News Release

USDA TO BACK $33 MILLION IN LOANS FOR RURAL BUSINESSES

WASHINGTON, August 10, 1998 -- Agriculture Secretary Dan Glickman today announced that USDA Rural Development will provide more than $33.7 million in loan guarantees to rural businesses in 13 states. The financial assistance is being provided as part of the U.S. Department of Agriculture effort to bolster economic development in rural communities.

"These loans will help preserve or create jobs needed to maintain the economic vitality of rural communities," Secretary Glickman said. "The Clinton Administration is committed to improving the economy of rural America by using the resources of USDA to promote rural business development."

Projects being backed by USDA range from a $1.2 million loan guarantee to purchase and expand a livestock feed business in Maryland to a $2 million loan guarantee to expand an extended-care nursing facility in Nevada.

The financial assistance is being provided under USDA's Business & Industry Guaranteed Loan program, which provides loan guarantees to lenders who provide loans to rural businesses. USDA makes the loan more attractive to the lender by guaranteeing up to 80 percent of a loan of $5 million or less. It can guarantee smaller percentages for larger loans.

"These funds enable the Federal government to work as a partner in creating economic opportunity for rural Americans," said Jill Long Thompson, USDA under secretary for rural development. "Last year, USDA Rural Development assisted the start-up or expansion of almost 1,200 rural businesses and cooperatives, which created or saved roughly 53,000 jobs."

For more information about USDA's Business & Industry Guaranteed Loan program, call (202) 720-0813.

USDA is making loan guarantees to the following:

• Alaska -- $2 million to a Fairbanks business to expand a vacation facility.
• Arizona -- $2.22 million to construct a motel in Gold Canyon, Ariz.
• California -- $2.88 million to construct a new hotel and restaurant in Lathrop, Calif.
• Idaho -- $2.45 million to purchase property and construct a 61-bed assisted living facility in Blackfoot, Idaho.
• Kansas -- $740,000 to purchase two grocery stores in Hays, Kan.
• Kentucky -- $749,000 to provide working capital to a company that makes carboard boxes in Somerset, Ky.
• Louisiana -- $1.1 million to purchase machinery and equipment and provide working capital for a business in Centerville, La.
• Maryland -- $225,000 to acquire an existing restaurant in Cambridge, Md., and purchase operating equipment.
• Maryland -- $1.25 million to purchase and expand a business that produces livestock feed in Princess Anne, Md.
• Maryland -- $125,000 to a Salisbury, Md. Business to purchase equipment for an indoor family entertainment center.
• Montana -- $1.5 million to a Helena, Mont., business to expand a convenience store.
• Montana -- $200,000 to White Sulpher Springs, Mont., business owners to purchase equipment for an existing construction company.
• Montana -- $405,000 to a lodging business in Ennis, Mont., for working capital.
• Nevada -- $2 million to expand an existing extended-care facility Yerington, Nev.
• Nevada -- $20,000 to a West Wendover, Nev., business for working capital needed to continue operations of a mobile home park.
• Ohio -- $500,000 to a business in New Lexington, Ohio, to construct a gas station and convenience store.
• Ohio -- $3.55 million to a farmers cooperative in Findlay, Ohio, to purchase a grain terminal.
• Pennsylvania -- $8 million to a business in East Stroudsburg, Pa., to construct a septage/sludge processing plant.
• Pennsylvania -- $3.2 million to a business in Mifflintown, Pa., to purchase fuel, combustion, electrical and gas turbine systems.
• Wyoming -- $625,000 to an Evanston, Wyo., business owners to purchase and expand a convenience store and gas station.
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Media Contact: Roger Salazar, (202) 720-4623
roger.salazar@usda.gov
Public Contact: Dan Campbell, (202) 720-6483
dcampbel@rurdev.usda.gov

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