by Tioga County Development Corporation for technical assistance and planning 

activities to improve economic conditions. The Cooperative Program provided organizational 

and financial development and resource identification technical assistance to five cooperatives 

and four groups desiring to be cooperatives in Pennsylvania in 2006. Work continued with 

partner agencies and organizations, including the Keystone Development Center, Resource 

Conservation and Development Councils, Penn State Cooperative Extension Service and the 

Pennsylvania Department of Agriculture. 

Faith Based and Community Initiatives 

In February, the White House Office of Faith Based and Community Initiatives (FBCI) and the 

Departments of Justice, Commerce, Agriculture, Labor, Veterans Affairs, Health & Human 

Services, Housing & Urban Development, Education, Agency for International Development 

and the Small Business Administration held a targeted free workshop in Harrisburg attended 

by hundreds of representatives from social service groups. The workshop provided an 

explanation of FBCI and the Equal Treatment Rule, guidance on partnering with the federal 

government, grant writing tutorials, opportunity to network with federal agencies with FBCI 

programs, etc. The workshop is part of a series of regional conferences and targeted workshops 

that are being held around the country. For more information: http://www.usda.gov/fbci

Civil Rights 

Assuring equal opportunity in employment and program delivery is essential in administering 

USDA Rural Development programs. Each USDA Rural Development employee is 

responsible for ensuring the highest quality of services for all recipients and beneficiaries of our 

programs. USDA Rural Development is committed to fair and equal treatment to employees 

and customers. 
19 

Pennsylvania State Office 

Gary H. Groves, State Director 

One Credit Union Place, Suite 330 

Harrisburg, PA 17110-2996 

711 or 1-800-654-5984 (Hearing Impaired)

(717) 237-2299 

www.rurdev.usda.gov/pa 

Northwest Area Office, Area 1 

Robert Schoenfeldt, Area Director 

(814) 336-6155, ext. 114 

Crawford Local Office, Area 1

14699 N. Main Street Extension 

Meadville, PA 16335-9441 

(814) 336-6155 ext. 4 

Clinton Local Office, Area 1

216 Spring Run Road, Room 103 

Mill Hall, PA 17751-9543 

(570) 726-3196, ext. 4 

Southwest Area Office, Area 2 

Lambert Rosenbaum, Area Director 

(724) 482-4800, ext. 116 

Butler Local Office, Area 2

625 Evans City Road, Suite 101 

Butler, PA 16001-8728 

(724) 482-4800, ext. 4 

Westmoreland Local Office, Area 2

226 Donohoe Road, Suite 1 

Greensburg, PA 15601-6987 

(724) 853-5555 ext. 4 

Northeast Area Office, Area 3 

Jack Kauffman, Area Director 

(610) 791-9810, ext. 111 

Lehigh Local Office, Area 3

2211 Mack Blvd. 

Allentown, PA 18103-5623 

(610) 791-9810, ext. 4 

Lycoming Local Office, Area 3

542 County Farm Road, Suite 205 

Montoursville, PA 17754-9209 

(570) 433-3006 ext. 4 

Wyoming Local Office, Area 3

One Hollowcrest Complex 

Tunkhannock, PA 18657-6632 

(570) 836-5111 ext. 4 

Southeast Area Office, Area 4 

George Klaus, Area Director 

(717) 755-2966, ext. 125 

Juniata Local Office, Area 4

R. R. #5, Box 35 

Stoney Creek Drive 

Mifflintown, PA 17059-9533 

(717) 436-8953, ext. 4 

York Local Office, Area 4

124 Pleasant Acres Road 

York, PA 17402-8988 

(717) 755-2966, ext. 4 

Lebanon Local Office, Area 4 

2120 Cornwall Road, Suite 7 

Lebanon, PA 17042-9790 

(717) 272-3908 ext. 6 
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INDIANA

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WARREN

BUTLER

LUZERNE

SOMERSET

CLEARFIELD

BLAIR

FAYETTE

CRAWFORD

LANCASTER

PERRY

CHESTER

MERCER

FRANKLIN

CAMBRIA

ADAMS

GREENE

VENANGO

CLARION

HUNTINGDON

SCHUYLKILL

WASHINGTON

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WESTMORELAND

JEFFERSON

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USDA Rural Development

Pennsylvania Offices

Crawford Local Office

14699 N. Main St. Extension

Meadville, PA 16335-9441

(814) 336-6155 EXT. 4

Lehigh Local Office

2211 Mack Blvd.

Allentown, PA 18103-5623

(610) 791-9810 EXT. 4

Lycoming Local Office

542 County Farm Rd., Suite 205

Montoursville, PA 17754-9209

(570) 433-3006 EXT. 4

Wyoming Local Office

One Hollowcrest Complex

Tunkhannock, PA 18657-6632

(570) 836-5111 EXT. 4

York Local Office

124 Pleasant Acres Rd.

York, PA 17402-8988

(717) 755-2966 EXT. 4

Clinton Local Office

216 Spring Run Rd., RM 103

Mill Hall, PA 17751-9543

(570) 726-3196 EXT. 4

Butler Local Office

625 Evans City Rd., Suite 101

Butler, PA 16001-8704

(724) 482-4800 EXT. 4

Pennsylvania State Office - One Credit Union Pl., Suite 330 - Harrisburg, PA 17110 - (717) 237-2299 TTY/TDD & Voice: 711 or TTY/TDD Only: 800-664-59

Westmoreland Local Office

226 Donohoe Rd., Suite 1

Greensburg, PA 15601-6987

(724) 853-5555 EXT. 4

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