Government-backed loans are being made available to help stimulate home ownership and the economy in rural America, Vice President Joe Biden said Wednesday.

Biden and Agriculture Secretary Tom Vilsack announced the distribution of the first wave of the $10 billion at a fire station in Pikeville, N.C., where American Recovery and Reinvestment Act funds will provide direct operating loans to farmers and ranchers and single-family housing loans to rural residents, a White House news release said.

'With these tough economic times, home-ownership is a goal that's out of reach for many people -- but the Recovery Act is changing that,' Biden said. 'By dedicating Recovery Act resources to our rural communities, we will be creating more jobs and making it possible for thousands more families in some of our hardest hit areas to reach that goal of owning a good, safe home.'

Funding initially will provide 15,000 rural families with $1.76 billion in loan guarantees for home-ownership financing, and is expected to create or save about 7,500 jobs, the White House said. Of the rural housing funds, $7 billion is available to states and $3 billion is being held in reserve for higher need areas.