CALEDONIA, Minn., Jan 15, 2013 -- USDA Rural Development State Director Colleen Landkamer visited Sno-Pac Foods today to highlight how revolving loan funds from the USDA and the City of Caledonia helped the local business grow and provide jobs in the region. Landkamer and other officials toured the Sno-Pac facility in Caledonia after a brief event highlighting how USDA’s revolving loan programs assist rural businesses with job creation and growth.
“In 2013, USDA will be focusing on its revolving loan fund programs that benefit rural businesses,” Landkamer said. “Sno-Pac Foods is an excellent example of how these revolving funds boost job creation and economic development in Greater Minnesota. Whether it’s in Caledonia or the Twin Cities, it’s important that we provide the resources and tools necessary for businesses like Sno-Pac to access valuable working capital in order to compete in a global economy.”
USDA Rural Development offers several programs to establish revolving loan funds through local government entities or nonprofits. The funds are ultimately used to assist local businesses or economic development projects. A revolving loan fund is established when USDA makes a loan or a grant award to an intermediary, usually a local government entity, nonprofit or Indian tribe. The intermediary then re-loans the funds to an ultimate recipient, usually a private business, for economic development or job creation projects.
When the ultimate recipient repays the loan, the intermediary can make additional loans to local businesses for economic development and job creation projects.
The City of Caledonia was selected to receive a $250,000 USDA loan in 1995 to establish a revolving loan fund. The city has made two separate loans to Sno-Pac, one in 1995 and one in 2005, for projects that helped Sno-Pac grow.
Revolving loan funds like the one used by Caledonia and Sno-Pac are available throughout rural Minnesota. To see a complete database of funds by county, visit www.rurdev.usda.gov/mn and click on “Find a Revolving Loan Fund” in the right menu box.
You may also contact Rural Development’s area office in Faribault at (507) 332-7418 or Austin at (507) 437-8247 for more information.