Date: 1995-07-20
Speaker: DE LA GARZA (democrat)
Chamber: H

Mr. Chairman. this amendment will restore $4.332.000 in budget authority for the rural development loan fund program to continue direct loans to rural empowerment zones and 30 rural enterprise communities established last year. We know. and we sympathize with the problems of the appropriators. but I think that we have found a way to restore these funds. Mr. Chairman. by reducing the amount given to the administrative function of the rural housing. because the loans on rural housing have all been reduced by substantial amounts. and it is our intention that the reduction that would accrue from not having to do that work be taken from the administrative side and provided for the technical assistance to the empowerment zone. Mr. Chairman. the empowerment zones and enterprise community are the poorest of the poor. The nominated areas have to be less than 30.000. must have an unemployment below the poverty line. over. 35 percent. They must have pervasive poverty and unemployment. And with all of the good intentions that these programs were dedicated to last y.ear. I think that it would be in our own best interests to establish them. establish confidence in the community. get them to working together. matching funds and all of the work that has been done basically by the poor themselves. and I think it would be appropriate. I do not think that we do any damage to the area where we are transferring from. and it is not our intention to do any damage. but I think. and hopefully. that novel and innovative ways could be found between now and final passage. We will leave that to the distinguished Members. the chairman. and ranking member and their staff. Mr. Chairman. thank you for the opportunity to explain my amendment. It would restore $4.322.000 in budget authority for the Rural Development Loan Fund Program account to continue direct loans to the three Rural Empowerment Zones and 30 Rural Enterprise Communities established last year. This will support a loan amount of $7.2 million. the same level as was contained in the version of H.R. 1976 reported out by the Appropriations Committee. The Empowerment Initiative involving these areas will help them to help themselves by providing Federal loans and grants that will be matched with State assistance and other nonmonetary assistance such as targeted tax credits and technical assistance from a variety of Federal. State. and local agencies. Mr. Chairman. the localities involved in this initiative are some of the most impoverished rural areas in the United States. Each zone or community selected to participate in this effort put together a longrange detailed plan for utilizing the funds and technical assistance that will be provided to them. The loans that go out under the Rural Development Loan Fund are among the most effective in creating jobs in rural America. The lending history of the RDLF program shows an average job creation of 2530 jobs for every $110.000 loaned out. This combination provides the potential for a tremendous return on the Federal Governments investment in areas in desperate need of economic activity. My amendment as drafted would pay for the restoration of the Empowerment Zones/Enterprise Communities funding through a decrease in the appropriation available for the administrative expenses of the Rural Housing and Community Development Service. I will work with my colleague.