Lexington, KY, May 09, 2012 -- Agriculture Secretary Tom Vilsack today announced the selection of two recipients in Kentucky for loans and grants to spur economic development and create or save jobs in rural areas.
“This funding will help rural businesses and entrepreneurs obtain the financing they need to thrive, grow and create jobs,” Vilsack said. “These grants and loans are part of the Obama Administration’s ongoing commitment to ensure that rural communities attract capital investments that lead to business development and job creation.”
Rural Development State Director Tom Fern said USDA is providing the loans and grants through the Rural Economic Development Loan and Grant (REDLG) program. USDA provides zero-interest loans to local utilities which, in turn, lend the money to local businesses for projects that will create and retain employment in rural areas. The ultimate recipients repay the utility directly.
The REDLG program has assisted a number of rural communities across Kentucky. Last year, USDA provided a $740,000 rural economic development loan to Fleming-Mason Energy Cooperative in Maysville to support Hospice of Hope. The funds are being used to help construct a 32-unit assisted living and eight-unit inpatient care facility in Mason County.
Funding of each loan or grant announced today is contingent upon the recipient meeting the conditions of the agreement. Loan and grant awards in Kentucky include:
• Salt River Electric Cooperative Corporation, $214,100 loan; to help Patrimonio Group LLC build and buy equipment for a 6,000-square-foot office and production facility for a company that manufactures custom cabinetry and woodworking primarily for residential markets.
• Tri-County Electric Membership Corporation in Lafayette, TN, $205,000 loan; to help a firm in Burkesville, KY, expand a building.
Since taking office, President Obama’s Administration has taken historic steps to improve the lives of rural Americans, put people back to work and build thriving economies in rural communities. From proposing the American Jobs Act to establishing the first-ever White House Rural Council – chaired by Agriculture Secretary Tom Vilsack – the President wants the federal government to be the best possible partner for rural businesses and entrepreneurs and for people who want to live, work and raise their families in rural communities.
USDA, through its Rural Development mission area, administers and manages housing, business and community infrastructure and facility programs through a national network of state and local offices. Rural Development has an active portfolio of more than $165 billion in affordable loans and loan guarantees. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America.
USDA is an equal opportunity provider and employer. To file a complaint of discrimination, write:
USDA, Office of the Assistant Secretary for Civil Rights, Office of Adjudication, 1400 Independence Ave., SW, Washington, DC 20250-9410 or call (866) 632-9992 (Toll-free Customer Service),
(800) 877-8339 (Local or Federal relay), (866) 377-8642 (Relay voice users).