$389,000 federal funding to expand Warren County business

                                                                                                               

May 19, 2008 - McMINNVILLE, Tenn. —Rural Development Area Director Joe Woody, Caney Fork Electric Cooperative (CFEC) General Manager Bill Rogers and Southern Manufacturing Group, Inc. (SMG) Owner Ray Jones today announced a federal investment of $389,000 to complete funding needed for expansion of SMG’s manufacturing facilities in Warren County.  The announcement was made at CFEC headquarters in McMinnville.

 

“Small business is the economic engine of rural communities, creating good jobs and helping maintain a healthy, diversified local economy,” said Woody. “Thanks to the support of our congressional delegation Rural Development has the financial resources to support our good partner Caney Fork Electric as they help SMG compete in the world marketplace from right here in Warren County.”

 

A Rural Development zero-interest loan of $389,000 will be used by CFEC to provide a zero-interest loan for SMG to construct a new manufacturing facility.  Additional funding includes a Tennessee Valley Authority grant of $150,000, $179,000 loan from Home and Bank and $60,000 from SMG for a total investment in Warren County jobs of $778,000.

 

SMG manufactures engine valves and other automobile parts. The additional facility financed with this funding will provide additional space and equipment needed to expand valve production to meet growing customer demand and the capacity to take advantage of opportunities in new markets. Jones started SMG in 1993 with 10 employees. Current expansion plans will take the plant to about 60 jobs ranging from engineers and machinists to forklift operators and office staff.

 

“SMG is an example of how important entrepreneurs are to the community, building businesses and creating jobs that stay here because this is their home,” said Rogers.  “I’m glad Caney Fork and Rural Development can help companies like SMG prosper and grow.”

 

CFEC has so far partnered with Rural Development on 18 business development projects since 1992. “Over a thousand jobs have been impacted by investments totaling over $5.5 million,” said Rogers.  “This is a clear example of our tax dollars coming back to the community and making a difference in all of our lives.”

 

The Rural Development rural economic development loan program provides funding to local electric cooperatives to be invested in businesses within their service area. The program promotes a healthy economic environment and supports the creation of good private-sector jobs in rural communities.

 

Others participating in the presentation included Rep. Lincoln Davis’ representatives Justin Walling and Cara Rains, Warren County Mayor John Pelham, CFEC Director of Member Services Terry Mullican, IDB Executive Director Jeff McCormick, and TVA project manager Rachel Crickmar.

 

USDA Rural Development is committed to the future of rural communities in Tennessee by investing financial and technical assistance through housing, community and business development programs.  In Fiscal Year 2007 Rural Development assisted more than 600,000 Tennessee families and businesses with more than $308 million in financial assistance through loans, loan guarantees and grants.

 

For more information on business development, community facilities or homeownership programs available in the Warren County area contact the Rural Development Area Office in Cookeville at 931-528-6539 ext 2, toll free at 800-342-3149 ext. 1493 or visit us online at www.rurdev.usda.gov/tn.