2010 ANNUAL REPORT Helping Rural Nebraskans Every Day and in Every Way
2010 ANNUAL REPORT Helping Rural Nebraskans Every Day and in Every Way

Tom Vilsack

Secretary of Agriculture 

Dallas Tonsager

USDA Rural Development

Under Secretary

Maxine Moul

USDA Rural Development

State Director in Nebraska

NEBRASKA

Broadband Programs $11.3 Million

Telecommunications Programs $112.4 Million

Business Programs $80.6 Million

Community Programs $63.9 Million

Housing Programs $113.2 Million

$

50

100

150

200

250

300

350

400

ARRA

REGULAR

FY 2010

$381M

FY 2009

$209M

$66

$143

$125

$256

USDA Rural Development is Changing Rural Nebraska

We invest in housing, business, community facilities, broadband 

and telecommunications to bring a greater quality of life 

to rural residents. USDA Rural Development Investment 

in Rural Nebraska in Fiscal Year 2010: $381 Million

American Recovery and Reinvestment Act (ARRA) dollars 

totaling nearly $191 million were delivered in Fiscal Years 

2009 and 2010 to benefit rural Nebraska. 

Funds were delivered through:

	 HousingPrograms $62.8 Million

	 BusinessPrograms $59.2 Million

	 CommunityPrograms $57.4 Million

Broadband $11.3 Million

Fiscal Years 2009 and 2010 Funding Expanded By ARRA 

Dollars To Assist A Greater Number of Rural Nebraskans

Leveraging of federal, state and local resources 

allowed for a greater number of rural Nebraska 

residents and communities to be served.
The Recovery Act dollars are at work at the Community Hospital at 

McCook. The hospital serves 11,500 rural residents in eight counties 

and is being expanded to improve the care of its patients. The project 

has already created more than 300 construction jobs with another 100 

expected during three phases.

The City of Stromsburg’s improvements to its municipal water will 

bring the system that serves more than 500 users into compliance with 

new Safe Drinking Water Act regulations. 

Prairieland Foods, LLC, a local dairy processing facility in Hallam, 

purchased a facility to meet the growing demand for a local, source 

verified, sustainable supply of dairy foods and ingredients and to diver-

sify the market for milk produced at local dairies. Rural Development 

assisted with a loan guarantee to provide the working capital to meet 

those growing demands. 

Homeownership was brought to Kendra and Robert Green who were 

tired of paying monthly rent and wanted to provide their 18 month 

old daughter with a home. They purchased a house in Plattsmouth 

through a low interest rate, no money down loan offering affordable 

monthly payments.

USDA Rural Development has clearly accomplished what the 

Recovery Act intended-- more rural residents assisted, jobs created 

and community facilities built, bringing an improved quality of life to 

rural Nebraska.

This 2010 Annual Report highlights these Recovery Act projects and 

others funded in Nebraska through our regular appropriations. Our 

total funding in 2010, including broadband and Rural Utilities Services 

loans, reached a record $381 million. USDA Rural Development is 

proud of these accomplishments, made possible through our partner-

ships with Nebraska lenders, communities and businesses.

Sincerely,

Maxine B. Moul

Nebraska State Director

State Director’s Letter 2010 Annual Report w w w.rurdev.usda.gov/ne

State Director’s Letter 2010 Annual Report

Helping Rural Nebraskans Every Day and in Every Way 

Nebraska communities, businesses and citizens made millions of 

dollars of investments in 2010, with the support and resources of 

USDA Rural Development.

The American Recovery and Reinvestment Act, passed into law on 

February 13, 2009 by Congress, provided taxpayer dollar support for 

loans, grants or loan guarantees for community facilities, water and 

waste disposal, broadband, business and industry and housing. In 

Nebraska the stimulus package brought more than $190 million into 

the state. What did these funds accomplish? 

• 1,700 estimated permanent jobs created and/or 

saved. That does not include the construction jobs 

provided as a result of the projects across the state.

• $62.8 million in loans and loan guarantees 

brought homeownership to 773 households.

• $58.7 million for business and industry loan 

guarantees to 11 businesses for working 

capital, expansion and debt restructure.

