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Source: USDA, 8/24/21
United States Department of Agriculture (USDA) Deputy Under
Secretary for Rural Development Justin Maxson today announced that USDA is on
track to provide a record level of support for rural working capital and other
business capital needs in fiscal year 2021.The Department has invested $1.2 billion in loan guarantees to help rural businesses in 41 states, Guam and the Virgin Islands. These investments – made through the Business and Industry Loan Guarantee Program and the Business and Industry CARES Act Program – are expected to create or save more than 12,000 jobs for people in rural areas. “Under the leadership of President Biden, Vice President Harris and Agriculture Secretary Vilsack, USDA is expanding access to capital to prioritize rural economic development,” Maxson said. “As we continue to respond to the COVID-19 pandemic and restore the economy, USDA remains committed to helping rural businesses create job opportunities so rural Americans can build back better and stronger than ever before.” USDA has invested $811 million through the Business
and Industry (B&I) Loan Guarantee Program since the start of the
current fiscal year. This assistance has helped businesses create or save more
than 6,000 jobs in rural areas. Investments under the B&I program are 36 percent higher
than they were this time last year. Applications have increased by 44 percent.
These increases are due in part to a series of program improvements USDA
adopted under the new OneRD Guarantee Loan Initiative. This initiative increased the USDA loan guarantee to 80
percent for investments greater than $5 million. The previous guarantee percentages
were 70 percent for loans less than $10 million and 60 percent for loans
greater than $10 million. This improvement has made the program more attractive
to capital-intensive businesses such as manufacturing companies. USDA also invested $380 million in rural businesses through
the Business
and Industry CARES Act Program, which was established under the Coronavirus
Aid, Relief, and Economic Security (CARES) Act. This assistance has helped
rural businesses create or save more than 6,000 jobs in rural areas. These investments USDA is announcing today are helping rural
businesses and workers in Alaska, Alabama, Arkansas, Arizona, California,
Colorado, Delaware, Florida, Hawaii, Georgia, Iowa, Idaho, Illinois, Indiana,
Kentucky, Louisiana, Maryland, Michigan, Minnesota, Missouri, Mississippi,
North Carolina, North Dakota, Nebraska, New Jersey, New York, Nevada, Ohio,
Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas,
Vermont, Virginia, Washington, Wisconsin, West Virginia, Wyoming, Guam and the
Virgin Islands.
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