Linda Heitzman-Powell, director of Youth Extended Services Inc., learned recently that the U.S. Department of Agriculture has approved a $568,300 loan to establish a day care center and preschool.

Tim Rogers, rural development specialist at the USDA in Lawrence, said the loan will cover the purchase of land and construction of a 4,500-square-foot building. The 30-year loan carries a 5.875 percent interest, Rogers said.

The 76-student center will care for children ages 2 weeks to 13 years, Heitzman-Powell said.

Heitzman-Powell said she’s looking forward to moving ahead with the project.

“We’ve already been working on this for a year and a half, trying to satisfy all the requirements,” she said.

Now that USDA has obligated the funds, the next step is to find a lending institution to handle interim financing.

“What the USDA likes to do is have a local lending institution fund the money up front so we can go to our local bank and draw out the funds,” Heitzman-Powell said. “At the completion of the project, the USDA comes in and buys out the loan.”

Additionally, Heitzman-Powell said she’s applied for a $120,000 grant from the state Social and Rehabilitation Services.

“They’ve given us preliminary approval for starting-up funds and for the first three months of operating maintenance,” she said.

Heitzman-Powell, who is a working toward her doctorate in developmental and child psychology at the University of Kansas, said she hopes to break ground on the project in August.

But that hinges on finding an acre or two to purchase.

“The success of any community business is dependent on management and location,” she said. “We have an excellent management structure in place. We still need a good location in close proximity to the school.”

Others working on the project include Carrie Koch, an in-home provider, Donna Schupp, representing Parents as Teachers, Cindy Williams, K-State extension, Carmen Collins, Stan Hearnley, architect, and George Swisher, attorney.

Linda Heitzman-Powell and her husband, Matthew Powell, moved to a home northeast of McLouth two years ago. Their three sons, Christopher, 15, Aaron, 11, and Jonathan, 6, attend public school in McLouth.