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USDA Invests $243 Million in Rural Community Facility Improvements in 22 States - Five Tennessee Projects Receive Funding of over $3.6 Million

Name
Sherri McCarter
City
Nashville
Release Date

Assistant to the Secretary for Rural Development Anne Hazlett this week announced that the U.S. Department of Agriculture (USDA) is investing $243 million in 50 rural community facility projects in 22 states. Tennessee State Director Jim Tracy announced that five of those projects are in Tennessee with investments totaling over $3.6 million.

   “Tennessee rural communities have tremendous needs that many times require financial assistance,” Tracy said. “USDA can be that partner that helps communities meet those needs and improve rural prosperity.”

   USDA is making the investments through the Community Facilities Direct Loan Program. The recently passed 2018 Omnibus bill increased the Fiscal Year (FY) 2018 budget for the program to $2.8 billion, up $200 million from FY 2017.

   More than 100 types of projects are eligible for funding, such as schools, health care facilities, libraries and infrastructure improvements. Eligible applicants include municipalities, public bodies, nonprofit organizations and federally and state-recognized Native American tribes in rural areas with a population of 20,000 or less. There is no limit on the size of the loans. Loan amounts have ranged from $10,000 to $165 million.

   Tennessee’s awardees include:

  • Second Harvest Food Bank is receiving a $2,900,000 loan to construct a 28,600 square-foot facility in Benton County to be used as a food distribution warehouse for local food pantries. The facility will provide more practical access to Second Harvest’s 66 partner agencies in West Tennessee.

  • Hancock County is receiving a $144,000 loan to purchase a new roll-off truck to replace the old one that has caused a financial burden due to the need for repairs. A new truck will alleviate the cost of repairs and may save the county money in time and efficiency.

  • Shady Valley Volunteer Fire Department is receiving a $40,000 loan to purchase a 2004 Ferrara Igniter Custom Cab Fire Engine. The current outdated fire engine will be replaced and allow Shady Valley VFD to maintain a fire protection rating of 5. Additionally, replacing the 1979 engine will enable the fire hall to meet current safety standards.

  • The town of Halls is receiving a $125,000 loan to purchase a building and upgrade the interior and exterior. This will enhance services to the community. Several events will take place at the building, such as: flea markets, concerts, car shows, FFA activities and BBQ cook-offs. The Fair offices will also be located in the space.

  • Macon Hospital Inc. is receiving a $425,000 loan to expand the emergency department at the Macon Hospital, Inc. and to renovate a portion of the existing facility. This will allow the Macon Hospital to better serve patients by increasing the number and size of treatment rooms, as well as improving clinical operations and patient access.

   In April, Hazlett said USDA will prioritize investments to address the opioid crisis in rural communities. In the Community Facilities Grant Program rural communities, nonprofit organizations and federally recognized tribes can apply through the usual Community Facilities grant application process for grants up to $150,000 for innovative projects such as mobile treatment clinics. Community Facilities grants may fund up to 75 percent of an eligible project.

   Last year, President Donald J. Trump established the Interagency Task Force on Agriculture and Rural Prosperity to identify legislative, regulatory and policy changes that could promote agriculture and prosperity in rural communities. In January, Secretary Perdue presented the Task Force’s findings to President Trump. These findings included 31 recommendations to align the federal government with state, local and tribal governments to take advantage of opportunities that exist in rural America. Increasing investments in rural infrastructure is a key recommendation of the task force.

   To view the report in its entirety, please view the Report to the President of the United States from the Task Force on Agriculture and Rural Prosperity (PDF, 5.4 MB). In addition, to view the categories of the recommendations, please view the Rural Prosperity infographic (PDF, 190 KB).

   USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure improvements; business development; housing; community services such as schools, public safety and health care; and high-speed internet access in rural areas. For more information in Tennessee, visit www.rd.usda.gov/tn.