USDA will invest more than $8.3 million to help rural communities and businesses in 11 states with projects designed to create or save more than 700 jobs.  The funds will be used to leverage another $35.4 million from private and other public sources.  For fiscal 1999, USDA expects to provide a total of $26 million in loans and grants under the rural development program.

Under the program, USDA provides funds to Rural Utilities Service borrowers, typically rural telephone or electric cooperatives, which in turn provide zero-interest loans to rural business and communities.

USDA will provide about $4.5 million of the $8.3 million to rural businesses and communities while issuing $3.8 million as grants to rural utility cooperatives to make the zero-interest loans to rural businesses and for community development purposes.

When repaid into a revolving loan fund, the money will be used to finance other rural community and business needs.