Source:  USDA, 11/6/09

Agriculture Secretary Tom Vilsack today announced $56.2 million in loan guarantees to assist 12 rural businesses though funding made available by the American Recovery and Reinvestment Act.

"The Recovery Act funds announced today will help businesses get access to the capital they need to expand their businesses and bring stability to America's small cities and towns," Vilsack said. "President Obama and USDA are committed to building strong rural communities by helping businesses grow so we can renew and revitalize our country."

In Bagley, Minn., USDA is guaranteeing a $7 million loan to TEAM Industries for working capital. TEAM Industries, established in 1986, is a manufacturing and design company specializing in drivetrain products. Recently, the company has experienced a steep drop in orders. Their reaction to reduced sales has been swift. TEAM diversified their end product and significantly increased their customer base, resulting in more than 30 new customers, new patented products and increased sales.

In Asheville, N.C., a loan for $5 million will be used to finance the construction of a wood pellet manufacturing facility. The wood pellets can be used as a renewable source of heat and power for various industries.

The funding is being made available through USDA Rural Development's Business and Industry Guaranteed Loan Program. Eligible applicants include private businesses, cooperative organizations, corporations, partnerships, non-profit 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.

The 12 projects announced today will leverage $5.6 million in private sector investments in addition to the USDA Rural Development assistance.

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 .

Below is a list of lenders that will be assisting rural businesses. The loan guarantee is contingent upon borrowers meeting the conditions of the loan agreement.

Alabama

• Community Bank & Trust, Union Springs - $1,350,000 loan to refinance debt for a specialty care nursing home.

Maine

• Norway Savings Bank, Portland - $325,000 loan to fund the construction of a crematory.

Minnesota

• Midwest Minnesota Community Development Corporation, Detroit Lakes - $7,000,000 loan to refinance debt at an auto parts manufacturer.

Nebraska

• State Bank of Table Rock, Pawnee City - $93,600 loan to purchase bottling equipment for a winery and microbrewery
• Adams Bank & Trust, Grant - $5,700,000 loan to allow a telecommunications facility expand telephone, internet, and video services to residential customers.

North Carolina

• Four Oaks Bank & Trust, Zebulon - $5,000,000 loan to a new business that will use woody biomass to create a renewable energy source
• Capital Bank, Raleigh - $2,670,000 loan to an apparel manufacturer for debt refinancing.

Ohio

• National Bank of Oak Harbor, Oak Harbor - $5,900,000 loan to refinance debt held by a manufacturer and retailer of lumber and building materials
• Richland Bank, Mansfield - $6,750,000 loan to refinance debt at an assisted living facility.

Oregon

• United Western Bank, Portland - $10,000,000 loan to refinance debt and purchase equipment at a forestry products business.

Wisconsin

• Heartland Business Bank, Sheboygan - $10,000,000 loan to a food processing company for the purchase of new equipment.
• Hometown Bank, Sheboygan - $1,431,500 loan for the purchase of new equipment at a high tech machining company.

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 .