LIHU'E, Kaua'i — The Kaua'i Island Utility Co-op yesterday loaned Kaua'i Hospice $300,000 under a new U.S. Department of Agriculture revolving loan fund that will continue to produce money for community development over time.

Under the program, the Rural Utilities Service gave the utility a $300,000 grant which was loaned to Kaua'i Hospice at zero interest. As the money is paid back, it will enter a revolving loan program, with the money becoming available for other community projects.

The utility also hopes to participate in a second USDA program, under which KIUC would borrow up to $750,000 in federal money at no interest and could loan it out as a no-interest pass-through loan to community groups.

That funding would not enter a revolving program, but would be paid back to the federal government as payments are made, said Faye Akazaki, KIUC vice president for member services.

Both loan programs are designed to assist rural communities in a range of programs, including helping nonprofits, promoting education, medical care, business development, housing and more.