$740,000 federal funding to expand White County business

                                                                                                               

June 11, 2009-SPARTA, Tenn.—Rural Development Area Director Joe Woody and Caney Fork Electric Cooperative (CFEC) General Manager Bill Rogers announced a federal investment of $740,000 to complete funding for a new manufacturing facility in White County for Norcom of Tennessee, Inc. The announcement was made on site in Sparta Monday.

 

"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 partner with Caney Fork Electric to ensure Norcom is able to expand into the world marketplace from right here in White County."

 

A Rural Development zero-interest loan of $740,000 will be used by CFEC to provide a zero-interest loan for Norcom to expand their manufacturing operations with the construction of an additional 21,000 square-foot facility. Other funding includes a $556,000 grant from the state, $245,000 from Norcom, $610,000 in commercial financing and $250,000 project start up financing from USDA last year for a total investment in jobs for White County of $2,401,000.

 

The grants announced today are part of USDA Rural Development’s annual budget and are not funded through the American Recovery and Reinvestment Act of 2009.

 

Norcom specializes in bathtub systems and wrecker bodies. They have experienced growth in both areas and the new facility will give them the capacity to increase production and improve its warehousing and shipping.

 

"Norcom is an example of how important entrepreneurs are to the local community, by creating jobs that stay here because this is their home," said Rogers. "I'm glad Caney Fork and Rural Development are making it possible for our county to prosper and grow."

 

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

 

Caney Fork Electric Cooperative provides electricity for homes and businesses in DeKalb, Warren, White and Van Buren counties.

 

Others participating in the presentation included Sen. Lamar Alexander's representative Lyndsay Botts, Sen. Bob Corker's representative Betsy Ranalli, Rep. Lincoln Davis' representative Justin Walling, White County Mayor Herd Sullivan, White County Chamber Director Wallace Austin, CFEC Director of Membership Services Terry Mullican, owners of Norcom Jim and Carol DeKraker, Norcom Vice President of Operations Richard Peiper and RD Area Technician Alice Wills.

 

USDA Rural Development invests in rural communities through business development, community and homeownership programs. Last year Rural Development assisted more than 678,000 Tennessee families and businesses with more than $435 million in financial assistance through affordable loans, loan guarantees and grants.

 

For more information on Rural Development programs available in the White 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.

 

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