“I’m from the federal government and I’m here to help you.” Chuckles are expected when you hear that statement, and that is why it did not bother her when chuckles greeted Colleen Callahan, Illinois Director of USDA’s Rural Development Agency. She was addressing about 75 representatives of local governments, non-governmental organizations, and small rural business owners who gathered to learn about funding available from the U.S Department of Agriculture.
Most of the non-farm folks reading this have the perception that USDA stuffs farmers’ mailboxes full of checks everyday. Raise your hand if you think that. Ah, ha, just as I expected. We won’t go into the fact that 60% of the USDA budget is used for food stamps, school lunches, and other nutrition programs. While food and nutrition get the largest slice of the USDA budget and conservation is also high on the list, a significant amount of dollars are also allocated for rural development, which includes economic development opportunities, improving infrastructure, and raising the quality of life of residents of small towns across America.
USDA’s funding this fiscal year was bolstered by federal stimulus money designed to improve the economy beyond Wall Street and mortgage bankers. The presentation by Callahan’s staff laid out many of those programs, only 5% of which are grants, but the bulk are either direct loans or guaranteed loans through commercial lenders. Nationally, the Rural Development offices will have $1.5 billion to help stimulate the Main Street America economy, $45 million of which is earmarked for Illinois business and industry. Community facilities are another eligible category of Rural Development funds, and nearly $6.4 million have been awarded to date in Illinois. The third leg of the stool is water and waste treatment facilities, and $14 million has already come to Illinois.
At the meeting Ed Aukamp, city administrator of Macon introduced himself as a beneficiary of the Rural Development funding. Macon is in the process of obtaining a new water tower, and Aukamp’s calculations indicated that construction costs would inflate faster than the village could build up its savings to pay cash for the water tower. The Rural Development direct loan program means USDA funding will benefit everyone in Macon who turns on the faucet or flushes the toilet.
Some $110,000 USDA dollars have already been approved for the DeWitt County Development Council, whose principals Ruth Stauffer and Ken Bjelland were at the meeting and described how small businesses in DeWitt County to tap into a revolving fund comprised of the USDA money with the requirement that the loan would create additional employment at those businesses. Simple enough.
More complex is a project underway at Auburn, planned by a church in that community, to development land at the junction of Routes 4 and 104, potentially with the Rural Development funds. Being designed, according to financial consultant Larry Perkins of Forsyth, is a day care center, an assisted living senior care center, and what will be, Auburn’s only grocery store.
At the conclusion of the meeting, Callahan repeated her statement that “I’m from the federal government and I’m here to help,” but there were no chuckles in the room. Everyone there could envision the opportunity of obtaining either grants, low interest loans, or guaranteed loans to improve their community. Macon is getting its water tower, and Aukamp is also investigating similar funding for improved storm water drainage and a new fire house. DeWitt County is only awaiting receipt of the USDA funds to jumpstart its hiring program.
Funny, not a single dollar of that USDA money will find its way to a farmer’s mailbox. There is a bit of irony in the tone of those chuckles I hear.
