Expansion of Benefits

Expansion of Benefits

For Rural People

More than a million people In rural America may benefit from an expansion in financial support for rural corr munity facilities and famil; farms authorized by recen legislation, E. C. Compton Farmers Home Administration state director for Virginia said today. Private investors will provide the bulk of the funds or an insured basis througl USDA's Farmers Home Administration.

The legislation signed inn law by President Johnson or October 7: - authorizes an increast from $200 to $450 million ir the Farmers Home Administration’s ability to insure loans in any one year for rura community facilities including water supply and waste disposal systems, and for the development and purchase of family farms. - provides, for the first time this type of credit for rura waste disposal systems. - authorizes, for the first time, grants to supplemen this type of credit for rura water and waste disposal sys terns. Grant authority may no exceed 50 percent of the construction of a project nor i total of $50 million a year - authorizes, for the firs time, grants totaling $5 million a year for comprehensive planning of water anc sewage systems. - increases from 2,500 t( 5,500 the size of towns eligible for such assistance. - increases from $1 to $million the maximum size of < loan, or a combination loai and grant for water suppl; or waste disposal systems The 1,600 field offices o the Farmers Home Administration are being notified t< accept applications under th< expanded credit authorities Grant assistance will not b< available until funds are ap propriated by Congress. Applications for rural con munity facilities loans maybi made by public bodies and noi profit private organizations

The $450 million in insurei loans plus the $55 million ii grants authorized yearly b; the Act can help an estimate! 800 rural areas containing a] proximately one million peo pie obtain needed water am

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