USDA Rural Development can provide funding for all types of community improvement projects on the Kenai Peninsula from loans for home purchase or repair, to business loans, to community projects. Funding for Fiscal Year 2010 is now in place for all programs.

"In addition to our regular program funds, we also have funding available through the American Recovery and Reinvestment Act to guarantee business loans, finance housing purchases and provide for infrastructure that benefits local residents," said Kenai Area Director Michelle Hoffman in a press release.

Hoffman noted that available Recovery Act funding must be committed to projects by Sept. 30. "This is an ideal time to apply for funding, but application processes can take time, so it is important for interested prospective applicants to contact our office soon."

Home loans for purchase do not require a down payment or mortgage insurance. Through Rural Development's housing program, income eligible applicants may qualify for a direct, subsidized loan to purchase a new or existing home which meets program standards. The current interest rate is 4.875 percent before subsidy.

Rural Development also has a program available to provide needed home repairs and fund energy efficiency projects. Income eligible homeowners may qualify for long- term home repair loans up to $20,000 at a 1 percent interest rate.

Grants up to $7,500 are available for senior home owners, age 62 and older, to complete repairs for weatherization; to improve health and safety standards; or improve accessibility.

Applicants with income above the limits for direct loans may qualify for a Rural Housing guaranteed loan and should contact the mortgage lender of their choice for this zero down program.

Applicants interested in the business loan guarantees should contact the commercial lender of their choice. Rates and terms are negotiated with the lender. The lender applies to USDA for the guarantee. Business loan guarantees can be used for business acquisitions, expansion, start-up costs, working capital, refinancing or other costs involved in the business.

USDA RD's Community Facility Program can provide low interest loans and grants to municipalities, tribes or nonprofits for community-based projects.

The USDA Rural Development office is located at 110 Trading Bay Drive, Suite 160, in Kenai. It is open from 8 a.m.-4:30 p.m. Monday through Friday. Potential applicants, Real Estate agents and local lenders are invited to call (907) 283-6640 extension 4 for more information.