Business Programs

Business & Industry Loan Guar. $17,402,505

Business Enterprise Grants $411,050

Business Opportunity Grants $370,000

Value Added Producer Grants $1,503,110

Section 9006 Energy Grants $18,685

TOTAL $19,705,350

Community Programs

Water & Waste Loans $20,258,000

Water & Waste Grants $5,319,000

Pre-Development 

 Planning Grants $4,000

Emergency Community Water

 Assistance Grant $500,000

Native American Set Aside 

 Grants $1,703,700

Community Facilities (CF) $7,493,000

 includes direct loans ,

 guaranteed loans & grants

RCDI Grants $300,000

TOTAL $35,577,700 

Housing Programs

Single-Family Housing $61,570,263

 including Direct & Guaranteed

 loans and grants 

Mutual Self-help Housing Grant $367,200

Housing repairs inc. over $588,116

 $ 295,049 in grant funds

Farm Labor Housing Loan $350,000

Farm Labor Housing Grant $2,646,284

Rural Rental Programs $8,188,418

Multi-Family Guaranteed Loan $776,570

TOTAL $74,486,851 

Avery Water Receives Emergency Assistance

During the spring of 2005, coliform and e-coli bacterial contamination was discovered in the town of Avery’s water supply 

well, posing a threat to the city’s health and safety. Officials at the Idaho Department of Environmental Quality (DEQ) 

determined that sewage contaminated groundwater from local septic tank drainfields was being flushed into the well’s 

shallow aquifer during heavy rainfall events. Despite (and possibly because of) its remote location in the north central Idaho 

mountains along the St. Joe River, the unincorporated town of Avery is an important hub for such recreational activities as fly 

fishing, kayaking, and biking the Hiawatha Trail. The Avery Water & Sewer District needed to act fast in order to protect its 

citizens’ water supply and its vital recreation industry.

 They did so by hiring the engineering firm of Welch Comer & Associates to determine the best course of action for solving 

the problem which included applying for an Emergency Community Water Assistance Grant (ECWAG) through USDA Rural 

Development. Rural Development was able to assist by processing and approving an ECWAG grant in the amount of $500,000 

as well as a direct loan of $175,000 and a regular grant of $100,000 to provide Avery Water & Sewer with the necessary funding 

to take corrective action. In addition to the above, the Idaho Department of Commerce provided Avery W&S with a $100,000 

Imminent Threat Grant to develop the new well.

See Avery on back page.

Cambridge Opens Assisted Living Facility 

When the new Upper Country Elder Care Assisted Living Center 

(now officially named “Salubria Center”) held theIr ribbon cutting 

ceremony the theme was “Miracles Do Happen.” Upper Country 

Eldercare Coalition Executive Director, Jennifer Neider chose this fitting 

theme to illustrate and celebrate the fruition of her vision that began more 

than a decade ago. Thanks to her concerted fund raising efforts and 

those of several others, the coalition was able to raise over $500,000 in 

matching funds through donations from charitable foundations and many 

generous individuals. 

 Rural Development was there almost from the beginning, when the 

City was approved for an RBEG to fund a feasibility study. Since then 

USDA RD has provided $500,000 and $100,000 respectively in direct and 

guaranteed loans, a $68,000 CF grant, and an second RBEG grant to help 

purchase furniture. Other funding from a CDBG and a Gem Grant by the 

Idaho Dept. of Commerce also helped make this dream come true.

 With the funding in place the Coalition selected an experienced designer, 

architect Dave Davies, to complete the design and to coordinate the 

bidding, award and oversight during construction. The construction was 

performed via two contracts. The off site work was completed by Braun 

Jensen, Inc. at a contract price of $104,890 and Primary Construction, 

Inc. was awarded the on-site building contract at a price of $855,778. 

