NEWS RELEASE

United States Department of Agriculture • Rural Development

1221 College Park Drive, Suite 200, Dover, DE  19904

Phone: (302) 857-3580 • Fax: (302) 857-3640 • TDD: (302) 857-3585 • Web: http://www.rurdev.usda.gov

Local Bank and USDA Provide Financing for new Restaurant

Fallston, Md., March 24, 2010 --- When Donald Dietz, Jr. approached his local bank about a new business idea, he didn’t know the backing for his loan would be supported by the federal government.

Since 1972, the United States Department of Agriculture (USDA) has provided financial support for businesses in areas with a population of 50,000 or fewer.  “In today’s environment, economic recovery is the driving factor in everything we do,” said Jack Tarburton, USDA Rural Development State Director.  “We don’t want people to be confused that because we are USDA that we only make loans to farmers.  USDA also guarantees loans to new or existing businesses.  We are pleased to be a part of this new restaurant and commend Mr. Dietz for diversifying his business operation.”

Mr. Dietz is the owner and operator of “Don’s Flowers and Produce” that has been in his family for 55 years located at the intersection of BelAir Road and Reckord Road.  Mr. Dietz grew up at the family business and at the ripe age of eight he was working with his grandmother stocking greenhouses, unloading trucks and helping with produce deliveries.  Now some 37 years later, Mr. Dietz carries on the family tradition selling local produce, annuals and perennials seven months of the year.   His dream was to keep his seasonal employees working year round and came up with the idea of “Tropical Treats N’ Such” – a casual restaurant that is scheduled to open in April.   “The process started about 3 years ago when I came up with the idea,” said Mr. Dietz.  “During these tough economic times banks are nervous and it wasn’t easy getting a loan.”   Dietz learned about the USDA guaranteed loan program from PeoplesBank located in Hunt Valley.  

USDA Rural Development has been stepping up their marketing efforts to promote their Business and Industry Guaranteed Loan Program by meeting with top executives and loan officers at financial institutions, including community banks from the Lower Shore to the Upper Shore.  USDA first met with PeoplesBank in Hunt Valley in March 2009 to explain what the USDA guaranteed business loan program could offer.  

“The past two years have been challenging for small business owners and their banks,” said James Hess, III; PeoplesBank, Vice President, Maryland Business Banking.  “Economic uncertainty, coupled with losses on Wall Street, dampened the lending activity of most banks in the region. Community banks, such as PeoplesBank rallied to the aid of their customers and crafted proactive solutions which allowed business owners to forge ahead and seize opportunities for future growth.  The Business and Industry Guaranteed Loan Program provided the solution in the form of a credit enhancement which enabled PeoplesBank to extend the financing necessary for the completion of Don’s project.”            

Tarburton added, “The passing of the “American Recovery and Reinvestment Act”, also known as the Stimulus Bill provided an infusion of money that is designed to create and save jobs and help rural communities grow and prosper.  Our agency has about $41 million available between now and September to help businesses to retain or add jobs and improve, develop or buy land, buildings, machinery or supplies.”

 USDA Rural Developments mission is to increase economic opportunity and improve the quality of life for rural residents.  In 2009, the agency returned more than $421 million to rural Maryland.  USDA Rural Development funds more than 40 programs that support agriculture, business opportunities, homeownership, home repair, rental housing, broadband technology, public safety, health care, education, social and cultural needs and energy related projects.  Additional information on rural programs is available by calling their State Office that serves Maryland and Delaware at (302) 857-3625 or by visiting their website at www.rurdev.usda.gov.

“USDA is an equal opportunity provider, employer and lender.”

To file a complaint of discrimination write USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W.,

 Washington, D.C. 20250-9410, or call (800) 795-3272 (voice), or (202) 720-6382 (TDD).