• $42.9 million for community facility loans, grants 

and loan guarantees that assisted 16 projects rang-

ing from new hospitals and new libraries to street 

improvements, community building renovations 

and the purchase of emergency equipment.

• $14.5 million that assisted 11 communities 

with their water and waste water needs.

• $11.3 million to Southeast Nebraska Communications 

Inc. of Falls City for continued and enhanced 

access to broadband capabilities. 

• $472,000 for seven rural business enterprise grants 

that provide technical assistance and revolving loan 

funds to facilitate and finance the development of 

small and emerging rural, private businesses.

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Community Facilities Programs

Community Facilities Programs help rural Nebraska communities and 

individuals by providing loans, loan guarantees and grants for community 

facilities. We provide funding for childcare centers, fire and police stations, 

hospitals, libraries, nursing homes, schools, and much more.

Utility Programs work to provide reliable and affordable water, waste treatment, electric power and telecommunications services that can help rural 

areas of Nebraska to expand economic opportunities and improve the quality 

of life for rural residents. USDA Rural Development provides funding opportunities in the form of payments, grants, loans, and loan guarantees. 

PROGRAM HIGHLIGHTS...

• Nebraska’s investment in community facilities this year 

benefited 22 communities through $43 million for projects such 

as libraries, public safety, tribal colleges, community/senior 

centers, ag societies, street improvements and equipment. 

• Six Critical Access hospitals received funding totaling $40.1 

million, to serve 76,279 rural residents. Over the last five fiscal 

years, Rural Development has assisted in 20 hospital projects 

with $127.9 million in loans, loan guarantees and grants. 

• Funding of $20.9 million assisted 14 communities and 2,463 

households with their water and wastewater needs.

CommunityFacility GuaranteedLoan Disaster........................................$2,900,000

CommunityFacilities DirectLoan...............................................................$424,300

CommunityFacilities DirectLoan and Grant ARRA*.............................$25,019,530

CommunityFacilities DirectLoan Disaster.............................................$14,000,000

CommunityFacilities Grant........................................................................$161,000

TribalCollege Grant....................................................................................$392,800

Economic Impact Initiative Grant...............................................................$131,000

WaterandEnvironmentalLoan...............................................................$2,251,000

WaterandEnvironmentalLoan and Grant ARRA*.................................$13,118,600

WaterandEnvironmental Grant .............................................................$5,277,900

EmergencyCommunityWater Assistance Grant.........................................$264,000

Total Community Programs ................................................$63,940,130

*ARRA-American Recovery and Reinvestment Act

USDA’S RURAL UTILITIES SERVICE BROADBAND LOAN PROGRAM

provides loans to rural Nebraska to fund the costs of constructing, improving 

and acquiring facilities to provide broadband service to eligible rural communities. The Telecommunications Infrastructure Program provides loans 

to finance traditional telecommunications infrastructure in rural Nebraska 

communities. This program provides guaranteed, cost of money and hardship 

loans to finance voice telephone service. 

PROGRAM HIGHLIGHTS...

• Nebraska telecommunications loans totaling $112.3 million 

were awarded to Southeast Nebraska Telephone Company 

at Falls City, Arapahoe Telephone Company, Glenwood 

Telephone Membership Corporation at Blue Hill, and 

Northeast Nebraska Telephone Company at Jackson. 

w w w.rurdev.usda.gov/ne

• Southeast Nebraska Communications Inc. was awarded a loan 

and grant totaling $11.3 million through the ARRA Broadband 

Initiatives Program. The project expects to benefit approximately 

3,000 people, 50 businesses, and 20 community institutions. In 

addition to the jobs this project will create initially, it will help 

drive economic development and create jobs for decades to come.

BroadbandLoan*....................................................................................$3,396,895

Broadband Grant*..................................................................................$7,888,472

Total Broadband Loan and Grant Program...........................$11,285,367 

Total Telecommunications Loan ........................................ $112,337,000

*ARRA-American Recovery and Reinvestment Act

Safer Water Brought to Rural Nebraska Community

USDA Rural 

Development Nebraska 

State Director Maxine 

Moul helped Stromsburg 

to celebrate, in honor of 

the 40th anniversary of 

Earth Day, the planned 

improvements to the 

City of Stromburg’s 

municipal water 

system. USDA Rural 

Development assisted 

with a $1,358,000 loan 

and $541,500 grant 

made available through 

the American Recovery 

and Reinvestment Act. The improvements will bring the system, serving more 

than 500 users, into compliance with new Safe Drinking Water Act regulations. 

