USDA RURAL DEVELOPMENT SUPPORTS MICHIGAN BIODIESEL

LANSING, Jan. 5, 2007 – USDA Rural Development Director for Michigan Gene DeRossett on Thursday presented Michigan BioDiesel LLC with a guaranteed loan check for $3 million.

“Currently USDA Rural Development is supporting more than a dozen projects to develop energy in Michigan,” said DeRossett.  “We are pleased to have Michigan BioDiesel as one of our partners.”

Michigan BioDiesel’s facility in Bangor, Michigan, has a capacity of 10 million gallons.  The agency partnered with LaSalle Bank to provide a conditional commitment for a $3 million guaranteed loan to purchase the machinery and equipment for the project.

DeRossett has previously toured Michigan’s first operational biodiesel facilty in Gladstone.  A third biodiesel plant is under construction in Milan and three more are under consideration.

USDA Rural Development's mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. As a venture capital entity, Rural Development provides equity, liquidity, and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA's web site at http://www.rurdev.usda.gov/

###