USDA: Agriculture Secretary Vilsack announces $4 million in Recovery Act funding for business development projects in rural areas

CONTACT: USDA Office of Communication

Phone: (202) 720-4623

Projects Include Business Expansion, Education and Training, Community Development and Technical Assistance

WASHINGTON — Agriculture Secretary Tom Vilsack today announced the selection of 44 recipients for more than $4 million in grants to create jobs by starting or expanding businesses in rural communities. Through funding provided by the American Recovery and Reinvestment Act (ARRA) , businesses will be able to access critical capital that will help with start-up and working capital loans, building and plant renovations, transportation improvements, project planning and other business needs.

“These Recovery Act grants are part of the Obama Administration’s ongoing effort to promote job development by ensuring that strategic investments are made in rural America,” said Vilsack. “Small businesses drive community revitalization by providing products and services to local residents. This funding will help spur important economic development and strengthen communities around the country.”

For example, in Vernon County, Wis., the city of Viroqua has been selected to receive a $90,000 grant to establish a revolving loan fund to assist small, emerging businesses in the City of Viroqua. The city plans to loan funds that will result in the creation of at least 16 new jobs.

“These funds will assist rural communities build stronger local economies, by spurring business growth and development and by saving or creating needed jobs,” said Stan Gruszynski, Wisconsin State Director. “USDA Rural Development stands ready to work with local community leaders to support economic growth and improve the quality of life for rural Wisconsin residents.”

In addition to the grants that USDA Rural Development is providing for the 44 projects announced today, fund recipients have raised an additional $6.9 million from other sources to dedicate to the projects.

The funding announced today is being provided by ARRA through USDA Rural Development’s Rural Business Enterprise Grant Program (RBEG), which helps finance new and existing businesses as well as employment-related adult education programs. RBEG funds can be used for start-up and working capital loans, building and plant renovations, transportation improvements, project planning and other business needs. Additional information on the RBEG program may be found at http://www.rurdev.usda.gov/rbs/busp/rbeg.htm.

President Obama signed The American Recovery and Reinvestment Act of 2009 into law on Feb. 17, 2009. It is designed to jumpstart the nation’s economy, create or save millions of jobs and put a down payment on addressing long-neglected challenges so our country can thrive in the 21st century. The Act includes measures to modernize our nation’s infrastructure, enhance energy independence, expand educational opportunities, preserve and improve affordable health care, provide tax relief, and protect those in greatest need.

More information about USDA’s Recovery Act efforts is available at http://www.usda.gov/recovery. More information about the Federal government’s efforts on the Recovery Act is available at http://www.recovery.gov.

USDA Rural Development’s mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. This past year, USDA Rural Development returned nearly $700 million to rural Wisconsin communities. The funding supports a wide variety of loan, guaranteed loan and grant programs to rural residents in the areas of housing, community facilities, business development, infrastructure, and other development needs. Further information on USDA Rural Development programs is available by visiting USDA’s website at http://www.rurdev.usda.gov/wi. USDA Rural Development is an equal opportunity provider, employer and lender.