New Library to a Rural Community Brings Greater Services

As part of the Recovery Summer 

Tour which highlighted and 

celebrated projects funded 

through the American Recovery 

and Reinvestment Act (ARRA), 

USDA Administrator for Business 

and Cooperative Services Judy 

Canales met with the Pawnee City 

Public Library Foundation staff and 

partners to discuss the plans for the 

future Pawnee City Public Library. 

USDA Rural Development is 

providing funding for this project 

through a $160,000 ARRA loan and 

a $172,000 ARRA grant to assist in 

the purchase of land on which to 

build the new public library and the 

associated construction costs. 

The new library will consist of 6,500 sq. ft. with added amenities to make the 

facility more user friendly for the patrons, increasing the number of residents 

who utilize the library. The existing Carnegie Library is at full capacity with no 

room to expand for needed services. 

A segment of water pipe was signed in 

honor of Earth Day and the water project.

Administrator Judy Canales, center, 

reviews Pawnee City Library plans.

w w w.rurdev.usda.gov/ne
Top 100 American Recovery and Reinvestment Act 

Project Is Committed to Rural Healthcare

USDA Under Secretary for Rural Development Dallas Tonsager and United 

States Senator Ben Nelson participated in a ceremonial groundbreaking in 

McCook, Neb. in September 2009 that marked the beginning of the expansion 

of the Community Hospital. The expanded facility will better serve the needs 

of the community.

The Community Hospital was named in Vice President Joe Biden’s report, “100 

Recovery Act Projects That Are Changing America.”  Community Hospital was 

selected from among federal agency American Recovery and Reinvestment 

Act (ARRA) projects nationwide.

The Community Hospital of McCook secured $17 million through Rural 

Development Recovery Act funding, leveraged with a $15 million loan from a 

consortium of independent community banks in Nebraska that was backed 

by a USDA Rural Development guarantee. 

The expansion created more than 300 construction jobs in Phase One and is 

expected to create another 100 throughout the course of the construction.

Community Hospital is a Critical Access Hospital. The additions to the facility 

are intended to improve the care of its patients. The hospital serves 11,500 

rural residents in eight counties.

U.S. Senator Ben Nelson, Hospital Administrator Jim Ulrich and USDA Under Secretary Dallas Tonsager 

celebrate the Rural Development funding for the expansion and renovations of McCook’s Hospital.

Groundbreaking for the new Community Hospital addition Phase One took place in September, 2009.

Community Hospital addition, Phase One construction of patient rooms.

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Business-Cooperative Programs

USDA Rural Development, through its Business Programs, provides job 

training and business development opportunities for rural Nebraska residents, 

including cooperative business development, community economic development, strategic community planning and faith-based and self-help initiatives.

Educational opportunities, training, technical support, and tools for rural 

Nebraska residents are provided to start small businesses and to access jobs 

in agricultural markets, and other existing markets, as well as acquire training 

in vocational and entrepreneurship skills they can use in the marketplace and 

business sector. 

USDA Rural Development helps rural Nebraska residents and communities 

access renewable energy systems and use energy more efficiently. Energy 

programs provide funding opportunities in the form of payments, grants, 

loans, and loan guarantees for the development and commercialization of 

renewable energy sources. 

BusinessandIndustry GuaranteedLoan 2%.........................................$10,511,500

BusinessandIndustry GuaranteedLoan 1%ARRA ...............................$58,697,469

9007 GuaranteedLoan 1%RenewableEnergySystems..........................$1,989,250

9007 GuaranteedLoan 1%EnergyEfficiencyImprovement....................$1,042,010

EnergyEfficiencyImprovement Grant.....................................................$2,311,917

RenewableEnergySystems Grant..............................................................$522,997

Rural BusinessEnterprise Grant .................................................................$522,030

Rural BusinessEnterprise Grant ARRA........................................................$325,000