The Coalition is very pleased with the design which features heavy 

New Building for Taylor’s Crossing Public Charter School 

The students and faculty of Taylor’s Crossing Public Charter School (TCPCS) will soon have a new building. Rural 

Development staff’s efforts have assisted in making the project possible by guaranteeing a $2,455,000 loan from 

US Bank and approving a $1,675,000 Direct Loan for the charter school. The facility opened in the fall of 2006 and 

currently utilizes several portable building units to house the school’s students. The new building will eliminate the portable 

units and bring the students together in one location.

 The design of the new 39,000 square foot building is an excellent example of efficient utilization of floor space. The 

building will feature a common area to support individual and group learning, a library next to the lunch room and a centrally 

located gymnasium to promote easy access for fitness. Fifteen thousand square feet of classroom space will be dedicated 

to 12 new elementary classrooms, while 6 classrooms are included for the high school side of the building.

Perseverance Pays Dividends

Corey and Mellisa Jeppesen came to see USDA SFH Specialist, 

Michelle Noordam one day on a whim and a prayer. They had been 

living in their existing manufactured home in a local mobile home 

park and were thinking about upgrading. Corey had his doubts but Mellisa 

had a goal of homeownership so Corey agreed to look into the possibility. 

They walked into Michelle’s office with a look-and-see attitude. 

 After reviewing their financial status, it was determined that they could 

buy a home if they took care of old negative credit that Corey had been 

working to erase. Corey walked out of the office inspired and Mellisa 

walked out smiling. They worked on things and kept Michelle updated. 

 In time they made application with USDA Rural Development and picked 

out a new home in Post Falls. The application was not their only news 

however. Mellisa was expecting a baby and now their dreams were really 

starting to take shape. Corey had established his dream career, had 

married the love of his life, bought a new home to shelter their family and 

now their first child was on the way.

 Michelle met with them as they moved in , “I have never seen a happier 

No More Chopping Wood

Lucille and Don Manos heard about USDA Rural Development’s Section 504 

repair loan and grant program from their daughter. The Manos’ had built 

their home overlooking the Marsh Creek Valley by themselves in 1968 and 

have always been hardworking, self-reliant people. Last winter it was very difficult 

for Lucille to chop and carry the wood required to keep their woodstove going. Don is 

severely crippled with arthritis, and helping with chopping and hauling wood is impossible for him now. 

 Lucille and Don’s roof was also missing some shingles and had begun leaking. The Manos’ had 

managed to save $500.00 for the installation of a furnace and roof repair even though health care, 

health insurance, and living expenses require all of their fixed income. But that was not nearly enough 

and the repairs had to be done before another winter set in. They decided to follow their daughter’s 

advice and came to the Blackfoot Office where they applied for and received a $7,500.00 504 Grant. 

River View Apartments - “A Good Example of Rural Development 

Working Hard to Help ‘Guarantee’ Growth

The City of Burley has been very successful in diversifying their local economy by drawing several new businesses to the 

area. However, city planners soon realized that for the growth to continue, housing was going to be a very important factor. 

They had plans to add housing, but the question was “how to get things started”?

 Desert Ridge Capital Group came to Burley to build housing. They soon realized that help was needed in order to succeed. 

The two groups met and a partnership was created which utilized the MFH 538 loan guarantee loan program. This guarantee, 

along with other funding sources, led to a beautiful new complex known as River View Apartments. (See photos on front cover)

 River View Apartments is a 40 unit apartment complex comprised of 5 buildings, with 8 units in each building. The buildings 

are located in a ‘star’ pattern with a large playground in the middle of the complex. Covered parking is provided for each unit, 

plus public laundry facilities and a community room. The units are either two or three bedroom and all have washer and dryer 

hook-ups, patios, and energy efficient heating and cooling.

 From the day construction started, the city has taken great interest in the project. Many local residents have visited the site. 

At the open house celebration, Mayor John Anderson of Burley spoke about the enthusiastic response residents gave to the 

project. He also noted that the project compliments the city’s future growth plans. River View Apartments will have a positive 

impact on the community by improving the entrance to the community and drawing business to the region. It is a good example 

of how Rural Development is partnering and working hard everyday to help ‘guarantee’ growth in rural America.

