Priming the Pump of the Rural California Economy

Working closely with entrepreneurs, community leaders, lenders, farmers, and families,
USDA Rural Development California invested more than $550 million in California's rural
economies in 2008. This past week, USDA Rural Development State Director Ben Higgins
released the agency's  Annual Report, outlining the full array of USDA Rural Development
assistance delivered in the Golden State in the prior fiscal year.
                                         
"For our employees and the hundreds of rural communities they serve, 2008 was an
enormously successful year - arguably our most successful ever," said Higgins. "Collectively
we invested more than $550 million in our state's rural communities - an increase of well
over $100 million from 2007. In doing so, USDA Rural Development helped create thousands
of new jobs and played a significant role in mitigating economic uncertainties faced by hundreds
of businesses, families, and local and tribal governments in rural California.

Over $210 million was invested to support entrepreneurs in rural areas, organizations which assist
small and emerging businesses, and renewable energy production in California. These investments,
primarily made in the form of loan guarantees to private businesses, saved or created almost 4,000
jobs in rural communities throughout the state.


                                             

Nearly $69 million in grants and loans were provided to California rural communities for facilities and
infrastructure, including water distribution and wastewater treatment systems, telecommunications,
hospitals, health clinics, schools, and to meet the needs of rural law enforcement and fire suppression
agencies. Rural areas eligible for community programs funding are generally defined as those with a
population fewer than 20,000.

An additional $180 million was provided to create first-time homeownership opportunities for hundreds
of rural families, including many who took advantage of USDA's Mutual Self-Help Housing Program.

USDA Rural Development's Mutual Self-Help Housing Program enables groups, generally eight to 10
families, to work together over the span of 15-18 months to build their own homes under the guidance
of a construction expert. USDA Rural Development helps with construction financing with local housing
developers and extends low-interest loans to new homeowners.

The agency's Multi-Family Housing Program, which makes grants and loans for new construction and
repair of apartments for low-income tenants, and for construction and renovation of farm worker housing,
contributed over $97 million to the investment total.

"We're proud of our accomplishments in 2008, and look forward to even more success through fiscal year
2009," said Higgins. "California's rural communities have real needs for improved infrastructure, economic
development, affordable housing, and investment capital. As long as these critical needs exist, USDA
Rural Development will play a role in helping create healthy, vibrant rural communities."

To view the USDA Rural Development California 2008 Annual Report, please
visit www.rurdev.usda.gov/ca