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Last month, I had the privilege of witnessing the American dream come to life for a Rockingham, Virginia family who has just purchased and built their first home with the help of a USDA Rural Development (RD) direct low-interest loan. It was an honor to help Rural Housing Service Administrator Tony Hernandez, Virginia Rural Development employees and local officials welcome Alias and Ansam Khader and their three children to their newly constructed home, which we did via a key presentation ceremony on the family’s new front porch.

Prior to the ceremony, I had the opportunity to spend time with the Khaders as they graciously took me and others on a tour of the house. They shared with us stories of their journey to this special day and visions of their bright future. I quickly learned that the Khaders were a remarkable family, having overcome extraordinary circumstances.

What do siblings Kenna and Peyton Krahulik, organic farmers Lily Schneider and Matt McCue, and livestock producer Brian Morgan have in common? They worked closely with USDA’s Farm Service Agency (FSA) to obtain loans, giving them the working capital they needed to grow or maintain their operation.

FSA makes and guarantees loans to family farmers and ranchers to promote, build and sustain family farms in support of a thriving agricultural economy. It’s an important credit safety net that has sustained our nation’s hard working farm families through good and bad times.

October is National Cooperative Month, and we're happy to spotlight several projects throughout the month that have been supported through USDA Rural Development's Cooperative Services. Jaime Villalaz, a business development specialist with the Latino Economic Development Center in Minneapolis, Minn., provided us with a glimpse into how USDA funds are being used to promote agriculture and cooperative development in the Latino community in Minnesota. 

In 2011, staff from the Latino Economic Development Center (LEDC) in Minneapolis met with about 30 residents of Long Prairie, Minn., to discuss starting a farmer cooperative that would improve their income and promote economic development. After meetings throughout that winter, the cooperative became a legal entity in April 2012. The eight original members each contributed $250 to start the Agua Gorda Cooperative.

The first week of August brought an important milestone for communities in Connecticut. I was pleased to be on hand as our Governor, Dannel Malloy, held a ceremonial bill signing for Senate Bill 458. This legislation is significant because it changes the maturity date for municipal bonds issued in conjunction with any water, waste, or community facility loan from USDA Rural Development from an original 20 years to a 40 year bonding term. Of the 169 towns in the state of Connecticut, 69 of those have populations under 10,000. This makes them eligible to receive loans from USDA Rural Development through our community facilities program. This act will make repayment on such loans affordable for small towns that are in need of essential community facility additions and improvements.

For Elsa Torres, farming is more than just a job or a livelihood. It’s an inspiration.

Ever since she was a young girl, Elsa can remember working in orchard fields with her father, Jose Torres. It was something she loved and cherished. “My father is the person I admire the most,” said Elsa. “He came from Mexico with nothing and for 25 years he worked on an orchard that he now owns. He didn’t start out with a formal education.  But now he’s a business owner.  He’s an example of the American dream and how someone who works hard can become a success.”

"We wouldn't be all that we are today if it weren't for USDA”, said Verne Hansen, Board President of the Faulkton Area Medical Center (FAMC).  With help from Rural Development, South Dakota, FAMC leveraged $5 million in loans and loan guarantees to build a state-of-the-art 12-bed facility serving as the Critical Access Hospital for Faulkton (population 744) and the surrounding community.  This new facility has yielded a 500% increase in patient revenues and improved the level of care. Due to overwhelming demand, FAMC is planning an expansion to continue meeting the health care needs of rural South Dakotans.

Recently, South Dakota’s Rural Development office teamed up with the Department of Health and Human Services, the State of South Dakota, the South Dakota Association of Healthcare Organizations, Dakota State University, and East River Electric Cooperative to bring together providers and funders to generate concrete plans improving access to rural health care in our state. One concrete outcome was workshop on the collaborative Rural Health Financing Initiative, where we focus on maximizing and utilizing the resources we currently have at our disposal to best meet the needs of today and the future. To illustrate the path to success, Faulkton Area Medical Center CEO Jay Jahnig gave a first-hand example of how USDA was able to provide the financial support that allowed FAMC to significantly increase its quality and quantity of service to the community.

To me, the phrase 'economic development' is more than a buzzword – and that was reinforced during an all-too-brief trip to western South Dakota. It's easy to get caught up in the policymaking and program implementation in Washington, D.C., and I find great value in getting to the field so I can see exactly how these programs are helping our local stakeholders and partners, small business lenders, and entrepreneurs make investments in the local economy.

I started out the day in Sturgis, where we met up with Legends Suspensions owner Jesse Jurrens. With the backing of two Business & Industry Guaranteed Loans, Jesse has shaped and changed the sport and lifestyle of motorcyclists globally. With his lean and efficient business model, he's become a global force in motorcycle suspensions. We also visited Landsport, another Sturgis-based business that specializes in manufacturing and marketing aluminum loading ramps, drop deck ramps, service ramps, and other custom applications. Landsport used a Business & Industry guaranteed loan to expand its production and work staff. After meeting with the staff at both facilities, I walked away knowing these operations have a long-term vision for success and growth.  USDA and our lending partners helped give them the freedom to execute that vision.

Recently, I visited the Habitat for Humanity homes on Cape Cod, Massachusetts in celebration of National Homeownership Month, a time to recognize the important role that housing plays in the economy. The construction of these homes was made possible through loans from USDA Rural Development (RD).

The partnership between USDA Rural Development and the Cape Cod Chapter of Habitat for Humanity continues to help provide numerous low-income families with safe, affordable, and well-built homes. USDA Rural Development and the Cape Cod Chapter of Habitat for Humanity first partnered in 2011. In FY 2013, USDA Rural Development financed four out of five of the Habitat homes built on Cape Cod, and they are currently on track to finance eight more Habitat homes being built on Cape Cod in FY 2014.

More than 50,000 rural families have become homeowners using their “sweat equity” as their down payment on an affordable USDA mortgage.

What is “sweat equity?” These families have helped build their own homes and provided most of the construction labor with guidance from a qualified construction supervisor through USDA’s Mutual Self-Help Housing Loan Program. The “sweat equity” — the savings in labor costs — reduced the amount of the home loan and made the monthly payments affordable.

June is National Homeownership Month. USDA is celebrating the self-help program and the 50,000+ rural families who have invested in a home of their own through self-help housing.

In rural areas, financing a home can be difficult. There often aren’t as many lenders serving rural locations as there are in more densely populated parts of the country. Also, some rural lenders may require a larger down payment or a higher interest rate to secure a loan. Fortunately, USDA Rural Development partners with more than 3,000 housing lenders to make sure low- and moderate-income rural families have a chance to enter the housing market.

Through the Section 502 Guaranteed Housing Loan Program, USDA Rural Development backs loans made by approved lenders for the purchase, refinance, renovation, or repair of an owner-occupied residence. The USDA guarantee allows lenders to provide 100-percent financing on a safe, low-interest, 30-year mortgage.