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Source: USDA, 8/6/13
Agriculture Secretary Tom Vilsack announced today that projects in 17 states and the Commonwealth of Puerto Rico will receive loan and grant assistance to create jobs and boost economic development in rural areas. The U.S. Department of Agriculture (USDA) remains focused on carrying out its mission, despite a time of significant budget uncertainty. Today's announcement is one part of the Department's efforts to strengthen the rural economy. Rural Business-Cooperative Service Administrator Lillian Salerno made the announcement on Vilsack's behalf while attending the National Veterans Small Business Conference in St. Louis.
"The Obama Administration is committed to building strong rural economies, and helping veterans find jobs that will support their families," Salerno said. "The funding we are announcing today reflects the Administration's commitment to provide economic opportunity for residents and businesses in rural communities, including those here in Missouri."
Today's announcement involves funding provided through three USDA economic development programs: the Intermediary Relending Program, the Rural Economic Development Loan and Grant Program, and the Rural Business Opportunity Grant Program.
Intermediary Relending Program funds are awarded to community-based development or regional planning groups that then re-lend the money at a low interest rate to local businesses. The loans must be used to create or retain jobs by starting or expanding businesses. Since President Obama took office, this program has created or saved approximately 40,000 jobs.
USDA's Rural Economic Development Loan and Grant (REDLG) program provides zero-interest loans and grants to local utilities which then, in turn, lend the funds to local businesses (ultimate recipients) for projects that will create and retain employment in rural areas. The program funds business start-up or expansion, business incubators, education and training facilities and equipment, community development assistance, health care, and other community projects that support rural jobs. Since the start of the Obama Administration, the REDLG program has helped create or save an estimated 25,000 rural jobs, provided $200 million in economic development assistance, improved manufacturing capability, expanded health care and educational facilities, and has either expanded or helped establish more than 900 rural businesses and community projects.
Rural Economic Development Loan and Grant Program Recipients
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North Carolina |
Four County Membership Corporation |
$1,000,000
Loan
$300,000
Grant |
Funds will be used to enlarge a business incubator space to provide more room for a local manufacturer to expand its operations. |
|
North Carolina |
Lumbee River Electric Membership Corporation |
$500,000
Loan |
Funds will be used to purchase sweet potato processing equipment for a frozen foods company. The project will create 149 new jobs. |
Rural Business Opportunity Grants (RBOG) are provided to promote sustainable economic development in rural communities with exceptional needs. Since the start of the Obama Administration, $13 million in these grants have been provided to help more than 430 business and community projects in economically stressed rural communities find new opportunities for growth. The projects have created more than 2,830 jobs. Rural Development will announce additional RBOG recipients later this year.
Today's recipients will receive nearly $13 million in loans and grants. The funding is contingent upon the recipients meeting the terms of the loan or grant agreement. In addition to Puerto Rico and the states of Missouri, Kansas, and North Dakota, other states receiving funding include: Calif., Conn., Minn., N.C., N.Y., Ohio, Ky., S.C., S.D., Va., Vt., W.Va., Wash. and Wis. View the list of recipients.
Administrator Salerno said today's announcement is another reminder of the importance of USDA programs for rural America. She said a comprehensive new Food, Farm and Jobs Bill would further expand the rural economy, and that's just one reason why Congress must get a comprehensive Bill done as soon as possible.
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