U.S. Department of Agriculture (USDA) Rural Development Under Secretary Lisa Mensah and U.S. Representative Raul Ruiz, M.D. (CA-36) highlighted an innovative public-private partnership today resulting in $32 million of Community Facilities Relending Program funds to two California organizations, Rural Community Assistance Corporation (RCAC) and Arcata Economic Development Corporation. These organizations will use the long-term, low-interest financing to target investments in the state’s most underserved and isolated rural communities to help build or improve essential community facilities and services such as education, health care and infrastructure.
“This effort has the power to transform some of America’s poorest rural areas into economically thriving and competitive places to live and work,” Mensah said. “It complements other poverty-fighting tools the Obama Administration has developed like the Promise Zone initiative and USDA's StrikeForce by engaging with private, philanthropic, and financial institutions to implement place-based investment strategies.”
Mensah made the announcement at Galilee Center, which has received a total of $246,000 in USDA Rural Development funding to help expand services including their food distribution program and comfort station to low income families and agriculture workers in the Eastern Coachella Valley.
“I am proud to announce a $32 million investment by the U.S. Department of Agriculture in California rural areas through the Community Facilities Relending Program,” said Ruiz. “As a physician, I know that community programs deliver essential care and services to underserved populations that need them most. This investment will give rural areas, like our valley, better access to critical community development, health care, infrastructure, and educational and economic opportunities."
This new financing program has two unique features. First, private financial institutions, including Bank of America and others, will be providing guarantees for a portion of the loans. Second, the recipient community development organizations, or “re-lenders,” may also have an opportunity to secure grants provided by seven of the nation’s premier philanthropic organizations through a $22 million fund to assist in managing and capacity building. The Mary Reynolds Babcock Foundation will manage this grant fund. A complete list of recipients was announced by Agriculture Secretary Tom Vilsack last week.
In addition to today’s announcement, Mensah and RCAC will tour housing and infrastructure projects under development in the Coachella Valley, as well as meet with local stakeholders to discuss challenges and opportunities in the region.
USDA Rural Development California has a $6.9 billion loan portfolio and 18 offices throughout the state. The agency annually invests $1 billion, on average, in California’s rural communities.
Since 2009, USDA Rural Development (@USDARD) has funded nearly 9,200 community facilities such as schools, public safety and health care facilities; invested nearly $13 billion to start or expand nearly 112,000 rural businesses; helped 1.1 million rural residents buy homes; and helped bring high-speed Internet access to nearly 6 million rural residents and businesses. USDA also has invested $31.3 billion in 963 electric projects that have financed more than 185,000 miles of transmission and distribution lines serving 4.6 million rural residents. For more information, visit www.usda.gov/results. To read more about USDA’s investments in rural America and its successful turnaround, visit USDA's entry on Medium.com, Rural America Is Back in Business.