News

Rural Development funds going to small businesses

Fifty-million dollars is being made available to more than 70 rural businesses last week by the USDA’s Rural Development agency, during National Small Business week. Acting Under Secretary of Rural Development, Doug O’Brien, says they work directly with small town community banks and farm credit institutions that want to provide those loans.

“But, they can’t do it because of the risk profile of that loan. What we’re able to do at USDA is provide a guarantee to that small town community bank of 70-or-80% so that they are able to take that risk, to work with that small business so that they can expand and create jobs.”

O’Brien says rural small businesses, many of which provide products and services to farmers, are the “engines” of local economies.

Businesses receiving loans and grants include hotels, restaurants and manufacturers. O’Brien says two out of three jobs created in the U.S. are from small businesses.

Loans are contingent upon conditions being met.  Among the projects to be funded include the refinancing of debt and construction of a 500-thousand bushel grain bin and working capital to purchase gas station convenience stores.

AUDIO: Doug O’Brien (8:00 mp3)

 USDA Rural Development recipients

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!