USDA Loans Help Rural Businesses

It is in the news that American Agriculture Secretary Tom Vilsack has announced that $56.2 million in loan guarantees to assist 12 rural businesses through funding by the American Recovery and Reinvestment Act, including TEAM Industries in Bagley.

The agriculture secretary also said “The Recovery Act funds announced today will help businesses get access to the capital they need to expand their businesses and bring stability to America’s small cities and towns,” Vilsack said. “President Obama and USDA are committed to building strong rural communities by helping businesses grow so we can renew and revitalize our country.”

In Bagley, the U.S. Department of Agriculture is guaranteeing a $7 million loan to TEAM Industries for working capital. TEAM Industries, established in 1986, is a manufacturing and design company specializing in drive train products.

Recently, the company has not been getting orders for some times. Its reaction to reduced sales was swift. TEAM diversified its end product and significantly increased its customer base, resulting in more than 30 new customers, new patented products and increased sales.

The funding is being made available through USDA Rural Development’s Business and Industry Guaranteed Loan Program. Eligible applicants include private businesses, cooperative organizations, corporations, partnerships, nonprofit groups, federally recognized Indian tribes, public bodies and individuals. The funds will be targeted to creating and retaining quality jobs and serving difficult-to-reach populations and areas hardest hit by the current economic downturn.

The 12 projects will leverage $5.6 million in private sector investments in addition to the USDA Rural Development assistance.