USDA offers rural development opportunities for Texans

By MONETTE TAYLOR | South Central Texas Edition

July 24, 2003 -- After opening remarks by the U.S. Department of Agriculture (USDA) State Director Bryan Daniel, a group meeting in Bastrop recently heard the latest information concerning rural development opportunities in Texas.

Richard G. Grams, rural development manager, officed in Seguin, explained to the audience consisting of bankers, homeowners, city officials and interested parties that there are 35 programs that can be accessed through the USDA.

According to Grams, " ... helping the people of rural America develop sustainable communities and improve their quality of life is the goal of USDA's Rural Development mission area." He said the USDA believes people in rural areas deserve the same quality of life that is enjoyed by people in the urban or suburb areas.

USDA Rural Development programs "create or preserve" more than 150,000 rural jobs, according to their literature. They (USDA) assist 40,000 to 50,000 families buy homes and help 450,000 low-income, rural people rent apartments or other available housing.

Although many may be familiar with the USDA programs which help citizens obtain ownership of a home, there are several other programs of interest that were presented by Grams.

One of the programs falls under the Business and Industry (B&I) Guaranteed Loan program. Under this program, USDA guarantees up to 80 percent of a loan made by a commercial lender to start or expand a rural business. The USDA also has the ability to offer direct loans to some applicants who are unable to access local commercial lenders.

Monies within the USDA program can also provide technical assistance, research and educational materials to improve the performance of national cooperatives.

Financial assistance is also available for the construction of apartments and other multiple-family housing units in rural areas that lack this type of housing, and the USDA can provide rental subsidies to low-income people, especially the elderly, which can provide up to 70 percent of their rental payments.

"The Self-Help Housing program enables low-income families to become homeowners by helping to build their own homes," according to USDA literature. This is accomplished through "sweat equity," which serves as their down payment.

Another area where the USDA is able to assist rural communities involves vital community facilities, such as daycare centers, police stations, libraries and town halls. Rural areas seeking modern telecomunications (including Internet service), electric power, and water service, also fall into this area. Since these facilities and services improve the quality of living for rural Texans, they are addressed by the USDA Rural Development program.

Finally, there are the Rural Empowerment Zones (EZ) and the Rural Enterprise Communities (EC). This funding is used in high poverty areas and helps "revitalize" local communities through the use of special block grants, tax-exempt facility bonds and tax incentives for employment.

At the end of the information session, attendees were able to ask questions about their specific needs, and each was given a complete packet to take for future use. All were encouraged to call for appointments if there were any areas of interest, since Texas has USDA funding for rural citizens.

Citizens can contact USDA for details concerning rural development funding, 202-720-4323, or online at www.rurdev.usda.gov.