Release No. 0226.09
Contact: Weldon Freeman (202) 690-1384
WASHINGTON, June 26, 2009 — Agriculture Secretary Tom Vilsack today announced the selection of 11 organizations to receive $6.9 million in loans to spur economic development and create or save an estimated 465 jobs in rural communities.
“Creating jobs and investing in the future of rural America is an essential part of the mission at USDA, and the funding announced today is expected to bolster economic activity in rural communities,” Vilsack said.
These awards are made available through USDA Rural Development’s Intermediary Relending Program and its allocations for (1) Empowerment Zone/Enterprise Communities/Rural Economic Area Partnerships, (2) counties in the Mississippi Delta, and (3) Native American communities. The funds go to community development or regional planning groups who then re-lend the money to local businesses. The loans must be used to create or retain jobs by starting or expanding businesses.
For example, alt.Consulting in Pine Bluff, Ark., was selected to receive a $400,000 loan to provide low-interest loans to minority-owned rural business in Delta counties in Arkansas, Mississippi and Tennessee. Rural Development’s assistance is expected to create 15 jobs and save 25. Because many businesses in the Delta lack access to capital and technical assistance, the Rural Development funding will make them more competitive and expand much-needed economic activity.
Meanwhile, the Lake County Community Development Corporation, in Ronan, Mt., was selected to receive a $500,000 loan to establish a revolving loan program for small and emerging businesses in Lake, Mineral and Sanders counties and to serve the Flathead Indian Reservation. The region has faced double-digit unemployment due to timber and technology sector layoffs, and these funds will be used to support new employment opportunities in the three-county area. USDA’s funding is expected to create or save more than 80 jobs.
The Champaign County Regional Planning Commission in Urbana, Ill., was selected to receive a $750,000 loan to provide low-interest loans to relend for local business and community development activities. The planning commission will create a revolving loan fund to help finance business development in Champaign, Ford, Iroquois, Piatt, Douglass and Vermilion counties. Rural Development funds are expected to help five businesses and create or save 50 jobs.
Funding of each recipient is contingent upon the borrower meeting the conditions of the loan agreement. The following is a complete list of applicants that were selected to receive USDA Intermediary Relending Program funds.
3rd Quarter Intermediary Relending Program Recipients
California:
- Rural Community Assistance Corp.: $750,000 loan
- Superior California Economic Development: $500,000 loan
District of Columbia:
- Community Development Transportation Leadership Services: $750,000 loan
Illinois:
- Champaign County Regional Planning Commission: $750,000 loan
Kentucky:
- Kentucky Highlands Investment Corp.: $750,000 loan
Montana:
- Lake County Community Development Corp.: $500,000 loan
- Mississippi Delta Communities
Illinois:
- Southern Illinois Coal Belt Champion Community, Inc.: $1,000,000 loan
- City of Metropolis: $750,000 loan
Arkansas:
- Alt. Consulting: $400,000 loan
- Empowerment Zone/Enterprise Community/Rural Economic Area Partnerships
Vermont:
- Vermont Community Loan Fund: $500,000 loan
- Native American Communities
California:
- Rural Community Assistance Corp.: $250,000 loan
USDA Rural Development’s mission is to increase economic opportunity and improve the quality of life for rural residents. Rural Development fosters growth in home ownership, 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 http://www.rurdev.usda.gov.
