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USDA Rural Development Announces $28.6 Million for Small Business, Higher Education and Clean Water in Rural Iowa

Release Date

Impacts in Buena Vista, Butler, Fremont, Monona, Pottawattamie, Shelby, Sioux, Van Buren, and Wayne counties

MASON CITY, Iowa, March 28, 2024 U.S. Department of Agriculture (USDA) Rural Development State Director in Iowa Theresa Greenfield today announced that the Agency is investing $4,780,000 in 5 grants and $23,829,320 in 8 loans to projects in Iowa that promote rural small businesses, support higher education, and improve drinking water and sanitation infrastructure. She made the announcement while participating in the annual Ag Breakfast held at the North Iowa Events Center on the Cerro Gordo County fairgrounds.

“USDA is leading the way in helping rural communities foster economic growth and prosperity,” said Director Greenfield. “The project funding announced today will help communities modernize utilities, businesses, and educational opportunities. None of that is possible without clean water and sanitation. USDA—under the leadership of President Biden, Vice President Harris, and Secretary Vilsack—is championing essential infrastructure in rural Iowa.”

The 13 investments in 11 projects were made through three different USDA programs.

Rural Economic Development Loan and Grant Recipients

The Rural Economic Development Loan and Grant program provides zero-interest loans to local utilities organizations which in turn pass the funding through to local businesses. Recipients are:

-Butler County Rural Electric Cooperative received a $1,372,320 loan to fund a pass-through loan to Bovy RX LLC, doing business as Parkersburg Pharmacy. This project will assist with the acquisition and renovation of a pharmacy in Parkersburg. This project is expected to create six new jobs, retain four jobs and to promote economic development in this rural Butler County community.

-North West Rural Electric Cooperative received a $1,000,000 loan to help fund a pass-through loan to Northwestern College to build a residence hall on the Orange City campus. The project is expected to promote economic development in this rural Sioux County community and create four jobs.

Water & Waste Disposal Loan & Grant Program Recipients

USDA’s Water & Waste Disposal Loan & Grant program provides funding for clean and reliable drinking water systems, sanitary sewage disposal, sanitary solid waste disposal, and storm water drainage to households and businesses in eligible rural areas.

-City of Elk Horn received a $2,739,000 loan to help improve the controlled discharge lagoon wastewater treatment facility. This project will replace aged components and remove accumulated sludge. This project will slipline and seal sewers and manholes to reduce infiltration and inflow. Once completed, the project will mitigate an imminent health and sanitation hazard, enable the city to meet wastewater standards, and promote the health of residents of this rural Shelby County community.

-Harlan Municipal Utilities received a $2,644,000 loan to provide additional funding to improve the water system for the city of Harlan in Shelby County. This project will drill four new wells, construct four new well houses, install new raw water mains to connect the new wells to the existing distribution piping, and install new electrical conduit in the well field. The aged raw water transmission main currently limits available capacity to the treatment plant, which presents a health risk during periods of extended demand. Once completed, the project will provide adequate water supplies and will promote the health and safety of the residents of this rural community.

-City of Linn Grove in Buena Vista County received a $994,000 loan and a $1,700,000 grant to help connect its water system with Iowa Lakes Regional Water's bulk-treated water supply. The project will replace aged distribution piping, services, and meters to increase the system's reliability and pressure. This rural community experiences high manganese levels in the existing well supply which has a do-not-drink restriction in place. The project will provide residents with clean drinking water and bring the city into compliance with water-quality standards.

-Regional Water, a rural water association based in Avoca, received a $4,324,000 loan to help expand water service. This project will construct 12.25 miles of rural potable water piping infrastructure to two housing developments under construction in rural Pottawattamie County. The project will promote the health and safety of residents, businesses, and visitors in this rural area.

-Alta Municipal Utilities received a $10,405,000 loan and a $2,995,000 grant to provide clean drinking water to the city of Alta. This project will construct a reverse osmosis treatment facility and replace asbestos cement pipes to bring the aged distribution system up to modern standards. Once completed, this project will help mitigate health risks for water maintenance and construction workers. The project will help enable the city to meet water quality goals. The project will also promote the health and safety of city residents and residents of nearby Nokomis Township in this rural Buena Vista County area.

-City of Randolph received a $351,000 loan to provide additional financing to help improve the sewer collection system, lift station, and sewer lagoon system for this city in rural Fremont County. This project will help reduce excessive infiltration and inflow levels that have caused hydraulic overload and discharges more frequent than allowed by permit. This project will help improve water service and promote the health and safety of community residents, businesses, and visitors.

SEARCH - Special Evaluation Assistance for Rural Communities and Households Grant Recipients

USDA’s SEARCH program helps very small, financially distressed rural communities with predevelopment feasibility studies, design and technical assistance on proposed water and waste disposal projects.

-City of Humeston received a $30,000 grant to help complete a stormwater facility plan. The plan will include an assessment of existing conditions, recommendations for improvements, and cost estimates for each improvement. This project will promote the health and safety of residents, businesses, and visitors in this rural Wayne County community.

-City of Farmington received a $30,000 grant to help complete a preliminary engineering report. This project will evaluate the city's aging sewer system for deficiencies and repairs needed. This project will promote the health and safety of residents, businesses, and visitors in this rural Van Buren County community.

-City of Castana received a $25,000 grant to help complete a water facility plan with options and recommendations prepared by professional engineers. The city's water is discolored with high mineral content. Some water lines fill with sediment and block water service to customers. This project will promote the health and safety of residents, businesses, and visitors of this rural Monona County community.

Contact USDA Rural Development

USDA Rural Development has 11 offices across the state to serve the 1.3 million Iowans living in rural communities and areas. Office locations include a state office in Des Moines, along with area offices in Albia, Atlantic, Humboldt, Indianola, Iowa Falls, Le Mars, Mount Pleasant, Storm Lake, Tipton and Waverly.

To learn more about investment resources for rural areas in Iowa, call (515) 284-4663 or visit www.rd.usda.gov/ia. If you’d like to subscribe to USDA Rural Development updates, visit our GovDelivery subscriber page.

Under the Biden-Harris Administration, Rural Development provides loans and grants to help expand economic opportunities, create jobs, and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety, and health care; and high-speed internet access in rural, Tribal, and high-poverty areas.

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USDA is an equal opportunity provider, employer and lender.