Source: USDA, 1/23/14
 
Agriculture Secretary Tom Vilsack today announced that USDA is investing in rural businesses to help create jobs and spur economic development.

"These investments will help businesses expand, help rural communities grow their economies and help support the community-based development goals of the Obama administration," Vilsack said. "USDA is providing loans and grants to our local partners who can leverage this money with funds from other sources for projects that will have broad economic impacts.

The funding is being provided through USDA's Rural Economic Development Loan and Grant (REDLG) program. Under this program, USDA provides zero-interest loans to utilities that lend funds to local businesses for projects to create and retain employment in rural areas. These revolving loan funds broaden the program's reach and create a multiplier effect for its impact.

  Edgecombe-Martin Electric Membership Corporation       $2 million (loan amount)       To help the Syfan Corporation buy equipment to expand its manufacturing facility. This project is expected to create 24 jobs. 

Randolph Electric Membership Corporation       $1,840,000(loan amount)       $300,000 (grant amount)       To help the Town of Troy finance the construction of an industrial building that will be leased to Wright Foods for food manufacturing. This project will help the Town further develop the industrial park. It is expected to create 300 jobs.

Brunswick Electric Membership Cooperative       $700,000 (loan amount)       $300,000 (grant amount)      To help a non-profit hospital buy an office building. This project will allow the hospital to save operating costs and offer more services to local residents. 

Jones-Onslow Electric Membership Corporation       $300,000 (grant amount)      To help finance equipment at a new construction and demolition recycling center in Maysville. The facility will create 30 jobs and will help reduce the amount of  construction debris that goes into local landfills. 


In addition to the Rural Economic Development Loan and Grant Program, other USDA programs help rural businesses. In Fiscal Year 2013, which ended September 30, USDA supported 26 organizations with more than $17 million for revolving loans through the Intermediary Relending Program. Additionally, USDA Rural Development provided nearly $1 billion in loan guarantees through the Business and Industry Guaranteed Loan program to improve, develop or finance businesses in rural communities.

 In total, Vilsack announced today $17.6 million in loans and grants for projects in 15 states and the Northern Mariana Islands.