USDA Rural Development announced the approval of a $5 million Business and Industry Guaranteed Loan for Frame 10, one of two bowling alleys on the island of Hawaii. This will enable Frame 10 to refinance higher interest rate loans with a lower cost USDA Rural Development guaranteed loan. A portion of the loan proceeds will be used to purchase additional equipment with the remainder used to consolidate loans financed to build and renovate the property’s two buildings.
According to Chris Kanazawa, USDA Rural Development State Director for the Hawaii and the Western Pacific, “This debt refinancing will allow Frame 10 to enjoy a savings of $72,000 in annual debt service.” This past year, Rural Development provided more than $12.6 million in grants and loans to assist Hawaii’s businesses in rural communities. “Rural Development providing financial assistance to Frame 10 will not only strengthen the company, but will support the other 18 small business tenants and their employees,” he said.
The Business and Industry Loan Guarantee program allows lenders to request a guarantee for businesses, nonprofits, cooperatives, federally-recognized tribes, public bodies and individuals. Projects must be located in any area other than a city or town with a population of greater than 50,000 inhabitants and the urbanized area of that city or town.
Some eligible fund usage includes: business conversion, purchase and development of land, equipment purchase, debt refinancing resulting in job creation and certain business and industrial acquisitions.
This project is expected to create two jobs.
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. 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.