USDA Acting Administrator of Rural Development’s Rural Business-Cooperative Service John Padalino this week met with local leaders and business owners in the Midwest to highlight rural small business accomplishments and observe “National Small Business Week”.
“We know that to build a strong foundation for our country, we must continue to invest in rural communities and small businesses that create new economic opportunities for those who call rural America home,” said Padalino. “We’ve seen continued growth in rural business development and the Obama Administration will continue working to strengthen local economies throughout the country.”
Padalino met this week with business leaders in Iowa and South Dakota and highlighted ways RBS business and cooperative programs help improve rural economic conditions by providing guaranteed loans and development grants for projects that help create and save jobs.
Nationally, from 2009 through 2011, RBS provided 12,214 guaranteed loans, direct loans and grants that assisted more than 50,000 businesses and helped create or save more than 266,000 jobs.
For example, Morris Manufacturing and Sales Corporation, a family-owned automotive parts manufacturer, had to lay off 100 of its 135 employees when two major automakers closed down production and reorganized. With the assistance from USDA Rural Development, Morris Manufacturing located in Brazil, Ind. secured four B&I loan guarantees totaling $10.2 million, which it used to restructure debt and purchase new equipment. As a direct result of these loans, the company rehired its laid off workers, built a new production facility, expanded its product line, and hired over 60 new employees.
The Montana Wagyu Cattle Company is a family-owned and operated business that raises cattle and provides USDA Grade-A beef and specialty beef products to restaurants, stores, and consumers throughout the region. In 2009, the company used their $49,900 Value-Added Producer Grant (VAPG) to grow and expand their business by selling products over the internet.
Today, the company sells and ships custom-ordered cuts of beef (steaks, roasts, and specialty cuts) to consumers and businesses all over the United States.