Agriculture, Rural Development, Food And Drug Administration, And Related Agencies Appropriations Act, 2010

Floor Speech

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Mr. GRASSLEY. Mr. President, I want to speak in opposition to the amendment of the Senator from Arizona to strike funding for Iowa State University's Rural Vitality Center.

According to the Small Business Administration, Iowa historically has ranked near the bottom nationally in business startups. Small businesses with less than five employees account for 86 percent of Iowa businesses, yet these enterprises increasingly are bypassed by existing entrepreneurial assistance and capital networks, particularly in nonmetro areas. The Iowa Rural Vitality Project is Iowa State University's response to help foster innovation and economic vitality in rural Iowa.

The Vitality Center engages with academic institutions, community leaders, and economic development agencies to leverage resources. The center provides statewide leadership by building community capacity for assisting and supporting entrepreneurs and community foundations.

During the past year, the Vitality Center has led an effort to organize a statewide microloan foundation and complementary community microenterprise development initiatives. The program targets low- and moderate-income people and underserved rural areas. The microloan program helps fund businesses that don't quite meet the commercial lenders' requirements for credit, which is even more important during these tight lending times. This initiative is creating two to three new business startups per month that would not otherwise exist.

According to Iowa State University, the funding approved for fiscal year 2010 will be used to encourage the development of 20 community-based entrepreneurial development systems, allow for expanded philanthropic capacity in 10 community foundation projects, and research new strategies for enhancing rural vitality for rural and underserved communities. Their program, with this funding, will help continue their creation of jobs across the State.

The Feds aren't the only ones supporting this center. They have received grants from private sources and the State legislature for their efforts. It also receives a $1 for $1 match from each community demonstration project for approximately 10 projects, and approximately a $2 non-Federal to $1 Federal match from Iowa State University on the center operations budget.

I urge my colleagues to oppose the amendment to strike the funding for this center.

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