Source:  USDA, 1/13/10

Agriculture Secretary Tom Vilsack today announced $449 million in loan guarantees to assist 128 rural businesses through funding made available by the American Recovery and Reinvestment Act. The funding is being made available through USDA Rural Development's Business and Industry Guaranteed Loan Program. Altogether, $1.7 billion is available to businesses across the country through Recovery Act Business and Industry Guaranteed Loan Program funding.

"A number of the Recovery Act funds announced today are supporting USDA's 'Know Your Farmer Know, Your Food Initiative' by providing capital to rural business that support and market locally produced foods in communities throughout the country," said Vilsack. "We can revitalize rural communities and spur economic opportunity by building infrastructure to strengthen local food systems and creating a stronger link between local food production and local consumption."

For example, Prairieland Foods, LLC, in Hallam, Neb., was selected to receive a $650,000 loan to enable the locally owned and operated dairy processing facility to meet the growing demand for a local, source-verified, sustainable supply of dairy foods and ingredients. The facility will also help diversify the market exposure for milk produced at local dairies, including partner company Prairieland Dairy, LLC. The loan will be used to purchase adjacent property for future expansion to include producing cheese, yogurt, ice cream, and other dairy foods and ingredients.

In Holly Springs, N.C., My Way Tavern, a local family-owned restaurant, has been selected to receive a $204,000 loan to help with start-up costs of their neighborhood restaurant. The restaurant plans to purchase at least 10 percent of its produce from local farmers.

USDA's 'Know Your Farmer, Know Your Food' initiative was launched in September. It emphasizes the need for a fundamental and critical reconnection between producers and consumers and includes such major agricultural topics as supporting local farmers and community food groups; strengthening rural communities; enhancing direct marketing and farmers' promotion programs; promoting healthy eating; protecting natural resources; and helping schools connect with locally grown foods. The initiative builds on the 2008 Farm Bill, which provides for increases and flexibility for USDA programs in an effort to promote local foods.

The funding announced today 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.

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 borrowers receiving loan awards. Funding is contingent upon borrowers meeting conditions in the loan agreement.

North Carolina

* My Way Tavern, LLC.; Four Oaks Bank & Trust; $204,000

* Gibson Management, LLC; Four Oaks Bank & Trust Loan Operations; $576,000

* Troy Lumber Company; The Fidelity Bank; $5,000,000

* Individual; The Little Bank; $750,000

* Schwartz Family Properties NC, LLC; Fifth Third Bank; $2,325,000

* United Canvas & Sling, Inc.; Fifth Third Bank; $1,150,000

* Pluris, LLC; American Security Bank; $8,000,000

* Nice Blends Corp.;Branch Banking & Trust; $900,000

* International Precast, Inc.; Keysource Bank; $1,668,020