 Lucille and Don were able to find contractors to install a new propane furnace and ducting system to heat their home, and reshingle the roof. The new heating system helps Don with his arthritis pain; and Lucille no longer has to wield the ax and fight the 

wind and snow to keep the woodstove burning. 

couple” she said. “It is such a joy to help folks 

like the Jeppesen’s get a good start on their new 

life together.” On moving day the Jeppesen’s told 

Michelle, “Thank you so much for this opportunity.” 

“We love our new home.”

 Through the single family housing program 

offered by Rural Development, the Jeppesen’s 

accomplished the dream of homeownership. Now 

they have a place to raise their children and watch 

them grow. 

timber columns at the main 

entrance and interior, and a 

large fire place in the living/dining area. It also includes a beauty salon in 

the building.

 Built at a construction cost of approximately $1.06 Million, the 15-bed 

facility is a welcome addition to the community of Cambridge and will serve 

to fill a need that has grown significantly over the past several years.

 Before its construction, elderly residents were forced to move out of 

town to Weiser or Payette to find assisted living care. Now, with this 

long awaited “miracle” complete, Cambridge’s seniors should have a 

comfortable option for assisted living care for many years to come. 

 

B&I Loan Guarantee – 

We Help You Put Your Deal Together!

Dr. Kevin Johnson, DDS, a 1996 graduate of the University of 

Washington, started his dental practice in Sandpoint, Idaho, in 

1997, when he purchased a long standing practice. Operating 

as Sandpoint Family Dentistry, Dr. Johnson has developed an excellent 

reputation in the community, and has seen his practice increase steadily 

over these 10 years. However, the potential for his practice to grow was 

severely limited by the size of the building in which he was operating, and 

Dr. Johnston was concerned that he was having to turn away patients 

simply because he did not have enough space. Seeing the opportunity to 

expand his business and serve more customers. Dr. Johnson developed a 

business plan to build a new dental office building in Sandpoint.

 John Lynn, VP/Small Business Lending, with Mountain West Bank in 

Coeur d’Alene, had been working with Dr. Johnson and was excited about 

the potential for this project to achieve Dr. Johnson’s goals. Recognizing the 

possibilities for Dr. Johnson’s practice, Mr. Lynn developed a construction 

and term loan funding package to meet his needs. The challenge: to 

maximize the cash-flow for this business, Dr. Johnson needed a longer loan 

term than the Bank would typically be able to do, and the Bank was having 

a hard time finding the right program to help them complete the funding 

package. Utilizing the B&I Loan Guarantee Program, the Bank was able to 

put this deal together and provide a 30-year term. 

 Dr. Johnson has indicated that his dental practice activity is already up 

25% since relocation. With the increase in business, he proposes to add 

three new employees. 

 The Bank, taking advantage of another unique feature of the B&I 

program (the active secondary market where investors are eagerly seeking 

opportunities to purchase the B&I guarantee), cannily negotiated a sale of 

the guarantee, resulting in a high premium to the Bank and outstanding 

returns. Truly, this project has been a “win-win” for everyone!

 John Lynn, VP/Small Business Lending, with Mountain West Bank in Coeur d’Alene, had this to say about the program:

 “The process was easy, Margaret (Margaret Hair, Rural Development Business Program Specialist in our Coeur d’Alene office) 

was there to answer my questions and hand-hold me through my initial loan package. We were amazed at the premium income 

and servicing fees the Bank received from the secondary market.”

Value Added Producer Grant: Naturally, It Makes a Difference!

First established in 2001 by Cory and Aimee Doggett, Golden Reserve Beef (GRB) was a successful company that sold their 

own naturally-produced beef directly to the public. GRB had established a reputation for a high quality product produced 

with honesty and integrity.

