Earlier this week the U.S. Rural Infrastructure Opportunity Fund was unveiled at the first-ever White House Rural Opportunity Conference.  CoBank, a national bank that caters to rural America, pledged the initial $10 billion investment.  It is hoped that this “anchor” investment will trigger other investment firms to participate in the new fund.

For its part, the United Stated Department of Agriculture (USDA) will continue investing through its Rural Development grants and loans program, but sees the new investment fund as a way to leverage its own investments and expand projects into rural areas.  Additionally, USDA Secretary Tom Vilsack is placing the agency into the “matchmaking” role, matching available capital investments with the communities, business-owners, and projects that need resources.  For projects that have greater financial risks and limited access to lending resources, the USDA can play an important role as a guarantor of financing. 

According to Secretary Vilsack, the hope is for innovation both in the types of projects, and the variety of funding sources and streams.  While key projects will be largely geared toward rural community infrastructure projects, other types of projects geared more towards private enterprise will also be considered.    The fund’s managers will be seeking innovative and creative projects and infrastructure improvements to boost rural communities.  Each federal agency that is involved in the rural economy has been directed to find ways to improve rural communities through job creation, improving infrastructure, and revitalizing the rural way of life.

RCRC and our federal advocates are working closely with the various federal agencies involved in this initiative to learn more about this rural economic development opportunity and will share additional information at it becomes available.