Webster City Awarded USDA Grant

Van Diest Family Health ClinicWebster City has been awarded a $1,000,000 loan and $300,000 grant through the U.S. Department of Agriculture’s (USDA’s) rural economic development loan and grant program. Webster City will contribute $60,000 in matching funds to the award for a total of $1,360,000 that will be loaned to Van Diest Medical Center (VDMC) for the new clinic and technology upgrades. The project includes a 16,400 square-foot addition for a new medical clinic, a meeting room and a future pharmacy, along with the implementation of a new, extensive medical records system throughout the hospital and satellite clinics. 

This rural economic development loan and grant program provides funding to rural projects through eligible, local utility organizations and is administered through USDA’s Rural Development mission area.

Under the loan program, USDA provides zero-interest loans to local utilities which they, in turn, pass through to local businesses (ultimate recipients) for projects that will create and retain employment in rural areas. The ultimate recipients repay the lending utility directly and the utility is responsible for repayment to USDA.

Under the grant program, USDA provides grant funds to eligible, local utility organizations which use the funding to establish revolving loan funds. Loans are then made from the revolving loan funds to projects that will create or retain rural jobs. 

As VDMC repays its loan back to the Webster City, $360,000 of the loan payment will go into a city-managed revolving loan fund and be used to spur additional economic development projects in the city, county and region. Other repaid loan funds to the city will be paid back to the USDA as part of the loan agreement being announced today.

"On behalf of the Administration and Board of Trustees at Van Diest Medical Center, I wish to thank the U.S. Department of Agriculture and the City of Webster City for this funding opportunity to advance the accessibility of healthcare in Hamilton County, Iowa. Through collaborative efforts, not only does the hospital benefit as a loan and grant recipient, but the reinvestment in rural Iowa economies is an extremely positive and much-needed opportunity to further enhance area growth and development."

Lori Rathbun, CEO

Van Diest Medical Center


USDA Contact
Darin Leach
515-284-4747

Webster City Contact
Bill Demuth
515-822-2330