SIOUX CENTER, Iowa, Sept. 23, 2020 – The Trump Administration today announced that the United States Department of Agriculture (USDA) is partnering with American State Bank to invest $8 million in Siouxland Energy Cooperative. This USDA Rural Development Business and Industry Loan Guarantee CARES Act investment will be used to provide working capital for Siouxland Energy Cooperative, a 90-million-gallon-per-year ethanol plant that has been in operation since 2000. The purpose of this funding program is to increase private investments in rural businesses and agricultural producers impacted by COVID-19.
“Biofuels, which contribute to energy security, reduce air pollution, and support rural economic development, are an important market for U.S. farmers,” said USDA Deputy Under Secretary for Rural Development Bette Brand, who was on-site at Siouxland Energy Cooperative to make this announcement today. “Under the leadership of President Trump and Agriculture Secretary Perdue, USDA has been working tirelessly to be a strong partner to rural America in building stronger communities, because we know when rural America thrives, all of America thrives.”
Siouxland Energy Cooperative owned by 385 farmer members, produces clean burning, high octane ethanol and high value feed co-products including wet distillers grain, syrup and corn oil which are the protein and fiber-packed remnants of the corn after the ethanol producing starch is removed. These co-products are sold to nearby beef and dairy operations.
Background:
In March, Congress allocated $1 billion for the Business and Industry Loan Guarantee Program in the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This program offers loan guarantees to private lenders for their loans to rural businesses and agricultural producers to supplement their working capital to prevent, prepare for and respond to the economic impacts of the coronavirus.
Interested parties should contact their USDA Rural Development Iowa office for information about additional funding, application procedures and eligibility details. More information at the link provided Business and Industry CARES Act Program.
USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs 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 areas. For more information, visit http://www.rd.usda.gov/ia or call (515) 284-4663.
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