 The company had been successful to-date, had added additional beef producers, and had built a customer base for their product 

of over 2000 individual customers. When media coverage of the animal health issues highlighting consumers’ demands for beef 

that is produced naturally or organically, with safety measures that allow for the tracking of the cow from birth to processing (all of 

which GRB had always done), GRB felt that there was an opportunity to build their company. They began by hiring a consultant to 

complete a feasibility study to explore this opportunity. The study’s conclusion: To seize the opportunity.

 With the help of a VAPG Working Capital grant, along with GRB’s investment of cash, product, and in-kind contributions, GRB 

has developed a program which includes a marketing campaign to promote the company and its products, the purchasing of 

packaging materials to support the brand, and implementation of their strategy to increase their customer base through widespread 

distribution and sales. 

 Todd Webb, one of 6 Owner-Producers of Golden Reserve Beef, had the following comments: “Prior to the Value Added Working 

Capital Grant, we struggled to make ends meet. The grant has allowed us to increase our marketing efforts, which has already 

resulted in an increase in sales and an increase in revenue to the producers involved.”

Lathe Gives Students Skills That are in High Demand

Lewis-Clark State College was able to purchase a $25,000 CNC lathe with the help of a USDA Rural Business Enterprise Grant 

(RBEG). The grant covered approximately 80 percent of the cost of the lathe which is Computer Numerically Controlled (CNC). 

 The CNC lathe is used for automatically producing any round shaped part such as punches for punch press 

machines, ball bearings for automobiles, nozzles for hot tubs, and/or any round part that has threads on it such as a bolt.

 Associate Professor Rob McDonald says. “The new lathe benefits our programs by allowing us to train the next generation 

of students interested in machining parts (manufacturing). There is a huge need for anyone interested in building things.” 

 “The local manufacturers were overjoyed to hear that we had gotten the grant and look forward to hiring our students 

as soon as they are trained.” “One of my students even got a job offer as soon as the employer found out that he 

was interested in CNC machining, even though he didn’t know how to run it yet. I like to see that kind of enthusiasm.”

“You can’t 

imagine how 

much I appreciate what 

you’ve done for us, It’s 

wonderfull.”

Heavy timber columns at 

the main entrance and large 

fireplace in living area (inset).
Thomas Dorr 

Under Secretary 

USDA Rural Development

USDA RURAL DEVELOPMENT

Committed to the future of rural communities.

Fellow Idahoans:

 I am very pleased to present the 2007 Annual 

Report for USDA Rural Development in Idaho. Our 

final numbers in program delivery for FY07 reflect a 

22% increase over last year’s efforts. That is fantastic!! 

Our employees are all to be commended for their hard 

work. It was a record year! Over $129.3 Million 

Dollars spent in rural communities across Idaho. 

That means that every program area increased their 

number of loans and grants over FY06. 

“USDA is an equal opportunity provider, 

employer and lender. To file a complaint of 

discrimination write USDA, Director, Office of 

Civil Rights, 1400 Independence Avenue, SW, 

Washington, DC 20250-9410 or call (800) 

795-3272 (voice) or (202) 720-6382 (TDD).”

Message from the Acting Secretary of Agriculture - “Our rural communities 

are the home and heart of American agriculture. Family life on the farm largely depends 

on the schools, hospitals, businesses and other services in town. That’s why our rural 

development mission is so important. In 2007 alone, USDA Rural Development invested 

nearly $14 billion in rural communities, including water systems, health care, education, 

small businesses and home ownership. I’m very proud of the Bush Administration’s 

record of support for rural America and proud of our USDA Rural Development team of 

dedicated workers who ensure our programs have a powerful, positive impact on rural 

America.”

