Release No. 0346.09
Contact:
Office of Communications (202) 720-4623
AGRICULTURE SECRETARY VILSACK ANNOUNCES $1.7 BILLION IN LOAN ASSISTANCE AVAILABLE NOW TO HELP RURAL BUSINESSES
Loans Provided through Recovery Act Funds will Help Strengthen Rural Communities Throughout America
WASHINGTON, July 29, 2009 - Agriculture Secretary Tom Vilsack today announced that USDA is now accepting applications for up to $1.7 billion to fund projects that help spur business activity and economic growth in rural communities. This infusion of money from the American Recovery and Reinvestment Act into rural business is designed to create and save jobs and help rural communities grow and prosper.
"The Recovery Act funds announced today will help businesses get access to the capital they need to launch and expand their businesses and help bring additional jobs to America's small cities and towns," said Vilsack. "President Obama and I are committed to building strong rural communities by helping businesses grow so we can put people back to work."
The funding announced today will be made available through USDA Rural Development's Business and Industry Guaranteed Loan program, which supports the development of private businesses. Eligible applicants include cooperative organizations, corporations, partnerships, nonprofit groups; federally recognized Indian tribes, public bodies and individuals. The funds will be targeted to creating and retaining quality jobs and serving difficult to reach populations, and areas hardest hit by the current economic downturn.
USDA will accept applications for this Business and Industry Guaranteed Loan program until Sept. 15, 2010, or until all funds are expended. Recovery Act funding will be available through Sept. 30, 2010. For information on eligibility criteria and for application assistance, please contact your state Rural Development office, or visit www.rurdev.usda.gov for a listing of all state offices.
Past examples of USDA Business and Industry Guaranteed Loans include:
A&C Sawdust in Crivitz, Wisc., received a $3.48 million guaranteed loan to refinance the costs to make real estate improvements and buy a wood grinder and wood dryer to expand business operations. A&C Sawdust was formed 40 years ago as a trucking business. The family-owned company also has a division, L&M Sawdust, that converts green sawdust into livestock bedding that is sold to local farmers. A third unit of the company, L&M Custom Drying, LLC, converts green sawdust into biomass pellets, a renewable fuel source. The funding provided by USDA Rural Development is expected to save or create 23 jobs in an area of the state that has lost jobs due to the closing of several paper mills.
Pennsylvania-based Keystone Potato Products, LLC, used a $4.9 million USDA Business and Industry Guaranteed Loan to develop an 86-acre site, construct a potato processing facility, purchase new machinery and equipment, and finance start-up costs. More than $2.8 million was private investment. This facility, which turns off-grade potatoes into flakes and other products, has reduced transport costs for potato suppliers and also created a new market for potato products. More than 40 jobs were created as a result of funding from this project.
More information about USDA's Recovery Act efforts is available at www.usda.gov/recovery. More information about the Federal government's efforts on the Recovery Act is available at www.recovery.gov.
USDA Rural Development's mission is to increase economic opportunity and improve the quality of life for rural residents. Rural Development fosters growth in homeownership, finances business development, and supports the creation of critical community and technology infrastructure. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA Rural Development's web site at www.rurdev.usda.gov.
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