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USDA Helps Rural Businesses Create Jobs and Increase Economic Opportunities

Name
Nikki Gillespie
City
ST. PAUL
Release Date

USDA Rural Development State Director today awarded nearly $750,000 through 7 grants to help support the start-up or expansion of rural Minnesota small businesses.

   "These investments are meant to support the development of rural small businesses to revitalize our rural small towns and communities through capital and technical assistance," Landkamer said. “This will help rural and Tribal communities throughout the state maintain their current workforce and create new job opportunities.”

   USDA is awarding the grants through the Rural Business Development Grant (RBDG) program. Recipients may use the funds to provide technical assistance, training and job-creation activities.

   For example, the City of Appleton located in southwestern, M.N., is receiving a $99,000 grant to establish a revolving loan fund, in order to provide loans to small local businesses and assist with financing for operations and development.

   USDA is also working to expand economic opportunities for Native Americans and rural residents throughout the state. For example, the Red Lake Band of Chippewa is receiving a $91,340 grant to identify, train, and provide technical assistance to existing and prospective rural entrepreneurs. This funding will assist nine businesses and create 21 new jobs.

   Other RBDG recipients include Region Five Development Commission in Staples, Minn., which has been selected to receive a $98,000 grant to provide training and technical assistance on crowdfunding to small and medium rural enterprises.

   Nearly $20 million through 385 grants were awarded nationwide through the RBDG program, including those announced in Minnesota.

   USDA's Rural Business Development Grant program is one of several that support rural economic development. Since 2009, USDA's Rural Business-Cooperative Service has helped 85,000 rural businesses.

   The City of Luverne, Minn., population 4,800, is an example of a small town USDA has helped. Luverne used a $99,000 USDA grant in FY 2013 to establish a revolving loan fund to provide affordable financing for downtown businesses. City leaders wanted to help downtown merchants upgrade their shops and eateries so they could attract more visitors and economic activity. Like many cities across the country, Luverne had lost shoppers to the region's larger towns and big box stores. So far, 13 businesses have been helped as a result of USDA's grant.  

   For more information on RBDG or any USDA Rural Development program, visit www.rd.usda.gov/mn and contact your local Area Office.