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USDA Rural Development Delivers Nearly $13 Million Through Business Programs to Rural Nebraska

Name
Vicki Schurman
City
Lincoln
Release Date

USDA Rural Development State Director Maxine Moul announced that nearly $13 million was delivered to rural Nebraska in federal fiscal year 2015 through its various business programs, which created and/or saved 211 jobs by assisting 145 businesses, 47 ag producers, and 3 cooperatives.

The total Business and Cooperative Programs portfolio reflects $344 million in funding since 1996. There is funding available for Fiscal Year 2016 and applications are being accepted.

“USDA Rural Development believes in a strong economy and our business programs help to accomplish this in rural Nebraska,” said Moul. “We look forward to Fiscal Year 2016 and continuing to meet the needs of rural businesses and producers.”

The Business and Industry (B&I) Guaranteed Loan program made available more than $9 million that, through leveraging, assisted four businesses. The B&I Guaranteed Loan Program funds business and industrial development to create and maintain employment, and to expand and improve the economic climate. 

AF Funds, LLC headquartered in Kearney, Nebraska is a newly formed LLC that owns all of the manufacturing equipment and rolling stock that is then leased to Builders Warehouse, Inc.   Builders Warehouse, Inc. owns and operates retail hardware and lumberyard facilities in three different locations.  AF Funds, LLC refinanced their existing debt through Great Western Bank, backed by a Rural Development B&I Loan Guarantee, to obtain better rates and terms.  The refinance would allow AF Funds, LLC to save more than $388,000 annually in debt payments.  It is projected that there will be four jobs created and 33 jobs saved as a result of this refinance and the business will be better positioned for future business expansions. AF Funds, LLC were able to utilize the B&I program again to purchase additional vehicles and equipment to be leased to Builders Warehouse, Inc. for their growing operations.

The Rural Business Development Grant (RBDG) program provided eight grants totaling more than $366,000, including two Native American Earmark grants.   The Village of Walthill received $82,489 to establish a technical assistance and training program to assist Native American rural small business and small business start-ups in the Village of Walthill.  The Village will be collaborating with Nebraska Indian Community College, Nebraska Department of Economic Development, and the Omaha Nation Community Response Team.

The Rural Microentrepreneur Assistance Program (RMAP) provided six grant renewals totaling $289,376. Since 2010, three recipients have received loans totaling $1.2 million. To date, 36 ultimate recipient loans have been made for nearly $974,000. The RMAP program dollars were leveraged with more than $1.4 million, and115 jobs have been created or saved. 

Through the Rural Economic Development Loan and Grant (REDLG) program, one grant totaling $300,000 was provided to Central City to establish a revolving loan fund.  The initial loan from Central City will go to Merrick County Entertainment Corp, which will construct a new energy efficient 9,800 square foot community cinema complex. USDA funds will assist the Merrick County Entertainment Corp in purchasing digital theater equipment, seating and other furnishings for the new community movie theater. The building will house two theaters with a total of 290 seats and will be equipped with two modern automated digital projection systems and screens. The facility will be made available to private persons, businesses and non-profit organizations for community, business and family gatherings.  The theater is part of a planned cultural and entertainment complex.  The project will create four jobs, in a community of 2,934 while serving all Merrick County residents.

The Value Added Producer Grant program provided funding totaling more than $320,000 to five producers. Burbach’s Countryside Dairy, LLC of Hartington, Nebraska will utilize $240,000 to enter into the commercial marketplace with a new product by expanding their value-added product line to include yogurt.  The 36 month project will commercialize production and sales of this entirely new product, which is expected to reach a customer base of over 17,000.

The University of Nebraska-Board of Regents was awarded a Rural Cooperative Development Grant (RCDG) of $200,000 that will provide technical assistance and education to new and existing cooperative enterprises including some “Main Street” businesses.  Through the University of Nebraska Cooperative Development Center (NCDC), RCDG funds have been used to assist eight rural communities over the past two years to keep their grocery stores open.  Technical assistance and education for the development of cooperatively owned businesses has been provided, which includes board of director training to sustain and move coops forward into the future.  These strategies and others will be continued with the grant funding.

Nebraska Rural Development processed 135 applications for the 9007 Rural Energy for America Program (REAP).  Nebraska awarded funds to 70 projects for $1,806,905 for renewable energy and energy efficiency projects. The Advanced Biofuel Payment Program issued four payments totaling $347,064 to advanced biofuel producers to support and ensure an expanding production of advanced biofuels.  Additionally, an energy auditing program was funded under the REAP Energy Audit and Renewable Energy Development Assistance for $71,363 to the University of Nebraska’s Manufacturing Extension Partnership.  The funds will be used to conduct energy audits for businesses who are applying for the REAP program. 

Please contact your local Rural Development Business Program Specialist to inquire about Fiscal Year 2016 programs and funding availability.

For more information contact the Rural Development office nearest you.  You can locate an office by visiting:  http://www.rd.usda.gov/contact-us/state-offices/ne.

Visit http://www.rd.usda.gov/programs-services/all-programs for information on all of Rural Development’s programs.

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. USDA’s investments in rural communities support the rural way of life that stands as the backbone of our American values.