U.S. Dept. of Agriculture Rural Development State Director for Michigan James J. Turner today announced the agency has $25 million available in loan guarantees for eligible Michigan businesses through partnerships with local lending institutions.
“This level of program funding represents a significant opportunity for Michigan businesses seeking funding for a wide variety of purposes,” said Turner. “The Business and Industry Guaranteed Loan Program can assist with business development, improvements and growth, ultimately saving and creating jobs in Michigan communities.”
Eligible entities include any type of legally organized business entity and individual business owners located in a community of 50,000 or fewer population.
Recently, exceptions were granted to some Michigan communities allowing them to become eligible despite their proximity to Lansing and Flint. They are: Mason, DeWitt and Fenton.
A recent example of what the Business and Industry Guaranteed Program can do is demonstrated by a loan guarantee made in partnership with a local lender to a Michigan company. A $10 million guaranteed loan was provided to the company to expand its business by opening a manufacturing facility. The facility has increased employment in the Southwest Michigan area by 20 new jobs.
The purpose of USDA Rural Development’s Business and Industry Guaranteed Loan Program is to improve, develop, or finance businesses and improve the economic climate in rural communities. Business and Industry Guaranteed Loans are made by lenders and guaranteed by USDA Rural Development. Loan purposes must be consistent with the general purpose contained in the regulation, including but not limited to:
- Business and industry acquisitions when the loan will keep the business from closing, prevent the loss of employment opportunities, or provide expanded job opportunities,
- Business conversion, enlargement, repair, modernization or development,
- Purchase and development of land, easements, rights-of-way, buildings or facilities,
- Purchase of equipment, leasehold improvements, machinery, supplies or inventory.
For more information, or to receive application materials, please contact the Business Programs Division at 517-324-5157, email traci.smith@mi.usda.gov, or visit the web site at http://www.rd.usda.gov/mi.
USDA Rural Development State Director for Michigan James J. Turner was appointed by President Barack Obama in 2009. USDA, through its Rural Development mission area, has a portfolio of programs designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America. Under the Obama Administration, USDA Rural Development has invested more than $6.4 billion in Michigan projects.