U.S. flag

An official website of the United States government

Dot gov

Official websites use .gov
A .gov website belongs to an official government organization in the United States.

Https

Secure .gov websites use HTTPS
A lock () or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

USDA Rural Development Delivers $37 Million Through Business Programs to Rural Nebraska

Name
Vicki Schurman
City
Lincoln
Release Date

USDA Rural Development State Director Maxine Moul announced that $37.4 million was delivered to rural Nebraska in federal fiscal year 2016 through its various business programs, which created and/or saved 345 jobs by assisting 216 businesses, 85 ag producers, and one cooperative.

“USDA Rural Development believes in a strong economy and our business programs help to accomplish this in rural Nebraska,” said Moul. “We look forward to Fiscal Year 2017 and continuing to meet the needs of rural businesses and producers.”

The Business and Industry (B&I) Guaranteed Loan program made available more than $31.2 million that, through leveraging, assisted five businesses. The B&I Guaranteed Loan Program funds business and industrial development to create and maintain employment, and to expand and improve the economic climate.  Prairie Catalytic, LLC teamed up with Heartland Bank and was approved for a $24 million guaranteed loan.  Prairie Catalytic will construct an ethyl acetate plant in Columbus, NE adjacent to the Archer Daniels Midland Company (ADM).  The new plant will use bio-ethanol as the only feed stock through the use of a bolt-on strategy ethyl acetate facility.  Construction of the facility is anticipated to start in late 2016 with production set to begin about a year later.  The facility will create 17 jobs which will average $31.00 per hour.

The Rural Business Development Grant (RBDG) program provided 11 grants totaling more than $905,109, including five Native American Earmark grants.  Keith County Area Development (KCAD), which is a non-profit in Ogallala, NE, received funding to start a Revolving Loan Fund (RLF) for small businesses operating in Keith County, NE.  KCAD was funded $60,000 and worked with local partners to leverage an additional $85,000 to make a strong revolving loan fund capable of assisting many small business in the area.  KCAD and its partners believe the new RLF will have a major impact on the success of business retention and expansion in Keith County.  KCAD’s project will provide access to gap financing that many businesses need in order to expand and will allow startups that are short on capital to get off the ground.

The Rural Microentrepreneur Assistance Program (RMAP) provided three grants totaling $193,807 bringing the total of training and technical assistance dollars for rural microentrepreneurs to more than $1 million awarded since 2010.  Additionally, five RMAP recipients have received eight loans totaling $2.6 million which have been used to make 80 loans in the amount of $50,000 or less to microbusiness in rural Nebraska.  RMAP loan dollars were leveraged with nearly $2.3 million additional dollars and have created or saved an estimated 263 jobs. The Nebraska Enterprise Fund in Oakland received a $250,000 Rural Microentrepreneur Assistance Program loan to further capitalize their RMAP revolving loan fund. 

Through the Rural Economic Development Loan and Grant (REDLG) program, three grants totaling $848,400 were made.  The Stanton County Public Power District in Stanton, received a $300,000 grant to assist Pilger Development Fund finance the cost of the equipment for the new Pilger Community Center.  On June 16, 2014, disastrous tornadoes struck the Village of Pilger and the Pilger Community Center and the Senior Center were destroyed.  The Pilger Community Center surfaced as the number one priority in bringing back the sense of community for the area. Plans for the facility include a Senior Center which will provide Health Screenings, Fitness Center, Professional Catering Kitchen, Meeting and Conference Spaces which will also accommodate two-way interactive teleconferencing and educational programming, and a Portable Stage/Event Center.  This project will also help create two jobs in the community of Pilger.

The Intermediary Relending Program (IRP) provided the Rural Investment Corporation in Lyons with a $500,000 loan to establish a Revolving Loan Fund (RLF) in 24 counties in Nebraska where the median household income is below the state average.  This new IRP loan program will provide gap financing to businesses with an emphasis on the underserved and disadvantaged rural areas in Nebraska.  This project is expected to assist at least six businesses, creating or retaining 14 full-time equivalent jobs.

The Value Added Producer Grant (VAPG) program invested in 17 projects throughout Nebraska providing nearly $1.4 million. Sandhills Honey Bottling, Co. is an independent producer that bottles raw honey and currently sells throughout Central Nebraska.  Sandhills Honey Bottling, Co. was awarded a $49,500 grant to help expand their honey distribution network from Central Nebraska to statewide distribution by adding up to 100 new retail outlets.  Grant funds will used to purchase additional bottling supplies, hiring an additional employee, and help pay for the additional marketing and distribution costs.  There will be two jobs created and/or saved as a result of the project.

The University of Nebraska Board of Regents received a $165,970 Socially Disadvantaged Groups Grant (SDGG) that will be used by the Nebraska Cooperative Development Center (NCDC) in Lincoln, Nebraska to provide targeted technical assistance and training in rural Nebraska’s Native American and Latino communities.  Partnering with the Center for Rural Affairs (CFRA) in Lyons, Nebraska, cooperative development business structure will be addressed through workshop education and individualized support to Native Americans, Latinos and women.  It is anticipated a minimum of five cooperative businesses will be formed addressing arts, poultry, livestock, fruit and vegetable production and marketing.  

Nebraska Rural Development processed 97 applications for the 9007 Rural Energy for America Program (REAP).  Nebraska awarded funds to 52 projects for $1,065,714 for renewable energy and energy efficiency projects. The Advanced Biofuel Payment Program issued eight payments totaling $845,995 to advanced biofuel producers to support and ensure an expanding production of advanced biofuels.  Additionally, an energy auditing program was funded under the REAP Energy Audit and Renewable Energy Development Assistance for $40,000 to the Panhandle Resource Conservation and Development, Inc. (RC&D).  The funds will be used to conduct energy audits for rural small businesses and agricultural producers who are applying for the REAP program. 

The total Business and Cooperative Programs portfolio reflects in excess of $397 million in funding since 1996. There is funding available for Fiscal Year 2017 and applications are being accepted.

Please contact Rural Development Business Program Specialist Brant Richardson at brant.richardson@ne.usda.gov or (402) 437-5568 to inquire about Fiscal Year 2017 programs and funding availability.

President Obama’s plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President’s 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. USDA’s investments in rural communities support the rural way of life that stands as the backbone of our American values.