Agriculture Secretary Tom Vilsack today announced funding for 15 businesses in 10 states to create or retain jobs and expand economic activity. USDA remains focused on carrying out its mission, despite a time of significant budget uncertainty. Today's announcement is one part of the Department's efforts to strengthen the rural economy.
"The lifeblood of any successful business is access to capital," said Vilsack. "USDA Rural Development's Business & Industry Guaranteed Loan program plays a major role in helping qualified firms and organizations in rural areas gain access to the capital they need to start or expand their enterprises," Vilsack said.
The Business & Industry Guaranteed Loan program aids rural businesses by bolstering private credit through loan guarantees for quality business ventures. A borrower may be an individual, a corporation, public body, partnership, cooperative organization, or other legal entity organized and operated on a profit or nonprofit basis; an Indian tribe on a Federal or State reservation or other federally recognized tribal group. For more information on USDA's Business & Industry program, please visit http://www.rurdev.usda.gov/BCP_gar.html.
The announcements made by Vilsack today include conditional commitments totaling $37.6 million. Secretary Vilsack made the announcement as part of the Department's celebration of National Small Business Week.
For example, with today's announcement, USDA selected KMI Group, Inc., in Kenton, Tenn., to receive a $1 million loan guarantee to purchase machinery and equipment and provide working capital to increase the capacity of this global manufacturer of plastic resins for molders, extruders and compounders.
To help cope with a severe housing shortage, Killdeer Mountain Park, LLC, in Killdeer, N.D., is selected to receive a $4.2 million loan guarantee to finance housing development sites for 78 mobile homes, office space, and a recreational building for the large number of energy and oil field workers moving into the area due to the rapid growth of the Bakken Oil Field.
Since 2009, USDA has provided more than 15,000 loans and grants through its business programs, helping more than 60,000 rural businesses. For more information on USDA's business and cooperative development programs, visit http://www.rurdev.usda.gov/Business.html.
Funding is contingent upon the recipient meeting the conditions for the loan agreement.
President Obama's plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President's leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way -- strengthening America's economy, small towns and rural communities. President Obama and Agriculture Secretary Vilsack are committed to a smarter use of Federal resources to foster sustainable economic prosperity and ensure the government is a strong partner for businesses, entrepreneurs and working families in rural communities.
USDA has made a concerted effort to deliver results for the American people, even as USDA implements sequestration -- the across-the-board budget reductions mandated under terms of the Budget Control Act. USDA has already undertaken historic efforts since 2009 to save more than $828 million in taxpayer funds through targeted, common-sense budget reductions. These reductions have put USDA in a better position to carry out its mission, while implementing sequester budget reductions in a fair manner that causes as little disruption as possible.