Huron, S.D. – August 26, 2021 – USDA Rural Development Acting State Director Hally Witte today announced funding to a South Dakota business which will provide access to business capital through a loan guarantee.
The Department has invested $1.2 billion in loan guarantees to help rural businesses in 41 states, Guam and the Virgin Islands. Of these investments – made through the Business and Industry Loan Guarantee Program and the Business and Industry CARES Act Program – Sioux Falls, South Dakota based East Dakotah Natural Foods Cooperative received $961,000 from the Business and Industry Loan Guarantee Program.
This Rural Development investment was made possible through a partnership with Black Hills Federal Credit Union. The project funds will be used to purchase equipment and make leasehold improvements for the expansion of a grocery store in Sioux Falls, South Dakota. The grocery store is a cooperative-owned store that provides the area with the opportunity to purchase food that is locally farmed and ranched, offers nutritional value, and is sourced from entities that offer fair wage and fair labor practices. This project supports value-added agriculture with financial benefits to farmers.
“Rural businesses and agriculture are an important part of local economies and communities,” said Witte. “Partnering with local lenders to help rural businesses flourish is a winning combination.”
USDA has invested $811 million through the Business and Industry (B&I) Loan Guarantee Program since the start of the current fiscal year. This assistance has helped businesses create or save more than 6,000 jobs in rural areas.
Investments under the B&I program are 36 percent higher than they were this time last year. Applications have increased by 44 percent. These increases are due in part to a series of program improvements USDA adopted under the new OneRD Guarantee Loan Initiative.
This initiative increased the USDA loan guarantee to 80 percent for investments greater than $5 million. The previous guarantee percentages were 70 percent for loans less than $10 million and 60 percent for loans greater than $10 million. This improvement has made the program more attractive to capital-intensive businesses such as manufacturing companies.
USDA also invested $380 million in rural businesses through the Business and Industry CARES Act Program, which was established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This assistance has helped 95 rural businesses create or save more than 6,000 jobs in rural areas.
The investments USDA announced are helping rural businesses and workers in Alaska, Alabama, Arkansas, Arizona, California, Colorado, Delaware, Florida, Hawaii, Georgia, Iowa, Idaho, Illinois, Indiana, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Montana, Mississippi, North Carolina, North Dakota, Nebraska, New Jersey, New York, Nevada, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Vermont, Virginia, Washington, Wisconsin, West Virginia, Wyoming, Guam and the Virgin Islands.
Under the Biden-Harris Administration, USDA 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/sd.
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