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USDA Invests $8.3 Million to Expand Market Opportunities for Rural Businesses and People in Iowa

Name
Cecilia Lynch
City
Des Moines
Release Date
May 24, 2022

DES MOINES, May 24, 2022 – U.S. Department of Agriculture (USDA) Rural Development State Director Theresa Greenfield today announced that the Department is investing $8,348,249 for rural businesses and people in Iowa.

“Today, 12 Iowa businesses received over $8 million in USDA Rural Development loans and grants for nine projects to grow biofuels, expand hospital and healthcare services, and open a new daycare,” said Director Greenfield. “President Biden and Vice President Harris have made investing in rural America a priority – with these investments they have delivered for Shell Rock, Clarion, Cherokee, Kalona, and Goldfield.”

The funding will help keep resources and wealth right at home through business expansion. It will help companies hire more workers and reach new customers. It will open the door to new economic opportunities for communities and people who historically have lacked access to critical resources and financing. It will also help create jobs, grow businesses, and find new and better markets for the items they produce.

Today’s announcement is part of a larger nationwide announcement made by Agriculture Secretary Tom Vilsack for $770 million to help create new and better market opportunities. The nine Iowa investments are all made through the Rural Economic Development Loan and Grant Program and are listed below.

  • Corn Belt Power Cooperative will provide a $1.5 million pass-through loan to Zephyr-Rocket LLC in Butler County near Shell Rock. This project will help install two new track additions which will allow more capacity for receiving in-bound trains, inspections, and brake testing. Zephyr-Rocket and its affiliates operate a short-line rail system in northeast Iowa.
  • Butler County Rural Electric Cooperative will provide a $1.5 million pass-through loan to Zephyr-Rocket LLC in Butler County near Shell Rock to install two new track additions which will allow more capacity for car classification, customer car storage, and customer support functions.
  • In Cherokee County, C-M-L Telephone Cooperative Association will use a $300,000 grant to supplement its revolving loan fund which will then help construct a new ambulance station for Cherokee Regional Medical Center in Cherokee.
  • Greene County Early Learning Center in Jefferson will receive a $1 million pass-through loan from Midland Power Cooperative to construct a new childcare facility.
  • In Washington County, Kalona Cooperative Telephone Company is receiving a $248,249 grant to establish a revolving loan fund. The revolving loan fund will assist with the renovation of the Iowa Mennonite Benevolent Association Assisted Living Facility in Kalona. 
  • In Wright County, Prairie Energy Cooperative will provide a $1 million pass-through loan to Iowa Specialty Hospital in Clarion, Iowa. This investment will enable the hospital to make renovations, create 16 jobs, and expand medical services. 
  • In Wright County, Prairie Energy Cooperative will provide a $1.5 million pass-through loan to Corn LP, in Goldfield. This project will enable the ethanol plant to purchase advanced processing equipment, create nine jobs, and expand the business. 
  • In Wright County, Corn Belt Power Cooperative will use a $300,000 grant to provide additional financing for its revolving loan fund which will then fund renovations to Iowa Specialty Hospital in Clarion.
  • In Wright County, Corn Belt Power Cooperative will provide a $1 million pass-through loan to Iowa Specialty Hospital in Clarion to enable the hospital to make renovations. 

Background:

USDA Rural Development has 11 offices across the state to serve the 1.7 million Iowans living in rural communities and areas. Office locations include a state office in Des Moines, along with area offices in Albia, Atlantic, Humboldt, Indianola, Iowa Falls, Le Mars, Mount Pleasant, Storm Lake, Tipton, and Waverly.

To learn more about investment resources for rural areas in Iowa, call (515) 284-4663 or visit www.rd.usda.gov/ia. If you’d like to subscribe to USDA Rural Development updates, visit our GovDelivery subscriber page.

USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean-energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.

Under the Biden-Harris Administration, Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, tribal and high-poverty areas. For more information, visit www.rd.usda.gov.

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USDA is an equal opportunity provider, employer, and lender.