U.S. flag

An official website of the United States government

Dot gov

Official websites use .gov
A .gov website belongs to an official government organization in the United States.

Https

Secure .gov websites use HTTPS
A lock () or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

Trump Administration Provides Over $2.65 Million to Kansas Cities to Promote Economic Development

Name
Allen Pickert
City
Topeka
Release Date

U.S. Department of Agriculture (USDA) Rural Development State Director for Kansas Lynne Hinrichsen today announced that the USDA is investing $2,659,746 in loans and grants to support rural economic development.

“This economic development funding is a great asset for rural communities to save and grow jobs,” Hinrichsen said. “Under the leadership of President Trump and Agriculture Secretary Sonny Perdue, USDA has been working tirelessly to be a strong partner to rural Kansas in building stronger and healthier communities, because we know when rural America prospers, all of America prospers.”

Alma - This project will provide a $600,000 loan to Grandma Hoerner's Foods, a food processing facility, to make building improvements and purchase additional equipment. The applicant will provide an additional $150,000 toward the project and the project will create 19 jobs.

Cheney - This project will provide a $422,800 loan to SPK Grocery Inc. and SPK Holdings LLC to make purchases and improvements to a grocery store in Cheney, Kan. The borrower will provide an additional $56,000 and private/commercial sources will provide an additional $49,700 toward the project for a total project amount of $528,500. The project will save 16 jobs.

Colby - This project will provide two loans of $870,000 and $150,000 to Citizens Medical Center Inc. to purchase an MRI machine and make building improvements to the MRI department at the hospital. The $150,000 Rural Development investment will be used to create a revolving loan fund through Rural Telephone Service Company Inc.  The initial loan through this revolving loan fund will be made to Citizens Medical Center.  Both loans through Rural Telephone will then be loaned to Citizens Medical Center Inc.  The applicant will provide an additional $217,500 toward the project and it is expected to save 14 jobs.

Leavenworth - This project will provide a $116,946 loan to Next to Nature Farm to construct a new facility and purchase extraction and harvesting equipment. Next to Nature Farm is a bee farm of 58 hives. They also produce fresh fruit, fruit products and operate two area farmer’s markets. The applicant will provide an additional $29,236 toward the project and the project will create four jobs.

Wellington - This project will provide a $500,000 loan to assist the city of Wellington
with necessary improvements to the existing emergency department so that the facility can reopen. The applicant will provide an additional $200,000 toward the project, Ascension via Christi will additionally provide $1,134,914 and the project will create 25 jobs.

The funding is being provided through USDA Rural Development’s Rural Economic Development Loan and Grant (REDLG) Program which provides zero-interest loans to local utilities that they, in turn, pass through to local businesses (ultimate recipients) for projects that will create and retain employment in rural areas. The ultimate recipients repay the lending utility directly. The utility then is responsible for repayment to USDA.

The REDLG program also provides grants to local utility organizations that use the funding to establish a Revolving Loan Fund (RLF).  Loans are made from the revolving loan funds to projects that will create or retain rural jobs.

Contact USDA Rural Development

Information on programs available through USDA Rural Development is available by visiting www.rd.usda.gov/ks, or by calling (785) 271-2700.

USDA Rural Development has four offices across the state to serve the residents living in rural Kansas. Office locations include a state office in Topeka, along with local offices in Iola, Newton and Hays.

almaIf you’d like to subscribe to Kansas USDA Rural Development updates, visit our GovDelivery subscriber page