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USDA Announces $1 Million to Help a Rural Small Business Expand and Create Jobs

Name
Nikki Gillespie
City
BAXTER
Release Date

USDA Under Secretary Lisa Mensah today announced $1 million in funding for two organizations to support the expansion of a rural small business in Baxter, Minn.

   “Our small, rural businesses need financing to compete in the global economy," Mensah said. "With this announcement, USDA is demonstrating its continued commitment to investing in small towns and rural communities. These funds will assist with rural small business expansion and provide an opportunity to create jobs that otherwise may not have been possible."

   Funding is made available through the Rural Economic Development Loan and Grant (REDLG) program. Under this program, USDA provides zero-interest loans and grants to local utilities, which use the funding to create revolving funds for projects that will create or retain jobs in rural areas. These revolving loan funds broaden the program’s reach and create a multiplier effect for its impact. Eligible applicants are USDA Rural Utilities Service borrowers.

   Crow Wing Power & Light (CWP) and Consolidated Telephone Company (CTC) were each awarded a $500,000 loan through USDA’s REDLG program to assist local Brainerd, Minn. manufacturing company, Avantech, with financing a 6.5 acre site and construction of a 48,200 sq. ft. manufacturing, engineering, and office facility.

   The project will allow Avantech to relocate two current manufacturing facilities in the city of Brainerd to one larger facility in its neighboring city of Baxter. The new facility will provide improved processing, communications, and management efficiencies – allowing for more resources to be put towards production and job creation. As a result of this project, Avantech is expected to create 12 new jobs while retaining 82 current positions.

   Since 2009, USDA Rural Development has invested nearly $20 million in support of rural small business development and expansion in rural communities throughout Minnesota through the REDLG program. In 2015, South Central Electric Association, servicing multiple counties in southern Minnesota, was selected to receive a $300,000 grant to help the Lewisville Area Volunteer Fire Fighting Company, the Ormsby Volunteer Fire Department, and the Jeffers Area Fire Department purchase new vehicles, fire and EMS equipment.

   For information on how to apply for REDLG loans or grants, contact your Rural Development your local area office by visiting www.rd.usda.gov/mn or see page 14415 of the March 17 Federal Register. The next round of applications is due June 30, 2016.

   Rural Development also invests in housing, water and wastewater treatment, community facilities, renewable energy and broadband. For more information on USDA Rural Development programs, please visit www.rd.usda.gov/mn and contact your local area office.

   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 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.