USDA Rural Development Business Programs Director Randy Snider announced $200,000 in financing to Twin Valley Electric Cooperative to promote rural economic development in Southeast Kansas.
USDA Rural Development is partnering with Twin Valley Electric Cooperative to provide a $200,000 interest-free loan to RBK Manufacturing, an aftermarket auto parts manufacturing company in Coffeyville. RBK Manufacturing will utilize the financing to purchase new equipment and expand its product line. This project is expected to create three jobs. Funding is being provided through the USDA’s Rural Economic Development Loan and Grant (REDLG) program.
“In 2014, the REDLG program invested more than $10 million in eight Kansas businesses,” stated Snider. “The federal funds invested in rural businesses through this program, help spur economic development and create jobs in rural Kansas.”
Through the REDLG program, USDA provides zero-interest loans and grants to utilities that lend funds to local businesses for projects to create and retain employment in rural areas. Eligible applicants are USDA Rural Utilities Service borrowers.
Ron Holsteen, Chief Executive Officer at Twin Valley Electric Cooperative said, “The Twin Valley Electric Cooperative utilizes the REDLG program because it helps local businesses expand and provides them with interest free working capital. We are happy to partner with USDA and RBK Manufacturing to help bring new jobs to the community.”
Since 2008, the REDLG program has helped create or save more than 32,000 rural jobs, provided almost $338 million in economic development assistance, improved manufacturing capability, expanded health care and educational facilities and helped expand or establish almost 1,200 rural businesses and community projects.
USDA, through its Rural Development mission area, administers and manages housing, business and community infrastructure programs through a national network of state and local offices. Rural Development has an active portfolio of more than $210.5 billion in loans and loan guarantees. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America.