BISMARCK, N.D., Jun 12, 2012 -- USDA Rural Development State Director Jasper Schneider announced that 26th Street Hospitality, LLP and Siegrist, Inc. received financing to build and expand their business operations in western North Dakota.
“Energy production in western North Dakota has created an increased demand for services to support the industry,” said Schneider. “By partnering with private enterprise, USDA will help these businesses address some of those needs while spurring economic activity.”
Due to the need for lodging, 26th Street Hospitality, LLP formed to construct a MainStay Suites Hotel in Williston. The partnership secured a $7.3 million USDA loan guarantee to build an 89-room extended stay hotel. Rooms will offer oversized sleeping areas and full kitchens catering to guests who stay for more than a week, but less than a year. There will also be large suites and amenities that are not typically offered at traditional lodging facilities. Construction on the north side of Williston is planned for later this summer and will create 15 new jobs when completed.
Siegrist Inc., d/b/a Conservative Trucking in Crosby, received an $840,000 USDA loan guarantee to provide working capital as the business expands. The company supplies short haul trucking for oil well services. Specifically they haul hazardous water and fracking fluids to and from well sites. As water is an essential component to drilling, the demand for transporting is high. This has presented the trucking business with great opportunity. Currently employing 40 people and 23 owner operators, the company recently built a new office and shop with plans to create 12 additional jobs.
USDA Rural Development partnered with BlackRidge Bank in Bismarck to provide loan guarantees on both projects. Financing is made available through the USDA Rural Development Business and Industry Program.