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USDA Announces Funding for Rural Business Development Grant Program

Name
Larry Yerich, Public Information Coordinator
City
Anchorage
Release Date

U.S. Department of Agriculture-Rural Development (USDA-RD) Alaska State Director Jim Nordlund today announced that three Alaska entities have been awarded a total of  $138,000 of funding through USDA-RD’s Rural Business Development Grant (RBDG) program.

Of particular interest is the largest grant of $92,136 going to the Haines Borough.  The Borough is developing an innovative project to convert their municipal buildings to wood heat.  Wood is a plentiful local resource that can replace expensive fuel oil for heating purposes.   “The equipment we are providing to the Haines Borough will assist a sensible and innovative project that will save taxpayer dollars and provide local jobs,” stated Nordlund.   “The Borough should be very proud of their efforts and we are happy to assist.”

The RBDG is a competitive grant designed to support targeted technical assistance, training and other activities leading to the development or expansion of small and emerging private businesses in rural areas that have fewer than 50 employees and less than $1 million in gross revenues.  Funding is contingent on the applicants meeting the conditions of the award.

The three entities receiving the RBDG funding are:

Haines Borough                                                                     $92,136                

This project will use RBDG funds to purchase an industrial wood chipper and log splitter which will be leased to a small business to produce and sell wood chips to support biomass boilers in the Haines Borough. A tribally owned business formed by the Chilkat Indian Association was identified as a partner for this project.

University of Alaska – Business Enterprise Institute         $31,500                

This project will use RBDG funds to provide targeted technical assistance to approximately 45 small businesses located in the Bethel and Kasilak Census areas, which are located in a USDA StrikeForce Area. The assistance includes small business coaching and advising, and general guidance provided via one-to one meetings, workshops and seminars and remotely delivered training materials. This project fills the gap for small business technical assistance, as there is no Small Business Development Center located in the region.

Kenai Soil & Water Conservation District                         $14,364                

This project will use RBDG funds to purchase an agricultural harvester, digger planter, and washing station to be leased to small farm businesses to process potatoes and other root crops. Currently small farms are harvesting the potatoes by hand with potato forks, then collecting and washing by hand. With access to this equipment, this project will help increase and expand local food production in the Kenai Peninsula.

USDA Rural Development has invested more than $2 billion in housing, community facilities, businesses, energy, water and sewer and telecommunications projects in 226 rural Alaskan communities since 2009.  These investments have helped to grow rural Alaska’s economy and enhance the quality of life for its residents.