[Code of Federal Regulations]
[Title 7, Volume 11]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1703.11]

[Page 26]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1703--RURAL DEVELOPMENT--Table of Contents
 
      Subpart B--Rural Economic Development Loan and Grant Program
 
Sec. 1703.11  Policy.

    (a) It is RUS's policy that borrowers use the Rural Economic 
Development Loan and Grant Program to promote projects that will result 
in a sustainable increase in the productivity of economic resources in 
rural areas and thereby lead to a higher level of income for rural 
citizens.
    (b) It is RUS's policy that borrowers promote economic development 
in rural areas and job creation projects that:
    (1) Are based on sound economic and financial analyses; and
    (2) Take a long-term perspective.
    (c) It is RUS's policy to direct the funds under this program to 
projects which are located in, or will primarily benefit, those rural 
areas that are experiencing the greatest economic hardship.
    (d) It is RUS's policy to encourage economic development in rural 
areas and job creation projects without regard to service area.
    (e) It is RUS's policy to encourage borrowers to make cushion of 
credit payments.
    (f) It is RUS's policy to maintain liaisons with officials of other 
Federal, state, regional and local rural development agencies to 
coordinate this program with other rural economic development programs.