Loans awarded by USDA hope to create jobs and improve rural economics

Five non-profit organizations representing five different states will receive funding

By Diego Flammini, Farms.com

In an effort to help improve rural business areas, businesses in low-income areas and rural economic development as a whole, the United States Department of Agriculture’s (USDA) Rural Development is providing more than $2 million to non-profit groups to help it happen.

"Helping rural businesses get access to investment capital is one of the most effective ways to help rural economies grow," Agriculture Under Secretary Lisa Mensah said during a visit to Winona, Mississippi. "These loans will help businesses create jobs, expand their operations, invest in materials and equipment, and promote their success and growth.

The funds are being donated through the Intermediary Relending Program (IRP) in which the USDA provides loans to local companies to “create revolving loan funds for businesses.”

There are five different groups, each representing a different state that are set to receive USDA funding. They are:

Mississippi’s North Central Planning and Development District
With programs including Area Agency on Aging, Medicaid Waiver and Loan Division, they are receiving a loan of $600,000.

Iowa’s Newton Development Corporation
Providing education, communication, business and transportation services, the Iowa organization will receive $200,000.

New Hampshire’s Coastal Economic Development Corporation
With their mandate to try and create and retain jobs in their community, they are getting a loan of $500,000.

Missouri’s Agricultural and Small Business Development Authority
Providing grants including the “Farm to School” grant and the Specialty Crop Block Grant, Missouri’s share will be $500,000.

South Dakota’s Four Bands Community Fund
Business success coaching, talking circles and matched savings programs are only some of the services offered by the South Dakota organization. They’ll receive $750,000.