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For Immediate Release – November 4, 2003Contact - Harold Alford (785) 271-2701 |
Bush Administration Unveils New Job Creation Effort For Rural America
Topeka, KS – Bush Administration officials have announced expanded efforts to stimulate job growth in rural areas through the creation of a new program to support the financing of new and expanding rural businesses. The signing of a collaborative agreement between officials of the U.S. Department of Agriculture and the U.S. Small Business Administration will provide rural businesses with greater access to venture capital investment funds through a newly created initiative called the Rural Business Investment Program (RBIP). The new initiative fortifies President Bush’s efforts to build a strong foundation for business development and job growth to serve as the economic stimulus in rural areas.
“This expansion of access to venture capital investment funds cements the foundation needed to support improved economic opportunities and an improved quality of life for rural Americans,” said Agriculture Under Secretary for Rural Development Thomas C. Dorr. “The Bush Administration is deeply committed to creating and saving jobs that produce the income needed for rural families to buy a home, further their education and build equity for their family’s future.”
The RBIP will allow newly formed venture capital investment companies to leverage private capital funds with government financial assistance and to obtain both government and private grant resources for technical assistance. The RBIP will increase the amount of capital available for investment in rural American businesses, and will provide a new resource for technical assistance to such businesses.
“Rural Kansas looks forward to accessing the RBIP as another resource to help create new jobs and enhance economic opportunities in our state”, commented USDA Rural Development State Director Chuck Banks.
Created by the 2002 Farm Bill, RBIP was provided funding through the Commodity Credit Corporation to support $280 million in guaranteed debentures and grants for technical assistance. Under the agreement signed, USDA will enlist SBA’s expertise in venture capital financing and reimburse SBA for carrying out the day-to-day management and operation of the program. SBA has operated since 1958 the Small Business Investment Company (SBIC) program, a public-private partnership managing $17.7 billion in more than 10,000 firms across America. SBIC companies employ 1.1 million people, and operate in diverse business sectors, regions of the country, and income groups, with more than $500 million annually in rural financings.
Bush Administration officials expect to begin accepting applications under the new program in about six months. Preparation and publishing of the guidelines for applying to participate in the program must be completed before funds can be expended
Information on program implementation will be published in the Federal Register and available on USDA’s web site at: www.rurdev.usda.gov
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