USDA Rural Development State Director Clarence W. Hawkins today announced funding for the purchase of a hotel in Alexandria, Louisiana.
“This announcement is a result of several meetings with Southern Hospitality Group on how Rural Development programs can assist with growth and economic development in rural communities. Rural Development is committed to helping improve the economy and quality of living in rural towns and cities. Through our programs and services, we are bringing reliable resources like water, housing, essential community facilities, and economic development to make our rural communities attractive and sustainable,” said Clarence W. Hawkins State Director.
The funding is being provided through USDA’s Rural Development Business and Industry Program. Southern Hospitality Group, LLC received a conditional commitment for a guaranteed loan to purchase a seven story 173 room hotel in downtown Alexandria. Southern Heritage Bank is the lender for this project. The $7.5 million loan is contingent upon the recipient meeting the terms of the loan agreement.
Southern Hospitality Group will use the funding to purchase and renovate an existing hotel. Once all renovations are complete, the hotel will operate as a Holiday Inn.
USDA Rural Development invests in jobs, infrastructure, community development, health, education, homeownership, and affordable rental housing to improve the economic health of rural communities. In Fiscal Year 2014, the agency investment more than $995 million in rural Louisiana through affordable loans, loan guarantees, and grants.
President Obama's historic investments in rural America have made our rural communities stronger. Under his leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America's economy, small towns and rural communities.