News Release

Media Contact: Tim McNeilly, (202) 690-0498
Beverly Helton, (334) 279-3441

$8.5 MILLION LOAN GUARANTEE TO ASSIST ALABAMA CLOTHING MANUFACTURER

USDA Rural Development Approves Loan Guarantee for Clothier of Military and Fire Fighting Uniforms

     WASHINGTON, October 4, 2001--USDA Rural Development officials today announced the approval of a conditional commitment for an $8.5 million loan guarantee to First Bank, who is seeking to assist Terry Manufacturing Company, Inc. in the financing of working capital and purchase of machinery and equipment.

     "This loan guarantee will help expand job opportunities in this rural community of Alabama," said Michael E. Neruda, Acting Deputy Under Secretary for USDA Rural Development.

     Terry Manufacturing Company produces battle dress uniform coats for the U.S. Department of Defense, fire retardant coats for the U.S. Forest Service, as well as a variety of other uniforms and licensed apparel. The Roanoke company employs 300 people.

     The Business and Industry (B&I) Guaranteed Loan Program helps create jobs and stimulates rural economies by providing financial backing for rural businesses. This program provides guarantees up to 90 percent of a loan made by a commercial lender. Loan proceeds may be used for working capital, machinery and equipment, buildings and real estate, and certain types of debt refinancing. The program is administered by Rural Business-Cooperative Service (RBS), an agency within USDA Rural Development.

     USDA Rural Development serves as the lead federal entity for rural development needs, and administers program assistance through three agencies: Rural Housing Service, Rural Business-Cooperative Service, and Rural Utilities Service. Further information on USDA Rural Development can be obtained by contacting any USDA Service Center or by visiting USDA's web site at http://www.rurdev.usda.gov.

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