Agriculture Secretary Tom Vilsack announced the selection of 43 organizations in 27 states for grants and loans to help create jobs and boost economic development activity in rural areas.
"Many rural businesses and organizations are succeeding but with access to additional resources can create more jobs, promote growth and create an environment where more products can be made in rural America," Vilsack said. "The awards we are announcing will not only provide funding, but they also will provide the critical training and technical assistance rural cooperatives and non-profit groups need to enhance the work they are doing to strengthen America’s Main Street businesses."
The funding is being provided through the U.S. Department of Agriculture’s Rural Cooperative Development Grant (RCDG) program and the Intermediary Relending Program. Vilsack announced $5.8 million in RCDG awards to 32 recipients, and just over $7 million in loans to 11 recipients under USDA’s Intermediary Relending Program. Funding is contingent upon the recipient meeting the terms of the loan or grant agreement.
Rural Cooperative Development Grants are being awarded to non-profit groups and higher education institutions. The recipients will use the funds to operate centers to develop or expand rural businesses, especially cooperatives and mutually-owned businesses. The funding can be used to conduct feasibility studies, create and implement business plans, offer technical assistance, establish low-interest loans, and help rural businesses develop new markets for their products and services.
In Texas, the University of Texas-Pan American, in Edinburg, will receive a $199,992 grant to improve awareness of cooperatives and services available for them, to provide training to new and existing cooperatives, and to offer technical assistance to cooperatives and mutually-owned businesses in rural Texas.
USDA’s Intermediary Relending Program helps capitalize loan funds to alleviate poverty and increase economic activity and create jobs in rural communities. Loans are provided to local organizations that establish revolving loan funds.
In Texas, the San Benito Economic Development Cooperation, in San Benito, will receive a $400,000 loan to supplement an existing revolving loan fund that assists small and emerging businesses.
“USDA Rural Development strives to improve the overall quality of rural communities,” said Paco Valentin, USDA Rural Development Texas State Director. “These funding announcements will assist with the development of rural businesses and cooperatives, which provide needed goods and services to rural Texas residents.”
President Obama’s historic investments in rural America have made our rural communities stronger. Under his leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America’s economy, small towns and rural communities.
Source:usda.gov