Despite the national recession, Governor Edward G. Rendell stressed the importance of investing in key industries today as he announced nearly $5 million in loans and guarantees for 17 agriculture and tourism projects in 13 counties.

The Governor said investing in these two industries, which support approximately 1.4 million jobs in the state, is essential because doing so positions each sector to grow as the economy rebounds. The budget Governor Rendell proposed in February institutes difficult cuts, but still provides crucial investments that will help each industry to expand.

He warned that a proposed budget by Senate Republicans would cripple agriculture and tourism by cutting $14.5 million from what the Governor proposed for programs that aid the industries. The Senate's plan would cut funding to the Department of Agriculture by nearly $9 million and support for tourism marketing programs by $5.5 million.

"The commonwealth remains committed to supporting our two largest industries: agriculture and tourism," said Governor Rendell. "Pennsylvania, like the rest of the nation, is experiencing tough times because of the recession. That makes this exactly the wrong time to completely abandon key industries that help to put food on our tables, bring hundreds of millions of dollars into the state, and keep our people working. We must continue to invest in these industries in a prudent manner so that when the economy turns around, we're in a position where we can emerge stronger than ever.

"This $4.9 million investment, which will leverage an additional $14.7 million in private funding, does that. Investing in these projects will help to encourage job growth and expansion in Pennsylvania's rural communities."

The Commonwealth Financing Authority, or CFA, approved the loans and guarantees at its May 13 meeting. The funding will help farmers with land, livestock and new equipment purchases, and finance the construction on a project that will help attract tourists.

For more information on state investment programs available through the Department of Community and Economic Development, call 1-866-466-3972 or visit .

The Rendell administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell's initiatives and to sign up for his weekly newsletter, visit .

EDITOR'S NOTE: The following projects were approved by CFA:

Adams County

* $200,000 agriculture loan to Bream and Bear Operating Co. LLC for the $400,000 purchase of 28 acres of farmland for the operation of a cold storage facility and packing house in Biglerville.

Blair County

* $1.3 million machinery and equipment loan to Penn England LLC for the $2.8 million purchase of dairy cows and farm equipment in Williamsburg.

Bradford County

* $200,000 agriculture loan to Triple H. Farms Inc. toward the $1.1 million construction costs of a swine nursery barn in Canton.

Cambria County

* $35,000 agriculture loan to Kelly Hite and Gena Hite toward the $70,000 purchase of a Massey Ferguson Sunflower No-Till Grain Drill in Ebensburg.

Chester County

* $105,000 agriculture loan to Walmoore Holsteins Inc. toward the $438,000 construction costs of building a milking parlor in Cochranville.
* $200,000 agriculture loan to Nolan and Nori King to purchase a 54-acre, $805,000 farm for use as a crop farm in West Fallowfield Township.

Columbia County

* $180,000 agriculture loan to Kirk and Marian Lehman to purchase a $385,000, 58-acre tract of land for use as a crop farm in Bloomsburg.

Indiana County

* $307,040 machinery and equipment loan to Fabin Brothers Farms toward the $615,040 purchase of machinery and equipment for the farm's new soybean processing plant in Indiana.

Lancaster County

* $200,000 agriculture loan to Jenna Bleacher for the purchase of a 163-acre, $1.5 million farm in Millersville.
* $200,000 agriculture loan to Christopher and Dawn High toward the 22-acre, $658,000 purchase of a broiler farm in Ephrata.

Lawrence County

* $59,900 agriculture loan to James and Jane McDowell toward the $128,400, 71-acre purchase of land in New Castle.

Lebanon County

* $152,500 machinery and equipment loan to Luke and Denise Brubaker to use toward the $306,000 purchase of a new forage harvester in Myerstown.
* $200,000 agriculture loan to Sidney and Katie Nolt toward the $454,000 construction cost to renovate a dairy barn and upgrade milking equipment in Richland.

Lehigh County

* $1 million tourism loan guarantee of a loan totaling $2 million from the First Savings Bank of Perkasie. The loan guarantee will be used to finance the purchase of land and machinery and equipment, as well as the construction of a truck stop, gas station, and convenience store.

Mifflin County

* $199,750 agriculture loan to Roderick Kauffman and Gloria Kauffman to construct a $399,500, 13,640-square-foot freestall barn in Reedsville.

Snyder County

* $200,000 agriculture loan to Wilmer and Kathy Horst toward the construction cost of a 25,888-square-foot, $550,000 organic layer house for their poultry farm in Mount Pleasant Mills.
* $135,000 agriculture loan to Maneval Poultry towards the $285,000 construction of a broiler house in Mount Pleasant Mills.

CONTACT:
Theresa Elliott (DCED)
717-783-1132

Michael Smith
717-783-1116