Agriculture Secretary Tom Vilsack today announced the selection of recipients in 14 states and one territory to receive loans to create or save jobs and boost local economies. Funding is provided through USDA's Intermediary Relending Program.
"This funding is part of the Obama Administration's ongoing effort to expand economic opportunity for rural entrepreneurs, helping businesses in our small towns and rural communities grow and create more jobs," Vilsack said. "These loans will continue our work to leverage private investment and help the rural economy grow."
Loans are provided to organizations (intermediaries) that re-lend the money to local businesses. For example, in Delaware, First State Community Loan Fund was selected to receive a loan to provide access to capital for small businesses, community organizations and developers of affordable housing. In South Carolina, the Southern Association for Financial Empowerment was selected to receive a loan to provide low-interest loans to public and non-profit organizations for business and community development in 14 counties.
USDA's Intermediary Relending Program continues to bring economic opportunity to rural residents and business. For example, in 2010, Coastal Community Capital, an economic development organization based in Cape Cod, Mass., received a $750,000 loan to help provide capital for business creation. Loan applicant Mac Hay used IRP funding as a down payment to purchase a restaurant where he once worked as a college student. Hay's initial success with the restaurant has now grown into a business enterprise that employs 106 people and consists of three restaurants, two retail seafood shops and a mail-order firm.
Under today's announcement, USDA is providing $6.3 million for projects in 17 communities. Funding is contingent upon the recipient meeting the terms of the loan agreement. Below is a list of organizations selected for funding:
California: SAFE-BIDCO – $400,000 loan. Funds will be used to provide low-interest loans to public and non-profit organizations for business and community development.
Delaware: First State Community Loan Fund – $364,437 loan. Funds will be used to provide access to capital for small businesses, community organizations and developers of affordable housing.
Maine: Northern Maine Development Commission – $400,000 loan. Funds will be re-lent to businesses and community development organizations to create and retain jobs.
Massachusetts: Cape and Islands Community Development – $400,000 loan. Funds will provide low-interest loans to public and non-profit organizations for business and community development.