PRESQUE ISLE – The U.S. Department of Agriculture Rural Development has grant and loan funds available to assist owners of residences and businesses damaged by the recent flooding.

Areas that have been declared by President Bush as federal disaster areas will receive priority consideration during the application process. These are Aroostook County and parts of northern Penobscot County.

USDA Rural Development can provide assistance to homeowners whose residences were damaged by this spring’s flooding. The Single Family Housing 504 Loan Program can be used for home repair or rehabilitation and provides funds at 1 percent interest to those who qualify. Loans of up to $20,000 are available with a payback period of up to 20 years.

A Single Family Housing 502 Direct Loan, also available, provides housing assistance to families that fall within income guidelines. The loan can be used to purchase an existing home, repair an existing home, or for construction of a new home. The amount of the loan is based on what the applicant can afford and can be up to $181,800 for 33 years. Payment subsidy is available for qualified applicants and can reduce payments to as low as 1 percent.

Grant funds are available to rural public entities that qualify for assistance. Under the Rural Business Enterprise Grant program, grants are available for rural projects that finance and facilitate development of small and emerging rural businesses, and to help fund distance learning networks, adult education, and employment programs. Rural public entities such as towns, communities, state agencies, and authorities, Indian tribes, and rural private nonprofit corporations are eligible to apply for funding. RBEG funds are available until July 18 for designated disaster areas.

USDA Rural Development also offers funds for community assistance facilities such as rural schools, libraries, day care centers, hospitals, fire and rescue and emergency centers, fire, and police stations, public buildings, medical and assisted living centers. Assistance is also available for infrastructure such as water and waste water systems.

For information about assistance, call 800-352-8963, ext. 161, or e-mail rdhelps@me.usda.gov with the subject: Disaster Assistance. Be sure to include your name, phone number, town in which you live, as well as program you are interested in learning more about.

Further information on rural programs is available at a local USDA Rural Development office or visit USDA’s Web site www.rurdev.usda.gov/me.