Rural BusinessEnterprise Grant Native American Earmark.........................$114,615

Rural Business Opportunity Grant Native American Earmark.......................$76,070

Intermediary RelendingProgram..............................................................$750,000

Rural Microentrepreneur AssistanceProgram Loan.................................$1,200,000

Rural Microentrepreneur AssistanceProgram Grant...................................$280,000

RuralEconomic Development Loan...........................................................$740,000

RuralEconomic Development Grant..........................................................$900,000

Value-AddedProducer Grant .....................................................................$438,286

RuralCooperative Development Grant.......................................................$224,982

Total Business/Cooperative Programs..................................$80,646,126 

*ARRA-American Recovery and Reinvestment Act

PROGRAMS HIGHLIGHTS...

• Eighteen businesses received funding totaling $69.2 

million to assist in business development activities. 

• Financial assistance totaling $5.9 million was provided 

for purchasing and installing renewable energy 

systems or making energy efficiency improvements 

for 157 ag producers and rural small businesses. 

• Loans and grants totaling $1.6 million were made to four 

USDA Rural Development electric program borrowers to 

finance business and community development projects. 

• Three Microenterprise Development Organizations 

received $1.5 million to capitalize three rural microloan 

w w w.rurdev.usda.gov/ne
revolving funds and provide technical assistance and 

training to support the development and ongoing success 

of rural microentrepreneurs and microenterprises.

Keeping the Product Local

Prairieland Foods, LLC is a locally owned and operated dairy processing 

facility located in rural Hallam, Nebraska. The facility was purchased to 

meet the growing demand for a local, source verified, sustainable supply of 

dairy foods and ingredients as well as to diversify the market exposure for 

milk produced at local dairies. Financing was needed to refinance existing 

debt and to provide working capital to meet the growing demands for the 

company’s products.

American Recovery and Reinvestment Act funds through USDA Rural 

Development’s Business and Industry Guaranteed loan program assisted 

the First State Bank of Cortland to provide Prairieland Foods, LLC with a 

$650,000 loan. 

Prairieland has increased its milk production and expanded its markets. 

The processing facility provides several fluid milk products to the area, 

with a target market in Lincoln and Lancaster County. 

The total project saved four jobs and created four new jobs with improved 

salaries for the workers.

Primary Manager Dan Rice pictured inside the processing facility.

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Housing Programs

Single Family Housing Programs provide homeownership opportunities to 

low- and moderate-income rural Nebraskans through several loan, grant, 

and loan guarantee programs. The programs also make funding available 

to individuals to finance vital improvements necessary to make their homes 

decent, safe, and sanitary.

Multi-Family Housing Programs offer rural rental housing loans to provide 

affordable multi-family rental housing for very low-, low-, and moderateincome families; the elderly; and persons with disabilities. Rental assistance is 

available to eligible families. Farm labor housing is also provided through a 

special loan program.

PROGRAM HIGHLIGHTS...

• The direct and guaranteed housing loan programs brought 

homeownership to 1,204 households through $103.2 million in 

USDA Rural Development funding. 

• Essential repairs to rural owner-occupied homes were provided to 

125 homeowners by financing of $750,500. 

• Rural Development provided affordable rent to 3,593 tenants of 

Rural Development multi-family rural rental housing complexes 

through $7.1 million in funding.

• Four existing Rural Development rural rental housing complexes 

received $2 million to preserve and revitalize their facilities and 

provide continued affordable rents to the tenants. 

Guaranteed Home OwnershipLoan-Annual.........................................$82,807,283

Guaranteed Home OwnershipLoan-ARRA*............................................$7,569,937

Direct Home OwnershipLoan Annual .....................................................$4,025,727

Direct Home OwnershipLoan-ARRA*.....................................................$8,747,789

Rural Home RepairLoan ............................................................................$318,322

Rural Home Repair Grant ...........................................................................$432,161

HousingPreservation Grant.........................................................................$65,112

Rural Rental HousingProgram-MPR .......................................................$1,971,201

Rural Rental Housing Voucher Demo..........................................................$128,232

Rural Rental Assistance...........................................................................$7,085,628

Total Housing Programs ................................................... $113,151,392

*ARRA-American Recovery and Reinvestment Act

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Housing

USDA Rural Development National Housing Administrator Tammye Trevino 

celebrated National Homeownership Month in Plattsmouth, Nebraska 

where two local families were recognized for becoming rural homeowners 

through USDA Rural Development American Recovery and Reinvestment 

Act (ARRA) funding. 

