USDA INVESTS $5.5 MILLION IN BUSINESS DEVELOPMENT FOR RURAL AMERICA
Funding will Create or Save Over 700 Rural Jobs, Including 200 in Florida Disaster Areas
WASHINGTON, April 12, 2005 - Agriculture Secretary Mike Johanns today announced that $5.5 million will be invested in nine organizations for business development and job creation in six states, including hurricane-stricken areas of Florida.
"These funds will be available to America's rural small businesses to spur job creation as part of President Bush's initiative to create jobs and improve economic opportunities in rural communities," said Johanns. "This investment by the Bush Administration, along with local financing partners, will bring new economic opportunities to support rural families and businesses."
Johanns noted that in 2004, $39.7 million in 63 revolving loan funds supported 223 businesses and created or saved over 30,000 jobs. Since 2001, the Bush Administration has invested an estimated $150 million to support local revolving loan funds.
Loans are made available through the USDA Rural Development Intermediary Relending Program. The aim of business revolving loan funds is to finance business facilities and community development projects in rural areas. This is achieved through loans made to intermediaries who in turn re-lend funds locally to support businesses or community development. Loans from intermediaries to the recipients must be used to establish new businesses, expand existing businesses, create employment opportunities, save jobs or complete community development projects. Funding of selected applicants will be contingent upon meeting these conditions of the loan agreement.
The following applicants were selected to receive loan funds:
Applicant
Funds to Serve
State
Loan Amount
Minority/Women Business Enterprise Alliance, Inc.
Orange, Osceola, Lake, Seminole, Volusia and Polk Counties
FL
$500,000
Montana Community Development Corporation
Missoula County
MT
$750,000
Business Enterprise Development Corporation
Coos, Carroll and Grafton Counties
NH
$516,294
Dunn Area Committee of 100, Inc.
Harnett County
NC
$516,294
Raleigh Business Technology Center
Wake County
NC
$500,000
East Carolina Development Corporation
Lenior County
NC
$750,000
Deadwood Economic Development Corporation (DEDC)
Lawrence County
SD
$516,294
Northeast South Dakota Economic Corporation (NESDEC)
Roberts County
SD
$750,000
Technology 2020/Southeast Community Capital
Anderson County
TN
$750,000
USDA Rural Development's mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. As a venture capital entity, Rural Development has invested over $50 billion since the beginning of the Bush Administration to provide equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. As a result, over 800,000 jobs have been created or saved through these investments. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA's web site at http://www.rurdev.usda.gov.
