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MARQUETTE - The U.S. Department of Agriculture Rural Development office distributed over $1 billion to Michigan citizens in fiscal year 2009 through housing, business, utility, construction and telecommunications grants and loans.

The record breaking influx of money was helped by funds from the American Recovery and Reinvestment Act, and USDA Rural Development officials said there's still money available for Upper Peninsula residents.

On Thursday officials with USDA Rural Development held a workshop in Marquette with direct video feeds to Houghton, Sault Ste. Marie, Ironwood and Escanaba.

"Rural development, whether large or small, is not just job creation," said Wendy Sexton, a local USDA representative. "You can create all the jobs you want but if you don't have the supporting community infrastructure, to support those people who want to come to your community or keep the people you have, you're going to fail."

Sexton said USDA Rural Development provides financing through three types of programs: guaranteed loans, in which a bank makes the loan and USDA backs it against loss; direct loans, where USDA provides funds directly to clients; and grant programs.

Program areas include rural housing, community facilities, businesses, cooperatives and utilities.

Loan funds are used to purchase, purchase and repair or build a single family home. A single family home may also be a new manufactured home, modular, townhouse, condominium or a duplex.

Sexton said communities have to have a population below 20,000 to qualify as rural. She said every community in the U.P. qualifies, even the city of Marquette. In determining eligibility, the USDA uses 2000 census data, which lists Marquette's population just below 20,000, she said.

Under the direct loan program, very-low and low-income applicants who cannot qualify for other credit are eligible. The program offers 100 percent financing, with no down payment, at a fixed interest rate over a 33 year term - up to 38 years for very low income applicants.

Applicants mush have good credit and sufficient income to repay the loan and other debts.

The single family guaranteed loan is similar, except its a 30-year fixed-rate loan and the interest rates are determined by the lender.

The USDA also offers home repair loans to very-low-income applicants. Applicants can get up to $20,000 and pay it back up to 20 years at a fixed 1 percent interest rate.

"We get calls from young people who bought substandard housing and are working minimum wage jobs and calling up for help for assistance," Sexton said. She said as long as they hold the title and and their income falls within USDA guidelines, they are eligible for the repair loan. She said the repair loan is not available for rental units.

On Thursday, USDA Rural Development officials also spoke about rural business loans and officials from the Small Business Administration and Economic Development Authority also gave presentations.

Tom Baldini, district director for U.S. Rep. Bart Stupak, D-Menominee, said the video conference was done to make it convenient for as many U.P. residents as possible.

"Because of these programs and more money being put into the stimulus programs, we wanted to make sure everybody had the opportunity to have access, so we went to the five sites around the U.P.

"Most people think USDA is just water and sewer programs, but as you saw here this morning there are programs for housing, business and things of that nature."

For more information visit www.rurdev.usda.gov/mi