Rural utilities to receive $1 billion, loans to improve infrastructures

USDA Rural Development Agriculture Secretary Tom Vilsack announced that 37 rural utilities and cooperatives in 29 states have been selected to receive more than $1 billion in loans to build and repair more than 10,000 miles of distribution and transmission lines and make system improvements that will benefit 60,000 rural customers. Missouri is among the 29 states with $237,316,000 of the funds being allocated to Missouri rural customers.

"President Obama is delivering on his commitment to invest in rural America's infrastructure by funding upgrades to rural utilities and cooperatives," Vilsack said. "Rural communities need affordable up-to-date electric service in order to broaden economic opportunities. These loans will enable cooperatives to deliver improved service to more customers."

The funding is being provided through USDA Rural Development's Electric Programs which provides loans and loan guarantees to help utilities, cooperatives, states, and local governments provide or improve electric service in rural areas. The Electric Program also helps finance energy conservation and renewable energy systems.

According to Pemiscot-Dunklin General Manager, Charles Crawford, the money is provided to do projects and jobs that companies need to complete over the next two to three years.

"These are ordinary loans offered from USDA and all have to be put in a work plan to do certain things," Crawford said.

These certain items include generator maintenance and weatherization, powerplants passing air quality tests and receiving weatherization, and other upgrades and improvements to improve reliability, Crawford noted.

Funding of each loan recipient is contingent upon the recipient meeting the conditions of the loan agreement. For a complete recipient list, visit http://www.usda.gov/newsroom/.

More recently, USDA Rural Development has began accepting applications for grants and loan guarantees for farmers and rural small businesses to install renewable energy systems, make energy efficiency improvements or conduct feasibility studies.

These grants will be administered through the agency's Rural Energy for America program. The maximum grant for renewable energy systems is 25 percent of eligible project costs and no more than $500,000. Energy efficiency improvement projects are eligible for as much as 25 percent of eligible project costs and no more than $250,000.

Applicants must be a farmer earning 51 percent of more of gross income from agricultural production or a small business, as defined by the U.S. Small Business Administration to be eligible for renewable energy or energy efficiency grants. These projects must also be located in rural areas.

The maximum loan guarantee is 75 percent of eligible project costs and no more than $25 million. Combination loan guarantees and grants are also available, with feasibility studies also qualifying for grants under the program.

The deadline for applications is July 31 and applications may be obtained by contacting Phyllis Minner, Area Specialist, at the Dexter Rural Development Office located at 18450 Ridgeview Lane, Dexter, Mo., or by contacting (573) 624-5939, ext. 4.

USDA Rural Development's mission is to increase economic opportunity and improve the quality of life for rural residents. Rural Development fosters growth in homeownership, finances business development, and supports the creation of critical community and technology infrastructure.