Agriculture Secretary Vilsack Announces $449 Million in Loan Assistance to Help Rural Businesses
Guaranteed Loans Provided Through Recovery Act Funds Help Local Businesses and Supports 'Know Your Farmer, Know Your Food' Initiative
WASHINGTON, Jan. 13, 2010 - Agriculture Secretary Tom Vilsack today announced $449 million in loan guarantees to assist 128 rural businesses through funding made available by the American Recovery and Reinvestment Act. The funding is being made available through USDA Rural Development's Business and Industry Guaranteed Loan Program. Altogether, $1.7 billion is available to businesses across the country through Recovery Act Business and Industry Guaranteed Loan Program funding.
"A number of the Recovery Act funds announced today are supporting USDA's 'Know Your Farmer Know, Your Food Initiative' by providing capital to rural business that support and market locally produced foods in communities throughout the country," said Vilsack. "We can revitalize rural communities and spur economic opportunity by building infrastructure to strengthen local food systems and creating a stronger link between local food production and local consumption."
For example, Prairieland Foods, LLC, in Hallam, Neb., was selected to receive a $650,000 loan to enable the locally owned and operated dairy processing facility to meet the growing demand for a local, source-verified, sustainable supply of dairy foods and ingredients. The facility will also help diversify the market exposure for milk produced at local dairies, including partner company Prairieland Dairy, LLC. The loan will be used to purchase adjacent property for future expansion to include producing cheese, yogurt, ice cream, and other dairy foods and ingredients.
In Holly Springs, N.C., My Way Tavern, a local family-owned restaurant, has been selected to receive a $204,000 loan to help with start-up costs of their neighborhood restaurant. The restaurant plans to purchase at least 10 percent of its produce from local farmers.
USDA's 'Know Your Farmer, Know Your Food' initiative was launched in September. It emphasizes the need for a fundamental and critical reconnection between producers and consumers and includes such major agricultural topics as supporting local farmers and community food groups; strengthening rural communities; enhancing direct marketing and farmers' promotion programs; promoting healthy eating; protecting natural resources; and helping schools connect with locally grown foods. The initiative builds on the 2008 Farm Bill, which provides for increases and flexibility for USDA programs in an effort to promote local foods.
The funding announced today is being made available through USDA Rural Development's Business and Industry Guaranteed Loan Program. Eligible applicants include private businesses, cooperative organizations, corporations, partnerships, non-profit groups, federally recognized Indian tribes, public bodies and individuals. The funds will be targeted to creating and retaining quality jobs and serving difficult-to-reach populations and areas hardest hit by the current economic downturn.
More information about USDA's Recovery Act efforts is available at www.usda.gov/recovery. More information about the Federal government's efforts on the Recovery Act is available at www.recovery.gov.
Below is a list of borrowers receiving loan awards. Funding is contingent upon borrowers meeting conditions in the loan agreement.
* Fairhope Nursing, LLC; Community Bank & Trust; $4,808,700
* General Trade; Huntington National Bank; $10,000,000
* HH Fessler Knitting Co., Inc. & Meck Realty Partners II, LLC; Sovereign Bank; $3,400,000
* Cody Brothers Feed Milling; Appalachian Development Corporation; $1,200,000
* Howze Mortuary, Inc.; Bank Of Travelers Rest; $1,898,250
* McKenzie Medical Center, Inc. & WMC Medical Clinic Partnership; TN Business & Industrial Development Corp; $6,100,000
* Vanderbilt Landscaping, LLC; First Tennessee Bank; $900,000
* Sherwood Mining Company, LLC; First Vision Bank; $5,000,000
* Smith Farmers Cooperative; Citizens Bank; $1,350,000
* West Reel, LLC; Ridgestone Bank; $3,800,000
* Replogle Enterprises & Replogle Hardwood Flooring Company, LLC; TN Business & Industrial Development Corp; $4,800,000
* Glenbrook West General Partnership; Hancock Bank & Trust; $6,500,000
* Lewis County Long Term Facility; Community South Bank; $3,613,300
* McNairy County Long Term Facility, Inc.; Community South Bank; $3,220,200
* Dyersburg Manor, Inc.; Community South Bank; $3,644,200
* Sam Kane Beef Proceesors, Inc.; Heritage Land Bank, FLCA; $25,000,000
* Barnette Energy, LLC; Powell Valley National Bank; $240,000
* Royal Oak Farm, LLC; Farm Credit Of The Virginias, ACA; $987,000
* Mister Leo Holdings, LLC; Community South Bank; $1,430,000
* Rhino Foods Inc; People's United Bank; $1,243,190
* Anami Hotels, LLC; First Chatham Bank; $3,284,000
* Individual; Community First Guam FCU; $1,012,500
* Acoustic Ceiling Products, LLC & Precision Plastics, LLC; Community Bank and Trust-Sheboygan; $5,000,000
* Precision Plastics, LLC & Acoustic Ceiling Products, LLC; Community Bank and Trust-Sheboygan; $3,000,000
* Riverdale Ag Services, Inc. and Cinco J, LLC; American Trust & Savings Bank; $550,000
* Cinco J, LLC and Riverdale Ag Services, LLC; American Trust & Savings Bank; $179,000
* Integrity Grading and Excavating, Inc.; Mid-Wisconsin Bank-Medford; $1,900,000
* Serigraph, Inc.; Ridgestone Bank; $8,500,000
* ST Paper, LLC; Nicolet National Bank; $25,000,000
* Olsen's Crop Service, LLC; West Pointe Bank; $10,000,000
* Olsen's Mills Acquisition Co., LLC; West Pointe Bank; $10,000,000
* Health & Marketing West/Douglas Care Center; Converse County Bank; $5,000,000
USDA Rural Development's mission is to increase economic opportunity and improve the quality of life for rural residents. Rural Development fosters growth in homeownership, 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.
USDA is an equal opportunity provider, employer and lender. To file a complaint of discrimination, write: USDA, Director, Office of Civil Rights, 1400 Independence Avenue, SW, Washington, DC 20250-9410 or call (800) 795-3272 (voice), or (202) 720-6382 (TDD).