Kendra and Robert Green were tired of paying monthly rent and wanted 

to provide their 18 month old daughter with a home. The Greens received 

a low interest rate, no money down loan funded through the USDA Rural 

Development Single Family Housing Direct Loan program. 

Jal Angelsson and his family needed a larger home to meet the needs of a 

growing family. A loan made by Cass County Bank of Plattsmouth, Nebraska, 

backed by a USDA Rural Development guarantee, allowed the Angelssons to 

purchase an affordable and larger home.

Providing Affordable Housing for Farm Labor Workers

Doug and Linda 

Hodorff operate the 

Broken Bow Dairy, 

located in rural 

Milburn, Nebraska that 

employs six full-time 

and two part-time 

employees. Housing 

for the employees 

and their families 

was substandard, 

with the nearest 

town 20 miles away.

USDA Rural 

Development provided 

a $215,000 MultiFamily Farm Labor 

Housing for On-Farm 

Labor loan to purchase 

two modular homes 

for two of their employees and their families. The homes are energy efficient 

and great assets as they will provide suitable housing for years to come.

Tammye Trevino, center, with the Angelsson and Green families.

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The U.S. Departmentof Agriculture (USDA)prohibitsdiscrimination in allof itsprograms andactivitieson thebasisof race, color, nationalorigin, age,disability, and where applicable, sex, marital status, familial status,parentalstatus, religion, sexual orientation, political beliefs, genetic information, 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 whorequirealternative means for communication ofprogram information (Braille, largeprint,audiotape,etc.) shouldcontact USDA’sTARGETCenterat (202)720-2600(voiceandTDD).Tofileacomplaintofdiscrimination, write to USDA, Assistant Secretary for Civil Rights, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, S.W., Stop9410,Washington, DC 20250-9410, or call toll-free at (866) 632-9992(English) or (800) 877-8339 (TDD) or (866) 377-8642 (English Federal-relay) or (800) 845-6136 (Spanish Federal-relay). USDA is an equal opportunityprovider andemployer.

Sheridan

Richardson Pawnee

Nemaha

Otoe

Lancaster 

Johnson

Gage

Cass

Saunders Butler Polk

Seward 

Saline

York

Fillmore

Jeerson Thayer Nuckolls

Clay

Hamilton 

Hastings

Webster

Kearney Phelps

Harlan Franklin

Dawson

Gosper

Furnas Red Willow

Frontier

Lincoln

Hayes

Hitchcock

Chase

Dundy

Deuel Keith

Perkins

Logan McPherson

Thomas Hooker Grant

Arthur

Cheyenne

Banner

Kimball

Morrill

Scottsblu

Dawes

Box Butte

Sioux

Garden

Cherry

Bualo Hall

Nance

Merrick

Platte Colfax

Sarpy

Douglas

Washington

Dodge

Burt Cuming Stanton Madison

Thurston Wayne Pierce

Dakota

Dixon

Cedar Knox

Antelope

Boone

Sherman Howard

Valley Greeley

Wheeler Gareld Loup Blaine

Custer

Brown Rock

Keya Paha

Holt

Boyd

LINCOLN

NORTH PLATTE

SCOTTSBLUFF

KEARNEY

NORFOLK

AINSWORTH

Maxine Moul, State Director

Room 308Federal Building

100Centennial Mall North

Lincoln, Nebraska 68508

Phone402-437-5551•Fax402-437-5408

www.rurdev.usda.gov/ne

Area Offices

Lincoln - (402)423-9683Ext.4

Kearney- (308)237-3118Ext.4

Scottsbluff - (308)632-2195Ext.4

Norfolk- (402)371-5350Ext.4

Ainsworth - (402)387-2242Ext.4

North Platte- (308)534-2360Ext.4
USDA Rural Development State Office

Room 152 Federal Building100 Centennial Mall NorthLincoln, Nebraska 68508