USDA Awards $22.5 Million in Loans and Grants to Rural Businesses
Posted on 06/13/2014 at 12:00 AM by Christa Hartsook
Agriculture Secretary Tom Vilsack today announced the award of $22.5 million in loans and grants for organizations in nine states to promote rural economic development.
The funding is being provided through USDA's Rural Economic Development Loan and Grant (REDLG) program. Under this program, USDA provides zero-interest loans and grants to utilities that lend funds to local businesses for projects to create and retain employment in rural areas. These revolving loan funds broaden the program's reach and create a multiplier effect for its impact. Eligible applicants are USDA Rural Utilities Service borrowers. Vilsack noted that innovative USDA investments through this program are boosting economic development in rural communities all across the country.
The Midland Power Cooperative in Jefferson, Iowa, is receiving a $1 million loan to help the Precision Tank & Equipment Company expand its operations. Precision manufactures tanks and specialized equipment for agribusiness and other industry needs. It is building a manufacturing facility in Humboldt, Iowa. The project will create 14 jobs.
The Aiken Electric Cooperative in South Carolina is receiving a $1 million loan that will provide working capital to KW Savings Co. KW Savings is a non-profit group dedicated to environmental protection and energy conservation. Examples of assistance to be provided include installing insulation or energy-efficient heating and cooling systems. The project will create about 19 full-time jobs over a three-year period. USDA provided REDLG funding in 2011 for a similar pilot project with KW Savings and the Central Electric Power Cooperative, another South Carolina utility.