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Success Stories
Iowa | Kansas | Kentucky | Oklahoma | South Dakota | Tennessee
For detail information about the program visit the Rural Economic Development Loans webpage.
Return to Success Stories' Homepage
Iowa:
How Rural Development Helped:
The Co-Line Welding, Inc. project will utilize Rural Development Funds that were awarded in the amount of $450,000 to provide grants to Rural Utilities Service borrowers to provide economic development. The purpose of this pass-through zero-interest loan was to assist Co-Line Welding, Inc. located near Sully in rural Mahaska County, Iowa in the purchase of machinery and equipment.
The Results:
As a result of this project, 15 jobs will be created, 70 will be saved and 1 business will be assisted.
Kentucky:
Outline of Need:
P.J. Murphy Forest Products Corporation is a family-owned and operated Company, established in 1940. The company produces: 1) SANI-CHIPS which are manufactured in NY, PA and WI for use as bedding for laboratory animals: and, 2) wood flour which is manufactured in Bowling Green, Kentucky and used as filler in the plastics industry. Due to the increased demand in the wood flour industry, the Company can no longer meet demand with their existing facilities. The existing Bowling Green facility is incapable of further expansions; therefore, a Wayne County location was selected. This location will not only help to meet the increasing demand, but will reduce the trucking of the raw material by 125 miles each way.
How Rural Development Helped:
The $250,000 funding will be used to purchase new equipment for the new facility. Wayne County is one of the designated Empowerment Zone counties. The proposed facility will create 8 new jobs in Wayne County which has an unemployment rate of 110% above the National rate and 106% above the State’s rate.
The starting wages for the jobs provided by the project will be 1.2%-1.8% above the current per capita income of the County. This further supports the Administration’s commitment to increase economic opportunities and improve the quality of life in rural communities by providing capital for economic development in some of the most isolated and rural areas of the country.
The Results:
Approximately 8 jobs will be created as a result of this project. An additional 7 jobs will be created through transportation of raw materials and product.
Kansas:
Grand Opening of Grocery Store on May 10, 2006
Successes:
Project benefits over 3,000 area residents
Gene’s Heartland Foods is the only grocery store in Ellsworth, Kansas
The new store is projected to create 10 additional jobs for the community
Challenges: None
Action Plan: Continue normal servicing of the project [Agency]
USDA Rural Development Program: $450,000 Loan
Project Narrative:
Clasen Inc. owns grocery stores in six rural communities across Kansas, including the only grocery store in Ellsworth, KS (Gene’s Heartland Foods). The store will provide a deli, flower shop, bakery and catering services. The new store will provide the area residents with a better choice of services and will help keep local dollars in the community instead of losing this economic activity to urban markets.
Funding for the 21 square foot project includes a commercial loan in the amount of $1,100,000, an applicant contribution of $350,000 and the loan from USDA Rural Development in amount of $450,000.
Oklahoma:
Outline of Need:
The Northpark Professional Center project lies within Caddo County which is one of our fourteen targeted pervasive poverty counties. The project is still under construction. Approximately 3 jobs are projected to be created directly and approximately 30 indirect jobs will be created within the business enterprises which will lease the space. These new jobs for a Town with a population of 6645 are a significant impact in addition to the increase in sales tax revenues it will generate for the benefit of the Town.
How Rural Development Helped:
Our $352,000 REDL was used with $122,000 of supplemental funding to remodel, expand and equip a professional building to lease by business enterprises in the rural town of Anadarko.
The Results:
Potentially 33 jobs will be created.
South Dakota:
Outline of Need:
The Artesian/Letcher School District Project was awarded $450,000 for the construction of new K-12 school building. The school is in operation for its first school year and is a very attractive new facility. This particular project is a great example of what can be done with very strong community support.
The Results:
There were 55 jobs created as a result of this project.
Tennessee:
Outline of Need:
Forked Deer Electric Cooperative
Lauderdale County Health Department
Ripley, Tennessee
How Rural Development Helped:
Funds were used to construct a new 8,000 sq/ft County Health Department facility in Ripley, Tennessee, which will be owned by Lauderdale County.
The Results:
As the result of this program, 2 jobs were created and 18 jobs saved.
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