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Business Programs Success Stories
Pennsylvania
Business and Industry Guaranteed Loan Program
Outline of Need:
Keystone Potato Products, LLC is a corporation created to use off-grade potatoes that other businesses would turn down and send back to the suppliers. Keystone will use these off-grade potatoes to provide a new potato source for other potato-producing facilities. Keystone will take these off-grade potatoes, mash them down and create potato flakes. These flakes will, in turn, be sent out to other facilities that produce potato products; and the overall potato waste will be cut drastically.
How Rural Development Helped:
A $4,995,000 Business & Industry Guaranteed Loan was provided for the development of an 86-acre site, construction of a new potato processing facility, purchase of new machinery and equipment, and start-up costs and working capital. $2,855,000 was put in the project by the borrower and private investors. They have also obtained a $450,000 USDA Rural Development Value-Added grant and $2,855,000 from Pennsylvania State Agencies.
The Results:
This new facility will not only cut costs for potato suppliers but will also create a new source for potato products facilities. 40 jobs were created as a result of this program.
Only one other plant comparable to this facility may be found on the East coast, and that plant is located in Canada which makes this Pennsylvania Corporation a prime choice for many East coast U. S. potato industries.
Rural Business Enterprise Grant
Outline of Need:
The Business Incubator officially opened in August 2004. It is housed in an abandoned 2 story brick elementary school building that served Huntingdon for over 90 years. The Incubator building has been renovated to feature the most modern business development technology, including a Voice-over IP phone system (which allows for flexibility of use in the tenant space), proximity card security system (which allows staff to provide access to tenants only on their designated days in the facility) and state-of-the-art conference rooms and office space (with use of SmartBoards and tablet PCs). Tenant occupancy began in September 1, 2004.
JCEL has established partnerships with 38 individual service providers in Huntingdon County (including attorneys, accountants, and insurance carriers), who provide their services to Incubator tenants, as well as 24 entrepreneur mentors. Partnerships with the Life Science Greenhouse of Central PA, the Saint Francis Small Business Development Center and SCORE have also been developed. Workshops for student entrepreneurs are regularly conducted by JCEL’s Executive and Deputy Directors. The JCEL Board includes four Sponsoring Directors, each a successful entrepreneur, who bring a great deal of expertise to the program, and who also contribute $10,000 per year to support the operations of the Sill Incubator
JCEL has launched successful marketing campaigns for its target audiences of prospective and current Juniata students, faculty and staff members at the college, as well as community residents. Radio, television, open houses and print ads have directed interested parties to the website www.jcel.biz .
The first round of presentations for Student Seed Capital occurred in February 2004. JCEL had 45 direct student inquiries into the Seed Capital program – 3 began self-funded business (working with JCEL), and 21 submitted draft business plans for funding. Over $450,000 is currently available in this Student Seed Capital fund.
In addition to these student entrepreneurs, JCEL worked with 25 community-based business visionaries to develop business plans and help them begin operations. Highlights include: Juniata Valley Watercraft, created via the combination of Juniata alumni-donated intellectual property and the business experience of a former County Commissioner; SimPlus EXP, which is developing a working relationship with an area technology institute in creating an interactive software package; work with a Juniata Biology professor in commercializing current findings related to ongoing biotech research.
How Rural Development Helped:
Through a third program, Economic Development, JCEL strengthened its relationship with USDA Rural Development, the Commonwealth of Pennsylvania, Huntingdon County government and the local business community. JCEL provides managerial services for Huntingdon County Business and Industry, and administers the State-designated Enterprise Zone for the county. JCEL created a Memorandum of Understanding for all organization involved in economic development, and has taken the lead in creating a state of Pennsylvania Keystone Innovation Zone Partnership, which will integrate the technical and academic resources of the college with the economic development needs of the community.
USDA RD’s funding has stimulated remarkable developments for the Juniata College Center for Entrepreneurial Leadership (JCEL). During the subsequent twelve months a staff of two grew to a team of four, key community partnerships were formed, the undergraduate seed capital program became a real part of the Juniata experience, and the physical location of the JCEL offices migrated from the ‘back wing of the former science center’ to the state-of-the art Sill Business Incubator. This has all laid the groundwork for an exciting and productive future for the Juniata College Center for Entrepreneurial Leadership (JCEL), and an interesting partnership with USDA Rural Development.
The Results:
City of Bradford- Office of Economic & Community Development (OECD) located in McKean County, PA received a $200,000 RBEG construction grant in April 2003 to restore and renovate the old City Hall in downtown Bradford. This restoration has been a part of an ongoing downtown revitalization program for the city to create and enhance the economic growth of the community. The renovated City Hall Building will provide multi tenant lease space for small and emerging business. OECD proposes that there will be approximately 25-30 new jobs created as a result of the new lease space in the community.
Lock Haven University (LHU) located in Lock Haven; Clinton County, PA received a $99,000 RBEG technical assistance grant in May 2004 to provide support and continued technical assistance for the Small Business Development Center (SBDC). The SBDC provides technical and training assistance to individuals to promote improved management, production and growth in their small businesses. The training assists clients in creating successful productive businesses within their communities. Since the SBDC was established in 1996, they have assisted over 1000 clients become successful businesses. The SBDC estimates that they held to create or retain about 60 jobs each year within the community. Congressional representatives: John Peterson 5th district Senators Specter and Santorum.
Pennsylvania State University (PSU) located in State College, Centre County, PA recently received a $25,000 RBEG Technical Assistance Grant in June 2004 to support and continue the technical assistance staff for the Mifflin County Small Business Development Center (SBDC). The SBDC provides technical and training assistance to individuals to promote improved management, production and growth in their small businesses. These include business consulting, seminars and other activities that will assist clients in becoming successful businesses within their communities. Since 2000 the SBDC in Mifflin County has helped to create 21 new jobs and retain 6 jobs. With continued funding they have seen an increase in requested services and they expect to have at least 29 jobs retained in the area as well as additional new jobs created.
Section 9006 Energy Grant
Outline of Need:
Custom Fuels, Inc. is working to create a model agriculture resource recovery energy business that refines soybean oil into diesel fuel additive/extender.
How Rural Development Helped:
$177,975 was obligated 9/30/04
Outline of Need:
Turbotville Development Corp. is working to install a geothermal direct use open loop system to capture heat from water, concentrate it and sell the energy captured to businesses and residences within the project (Breeze Point Landing, Warren, PA) area.
How Rural Development Helped:
$249,435 was obligated 9/30/04
Outline of Need:
The Four Winds Farm is working on recoverable energy through a manure anaerobic digester: Design and install a plug flow digester. The system will utilize the dairy farm's manure to increase farm revenue by optimizing the recovery and use of energy. Treated digester effluent will provide improved manure management options.
How Rural Development Helped:
$196,978 was obligated 9/30/04
Outline of Need:
Frederick L. England dba Penn-England Farm is working on recoverable energy through a manure anaerobic digester: Design and install a plug flow digester. The system will utilize the dairy farm's manure to increase farm revenue by optimizing the recovery and use of energy. Treated digester effluent will provide improved manure management options.
How Rural Development Helped:
$203,725 was obligated 9/30/04
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