Investments Will Help Create or Save 110 Jobs in Rural Ohio
COLUMBUS, Ohio, Aug. 24, 2021 – U.S. Department of Agriculture (USDA) Ohio Rural Development Acting State Director Beth Huhn announced that USDA is on track to provide a record level of support for Ohio rural working capital and other business capital needs in fiscal year 2021.
“These investments will strengthen the economies in our small towns and communities by providing capital to businesses that need it most,” said Huhn. “USDA remains committed to helping rural businesses create jobs so Ohio can build back better and stronger than ever before.”
The Department has invested $10.7 million to help four rural Ohio businesses create six jobs and save 14 jobs through the Business and Industry Loan Guarantee Program (B&I). Additionally, $5 million was invested to help four businesses save over 90 jobs through the Business and Industry CARES Act Program, which was established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
For example:
- S&T Bank helped Minerva Dairy Inc utilize $7.4 million in B&I funding to restructure debt and purchase equipment and $2 million in CARES Act funds for working capital that was needed because of increased demand for their products during the Covid-19 pandemic. This Ohio based company is the oldest family owned and operated creamery in the United States and has been in operation for over 125 years. Minerva manufactures artisan slow-churned butter and cheese from the milk of pasture raised cows from family farms in the area.
- 2727 St Johns Lima LLC, a newly established real estate holding company, utilized $560,000 in B&I funding through The Union Bank Company to purchase real estate which will be leased to a construction company and two other businesses.
- Findlay Lodging LLC used $365,000 in CARES Act funds to provide working capital through First Utah Bank to help a 71-unit Quality Hotel and Suites, located in Findlay, recover from the adverse impacts of the COVID-19 crisis.
Today’s announcement comes as part of a larger, nationwide announcement from USDA Deputy Under Secretary for Rural Development Justin Maxson where he announced that USDA has invested $1.2 billion in loan guarantees to help rural businesses in 41 states, Guam and the Virgin Islands. These investments – made through the Business and Industry Loan Guarantee Program and the Business and Industry CARES Act Program – are expected to create or save more than 12,000 jobs for people in rural areas.
Investments under the B&I program are higher than they were this time last year due in part to a series of program improvements USDA adopted under the new OneRD Guarantee Loan Initiative. This initiative increased the USDA loan guarantee to 80 percent for investments greater than $5 million. The previous guarantee percentages were 70 percent for loans less than $10 million and 60 percent for loans greater than $10 million. This improvement has made the program more attractive to capital-intensive businesses such as manufacturing companies.
Under the Biden-Harris Administration, Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, Tribal and high-poverty areas.
Information on programs available through USDA Rural Development is available by visiting www.rd.usda.gov/oh or calling 614-255-2400. If you’d like to subscribe to USDA Rural Development updates, visit our GovDelivery subscriber page.
###
USDA is an equal opportunity provider, employer, and lender.