|RURAL DEVELOPMENT FUNDS HELP SOLIDIFY BUSINESSES FUNDING NEEDS IN RURAL NEBRASKA|
|, Feb 14, 2013
Outline of Need
Nebraska Northwest Development Corporation (NNDC) located in Chadron Nebraska and serving the three northwest Nebraska counties of Dawes, Sheridan and Sioux; approached Rural Development in need of additional revolving loan funds. A previous Rural Business Enterprise Grant (RBEG) in the amount of $100,000 was unable to keep up with the need for loan funds in this area of the state.
How Rural Development Helped
Building on previous discussions between Rural Development and NNDC, it was clear the amount of funds needed to significantly impact local entrepreneurs would best be served through an Intermediary Relending Program (IRP) loan. An IRP application request in the amount of $250,000 was submitted to Rural Development, competing nationally for funds. NNDC was awarded the full amount requested.
Six businesses in four rural Nebraska communities have benefited from IRP revolving loan fund assistance: a dental clinic, a lawn and garden center, a lumber company, bowling lanes, a retail clothing establishment, and a grocery store. Revolving loan funds have been used for various purposes including construction and renovations, working capital, inventory and equipment, repairs and improvements, land and building. IRP funds including an investment from NNDC accounted for 12.76 percent of the total project costs for these six businesses. Additional funds from local banks, owner equity, a Community Development Block Grant (CDBG), and the previously funded RBEG revolving loan funds accounted for 87.24 percent. Total project costs (total funds injected into four rural communities) equal $2,155,300, creating or saving 40 jobs. In addition to IRP and RBEG revolving loan funds in Dawes, Sheridan and Sioux counties, NNDC also administers a CDBG awarded to Dawes county.
“NNDC would not have been able to assist these businesses had it not been for the IRP funds,” said Deb Cottier, executive director of Nebraska Northwest Development Corporation. “Typically, these projects would not go forward without some assistance in the form of gap financing. NNDC is a firm believer in USDA Rural Development’s programs.”