ASHLAND – The United States Department of Agriculture has given its backing to a guaranteed loan of $318,000 for the Ashland Care Givers Association.

The conditional commitment is being provided by the USDA’s Rural Development Agency. The loan is expected to be made available through Katahdin Trust Co. in Presque Isle.

The funds will be used to support the construction of a new six-bed residential care facility for the elderly.

The project is a collaborative effort on the part of the Federal Home Loan Bank of Boston, Rural Development, Katahdin Trust Bank and the Maine State Housing Authority. MSHA is providing a grant of $110,000 and the Federal Home Loan Bank of Boston is awarding a grant of $54,000 toward construction.

U.S. Rep. John Baldaccci announced the loan this week.