Agriculture Secretary Tom Vilsack today announced loans and grants for 92 projects worth $18.1 million to help support the start-up or expansion of rural small businesses. These funds are part of more than 20,000 grants and loans to more than 85,000 rural businesses USDA's Rural Business-Cooperative Service has awarded since the start of the Obama administration.
"I am proud of the work USDA has done to help small businesses grow in rural America because they are the engine that creates jobs," Vilsack said. "These funds will allow small and emerging businesses and the organizations that support them to get the financing they need to strengthen their operations, create jobs and expand economic opportunities. Thanks to the 2014 Farm Bill, we can continue this work in a more streamlined and efficient way to benefit small businesses and the American taxpayer."
USDA is awarding the funds through the Rural Economic Development Loan and Grant (REDLG) program, the Intermediary Relending Program (IRP) and the Rural Business Development Grant (RBDG) program.
USDA provides grants or zero-interest loans through the REDLG program to utilities that in turn fund projects to create and retain employment in rural areas. Vilsack announced $11.7 million in REDLG loans and grants for 18 recipients.
In the Intermediary Relending Program (IRP), Vilsack announced $2.5 million for three IRP recipients. The IRP program provides 1 percent loans to non-profit groups, cooperatives, federally recognized tribes and public agencies.
USDA is awarding 71 Rural Business Development Grants totaling $4 million. Congress established the RBDG program in the 2014 Farm Bill by combining the Rural Business Enterprise Grant program and the Rural Business Opportunity Grant program.
One of the RBDG recipients, the Tennessee College of Applied Technology (TCAT) - Morristown, will receive an $110,020 grant to buy state-of-the-art equipment to train students in advanced manufacturing. Located in Hamblen County, TCAT boasts an average of 90% of the students trained are placed directly into jobs with businesses located in the ten county service area. Hamblen is one of many counties across the nation USDA has targeted for special assistance through the StrikeForce Initiative for Rural Growth and Opportunity. USDA launched StrikeForce in 2010 to increase investments in rural communities through intensive outreach and stronger partnerships with community leaders, businesses, foundations and other groups that are working to combat poverty.
“Supporting the expansion of economic opportunity in rural Tennessee will pay dividends for workers, their families and the entire community,” said USDA Rural Development State Director Bobby Goode. Tennessee will receive more than $734,000 to fund twenty-one projects. View the list of Tennessee awards.
The funding for today's awardees totals $18.1 million nationwide and is contingent upon the recipients meeting the terms of the loan and grant agreements.
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.
For more information on USDA Rural Development programs available in Tennessee visit us online at www.rd.usda.gov/TN.