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USDA Seeks Applications for Loans and Grants to Help Grow Rural Businesses and Spur Economic Development

Name
Tammi Schone
City
Huron
Release Date

Rural Business Cooperative-Service Administrator Sam Rikkers announced that USDA is seeking applications nationwide for loans and grants to help support the start-up or expansion of rural businesses.

"Our small, rural businesses need financing to compete in the global economy," Rikkers said. "With this announcement, USDA is demonstrating its continued commitment to investing in small towns and rural communities. These loans and grants will spur entrepreneurship, create jobs and improve the quality of life in rural America."

The funding is being provided through the Rural Economic Development Loan and Grant (REDLG) program. Under this program, USDA provides zero-interest loans and grants to local utilities, which use the funding to create revolving funds for projects that will create or retain jobs in rural areas.

USDA is making $37 million in loans and $11 million in grants available nationwide. These funds are competed for at a national level. A recipient may receive a loan of up to $1 million, and/or a grant of up to $300,000.

Since 2009, USDA has invested more than $330 million in loans and grants through the REDLG program. From those funds, the state of South Dakota has received $4,660,000 in loan and $7,566,000 in grant.  In 2015, West River Electric Association, Inc. received a $720,000 loan for West River Electric Association, Inc. to promote rural economic development.  The funds will be lent at zero percent interest to the Wall School District to assist with the construction of an athletic complex and save 40 jobs within the school district. The new facility includes a synthetic turf field to accommodate football practice and home games as well as an all-weather track for practice and to host competition meets.  The school intends to continue to promote a healthy lifestyle by incorporating the use of the new facility for school sponsored functions and community based activities such as youth football, cheer leading, AAU wrestling, youth gymnastics and girls scouts.

The REDLG program has also been successful in StrikeForce counties. The StrikeForce for Rural Growth and Opportunity Initiative is part of the Obama Administration's commitment to address persistent poverty across America. As areas of persistent poverty are identified, USDA staff work with state, local and community officials to increase awareness of USDA programs and help build program participation through intensive community outreach and technical assistance. In 2014, Traverse Electric Cooperative, Inc. received a $300,000 grant to assist the Rosholt School District in making improvements such as installing heating/cooling, ventilation, and lighting to the older part of the Rosholt High School building. 

For information on how to apply for REDLG loans or grants, contact your Rural Development state office or see page 14415 of the March 17 Federal Register. The first round of applications is due March 31, 2016, and the second round of applications is due June 30, 2016.

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.