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

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March 28th, 2024 by Ric Hanson

MASON CITY, Iowa, March 28, 2024 – U.S. Department of Agriculture (USDA) Rural Development State Director in Iowa Theresa Greenfield today (Thursday), 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.

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.

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. In southwest Iowa….

  • The City of Elk Horn (IA) 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.
  • 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.
  • The 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 pre-development feasibility studies, design and technical assistance on proposed water and waste disposal projects. In western Iowa….

  • The 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.