Message from the Under Secretary of Rural Development - “We have the privilege 

of working for an agency that touches people’s lives, that strengthens communities, that builds 

hope one business, one job and one home at a time. Our mission and structure have changed 

significantly over the years. While remaining absolutely committed to our core program 

areas, we are also reinventing ourselves ... once again ... to respond to the remarkable new 

opportunities arising due to distributed computing, broadband, economic diversification and ... 

not least ... renewable energy. In our present form, we are essentially an investment bank for 

rural America with a portfolio of more than $97 billion. This is invested in rural infrastructure, 

housing, community facilities, business, and energy development. We are, in fact, the only 

agency in the federal government that can build an entire community from the ground up.”

Central Idaho Area Office

1441 Fillmore, Suite C

Twin Falls, ID 83301

208-734-1324

Eastern Idaho Area Office

725 Jensen Grove Dr., Ste 1

Blackfoot, ID 83221

208-785-5840

Northern Idaho Area Office

7830 Meadowlark, Ste. C3

Coeur d’Alene, ID 83815

208-762-4939

Western Idaho Area Office

2208 East Chicago, Suite C

Caldwell, ID 83605

208-459-0761

Grangeville Office

RR1, Box 2

Grangeville, ID 83530-1201

208-983-2330

Lewiston Office 

1630 23rd Avenue, Suite 6

Lewiston, ID 83501

208-746-9621

Mountain Home Office

795 South Haskett

Mountain Home, ID 83647

208-587-9791

Preston Office

98 E 800 N

Preston, ID 83263 

208-852-0504

Rexburg Office

302 Profit

Rexburg, ID 83440

208-356-7248

Rupert Office

98-B South 200 West

Rupert, ID 83350-9603

208-436-0116

Weiser Office

845 East 9th 

Weiser, ID 83672-2356

208-549-4280

 OFFICE LOCATIONS

 These funds have been used for homes and for business enterprises. They 

have also been used for water and waste treatment facilities and to improve 

the quality of life for rural Idahoans. This report contains only a few of our 

success stories. We want to thank our private, nonprofit and government 

partners for the great support we have received from them during this past 

year. With their assistance, we have been able to improve health, safety and 

job security for families and communities across our great state.

Sncerely,

Michael A. Field, State Director

USDA Rural Development

River View Apartments Burley, Idaho

2007 Annual Report

IDAHO

Avery (continued from previous page)

The selected project will include 

construction of a deeper well (in a new 

more reliable location) and new well 

pump, approximately 2,200 lineal feet of 8” 

transmission line, and a new 140,000 gallon 

buried concrete storage reservoir. The town 

remains under a “Boil Water Advisory” by DEQ 

until a safe source of supply can be obtained. 

 The project is scheduled to be constructed 

during the 2008 construction season and 

should provide a permanent safe drinking 

water source, and as a side benefit, should 

also provide more consistent water pressures 

throughout the water distribution system. A view of the City of Avery from the St. Joe River

For the View

Carlos and Trina Christensen have lived and worked on Carlos’ father’s farm for 22 years. Their 

family of seven made their home in a single wide trailer between Carlos’ parent’s home and the 

calf pens. Carlos and Trina applied for financing through USDA Rural Development and were 

determined eligible in 2005, but there were problems with clear title on the acre Carlos’ parents agreed to 

sell them. Last year they were able to clear up the title problems and found a contractor to build their home. 

 When Julie Neff, SFH Specialist, did the final inspection of the 

completed house she commented to Trina on the beautiful view from 

her window. Trina looked out the window and said “It is beautiful and it’s 

so nice not to have the cows staring at me through my kitchen window.” 

 When Trina went in to the Blackfoot office to sign the final paperwork on their loan 

Julie asked her if she would allow us to tell her story to let others know how USDA 

Rural Development home loans can help others get a home of their own. Trina 

is a bubbly outgoing person but right then her eyes filled with tears. She found 

it difficult to talk at this emotional moment but she said “We are so very grateful 

for everything you’ve done for us. We could never have done this without you.”

USDA Rural Development Idaho was recognized as the third highest state in the nation in 

utilization of our initial allocation of funds (which is based on rural population) from 2001 

through 2007. Congratulations to Idaho Employees for their outstanding performance.