Lexington, Kentucky, Aug 02, 2013 -- USDA Rural Development State Director Thomas G. Fern has announced the approval of a $450,000 loan guarantee to Kentucky Highlands Investment Corporation for a loan to a London-area business. The United States Department of Agriculture remains focused on carrying out its mission, despite a time of significant budget uncertainty. Today’s announcement is one part of the Department’s efforts to strengthen the rural economy.
“The Obama Administration is committed to helping businesses create and save jobs in rural Kentucky,” said Fern. “I am pleased to work in partnership with Kentucky Highlands Investment Corporation to improve the economic climate of southeast Kentucky.”
USDA Rural Development funds will be used to provide Kentucky Highlands Investment Corporation a loan guarantee of $450,000 for a loan being made to KBC Distributing, LLC of London, Ky. KBC Distributing, LLC will use the loan funds to purchase the assets of a frozen beverage distributor. Ten jobs are estimated to be created or saved as a result of this loan guarantee.
The purpose of the Business & Industry Guaranteed Loan Program is to improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities. This purpose is achieved by bolstering the existing private credit structure through the guarantee of quality loans which will provide lasting community benefits.
USDA has several initiatives underway to support small businesses and the communities they serve. Altogether, USDA business and cooperative development programs have had a significant impact on rural communities – achieving record results under President Obama. Since 2009, USDA has provided more than 15,000 loans and grants through its business programs, helping more than 60,000 rural small businesses. For more information on USDA's business and cooperative development programs, visit http://www.rurdev.usda.gov/Business.html.
President Obama's plan to revitalize the rural economy has brought about historic investment over the past four years – including in America's small towns and rural communities. USDA, through its Rural Development mission area, has a portfolio of programs designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America.
USDA has made a concerted effort to deliver results for the American people, even as USDA implements sequestration – the across-the-board budget reductions mandated under terms of the Budget Control Act. USDA has already undertaken historic efforts since 2009 to save more than $828 million in taxpayer funds through targeted, common-sense budget reductions. These reductions have put USDA in a better position to carry out its mission, while implementing sequester budget reductions in a fair manner that causes as little disruption as possible.