PROGRAM ANALYSIS 



RURAL DEVELOPMENT UNIT PROGRAM 



Goal 



To make loans to farmers, ranchers, and farm oriented youth organ- 

 izations, to improve rural communities where the majority of people 

 are of low income. 



Objective 



The Rural Development Unit provides financial assistance in the 

 form of loans and or grants to the children of low-income families to 

 initiate worthwhile projects; also, participating loans are made to 

 purchase or improve farms ranches, and provide assistance when appro- 

 priate for Rural Development projects; and financial assistance to 

 students to attend college or Vocational Technical Schools, as members 

 of future farmers, 4-H groups or other farm youth organizations. 



Evaluation 



Twenty nine Junior Livestock Loans have been made for about $100,000, 

 12 Participating Real Estate Loans have been made for $180,000 since the 

 Spring of 1973. As of January 31, 1974, we had 39 Insured Notes with an 

 outstanding principle balance of $828,821. There are seven Direct Real 

 Estate Loans with an outstanding balance of $24,140 that were made with 

 Rural Rehabilitation Fund. 



We have made a total of 41 loans since the Spring of 1973, we 

 have on hand 39 Insured Notes and seven Direct Real Estate Loans. 

 This makes a total case load of 87 now being serviced by this division. 

 We have not made a Student Loan as of this date but have a $2,000 loan 

 in the process of being approved. One of our problems at the present 

 time is the shortage of funds on hand to make any new loans. The 

 interest on Insured Notes is at a lower rate than the current interest 

 rate. Therefore, we will probably be unable to sell any of our Insured 

 Notes until such a time as the interest rate becomes more favorable so 

 that purchasers may become more interested in purchasing the Insured 

 Notes we have on hand. Until we are able to sell some Insured Notes, 

 the only funds we will have for making loans will be if some of our 

 present loans are paid in full and when payments are made on our current 

 loans. 



We had hoped that adequate funds would be available so that we 

 could make a few student loans this Fall. We believe that progress 

 has been made in reinvesting the funds that were invested in F.H.A. 

 Insured Note Program. 



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