USDA Awards $356 Million in Loans

USDA AWARDS $356 MILLION IN ELECTRIC LOANS

Funds Will Help More Than 45,000 Rural Customers in 10 States

WASHINGTON, Feb. 6, 2009 -Agriculture Secretary Tom Vilsack today said that 16 rural utilities and cooperatives in 10 states have been selected to receive $356 million in loans to build and repair 3,830 miles of distribution and transmission lines and make system improvements that will affect more than 45,000 rural customers.

“Investing in core rural infrastructure is a priority for the Obama Administration,” Vilsack said. “These loans will provide affordable power by financing improvements for key generation, transmission and distribution systems to rural residents and businesses. These funds are an investment in rural America that will help strengthen rural communities.”

The funding announced today is being provided through USDA Rural Development’s Electric Programs, which Congress authorized under the Rural Electrification Act of 1936 to provide loans and loan guarantees to help utilities, cooperatives, states and local governments provide or improve electric service in rural areas. The Electric Programs also help finance energy conservation and renewable energy systems.