USDA Rural Development State Director today announced a $300,000 grant to the Runestone Telephone Association (RTA) in support of the expansion of a rural small business in Barret, Minn. These funds are part of more than 1,090 grants and loans that USDA Rural Development has awarded throughout Minnesota since 2009.
“These funds assist with rural small business expansion and provide an opportunity to create jobs that otherwise may not have been a possibility,” Landkamer said. “These opportunities are crucial to the continued economic sustainability of rural communities.”
RTA will use USDA Rural Development funds to establish a revolving loan fund that they can then lend out to local rural small business start-ups and expansion. The initial loan from the fund will be to the Barret Care Center to assist them with a building remodel and expansion project. This project is expected to create 4 jobs and assist in supporting 50 jobs.
Funding is made available through the Rural Economic Development Loan and Grant (REDLG) program, which provides grants or zero-interest loans to utilities that in-turn fund projects to create and retain employment in rural areas.
RTA is one of 18 REDLG loan and/or grant recipients nationwide recently announced by U.S. Agriculture Secretary Vilsack – an investment totaling more than $11.7 million.
"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,” Vilsack said. “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."
Since 2009, USDA Rural Development has invested over $16.5 million in support of rural small business development and expansion in rural communities throughout Minnesota through the REDLG program. 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 contact your local Area Office by visiting www.rd.usda.gov/mn.