Posts tagged: B&I Loan
Written by Vicki Schurman, USDA Public Information Officer
Much of the natural gas consumed in the United States comes from North America. But when you think of natural gas, you don’t usually think of sand. Preferred Sands of Nebraska provides the North American natural gas industry with high quality specialty (frac) sand. It’s used by industry customers in every production basin in the United States and Canada. The sand is injected into a well as part of a process to increase gas flow. The special sand produced in Nebraska holds open fractures in gas-bearing deposits during production.
Recently, USDA Rural Development Deputy Under Secretary Cheryl L. Cook toured the Preferred Sands facility in Genoa, Neb.
USDA Rural Development’s Business and Industry Guaranteed Loan provided American Recovery and Reinvestment Act support that will help the company preserve 50 jobs at Preferred Sands. An additional 50 new jobs for local residents are expected to be created in the next two years.
“USDA Rural Development is in the business of helping businesses like Preferred Sands of Genoa LLC support job creation, and strengthen the local economy,” Cook said. “The guaranteed loan the company is receiving will provide a much needed boost to the local economy by helping to preserve existing jobs and creating even more employment opportunities in the future as the company grows.”
The company provides good jobs for the area. Wages average over $34,000 annually.
Preferred Sands received a $22 million loan from Siemens Financial Services, Inc., backed by an USDA Rural Development guarantee. Leveraged with the loan are $10.1 million from Preferred Sands and $7 million from a GE equipment loan. The funds were used to refinance real estate and equipment at the facility.
USDA Rural Development Deputy Under Secretary Cheryl Cook (fourth from left), Nebraska RD staff, Congressional staff, State Senator Annette Dubas, Lenders, and Borrowers Celebrate the Sustainability of a Rural Business, Preferred Sands of Genoa LLC.
USDA Rural Development and the Farm Services Agency sponsored the Rural New York Economic Development Forum earlier this month in Virgil, N.Y. we had an audience of about 60 business, government and economic development leaders.
We chose the Hope Lake Lodge as the location for the meeting because it is a great example of what USDA Rural Development can achieve. The five-story hotel– part of the Greek Peak Ski Resort – was financed in part by a $10 million Business and Industry (B&I) loan guarantee. Several attendees were surprised to discover Rural Development could finance such a facility and a few have already approached us to discuss specific projects the B&I program may be able to support.
Rep. Michael Arcuri was attending a high-speed rail press conference 80 miles away in Utica, N.Y. but opened the Forum with an address via telephone. Staff members from the offices of Sen. Kirsten Gillibrand, Rep. Maurice Hinchey and Rep. Dan Maffei were in attendance. New York State Assemblyman Bill Magee, Chair of the Assembly’s Agriculture Committee, and staffers from the New York State Legislative Commission on Rural Resources were also present.
The leading barrier to job creation and economic development in rural New York was easily identified by the group. Almost everyone in attendance, whether in government or the private sector, felt the lack of access to capital combined with lenders’ risk aversion created the largest problem facing our state’s rural economy. Several other issues also were identified and included the lack of broadband and cellular telephone infrastructure – parts of rural New York have a paucity of cell towers. The need for streamlined, simplified application processes to federal and state grant and loan programs also was identified as a major issue, as was a general lack of information about Rural Development programs. These issues, as well as several others, are discussed in the report we compiled for Secretary Vilscack.
All in all, I was happy with our first-ever job creation and economic development forum. We had great attendance and received media coverage. The Forum has also provided us ideas for future events, such as the creation of a “co-funding” business team that would include our business program, the state’s primary economic development organization and other key stakeholders. Another idea we’ll examine is conducting smaller, industry-specific focus group discussions in various regions of the state.
More than 60 business, industry, economic development and government
leaders attended the USDA-sponsored Rural New York Economic Development
Forum on job creation and economic development opportunities on Feb. 5.
The event was held at Hope Lake Lodge in Virgil, N.Y., which was
financed in part by a $10 million B&I loan guarantee.
By Jill Harvey, New York State Director, USDA Rural Development
USDA Administrator Says to New Mexico, “Your Business is Our Business and Our Business is Your Business.”By
New Mexico State Director Terry Brunner welcomed USDA Rural Development Administrator of Business and Cooperative Programs Judy Canales to Albuquerque earlier this month to kick off a two day training session for Rural Development staff and lenders from across the state.
After being introduced to our staff by the State Director, Administrator Canales said, “This is a fantastic time for New Mexico to provide more business because of the funds that have been made available through the Recovery Act.” To make her point Canales, added, “I had a meeting on Tuesday in Texas with 60 lenders and some of them told me they are very interested in doing business here in New Mexico.”
Canales told the RD staff she is traveling the nation meeting with lenders and other RD staff with a very simple message. “Your business is our business. And, our business is your business.” That morning Administrator Canales and State Director Brunner held a meeting with 22 local lenders and venture capital firms to discuss the advantages of using the B & I Guaranteed Loan Program.
Later in the day 22 staff members assigned to business programs from across New Mexico attended an intensive business workshop taught by Jeff Jobe an RD national business field advisor from Iowa. Jobe gave the staff a large binder full of information on the B&I Guaranteed Loan program and the REAP Program which promotes energy efficient projects in rural America.
The staff attending the workshop asked Jobe questions about the B&I Guaranteed loan program from initial inquiries to filling out the various forms and paperwork. Special thanks go out to New Mexico USDA Rural Development Business Programs staff who helped organize the training. For more information about B&I Loan Guarantees click here.
New Mexico State Director Terry Brunner welcomes Administrator Judith Canales to New Mexico to kick-off staff and lender training. During his welcome Mr. Brunner presented Ms. Canales with a basket full of New Mexico grown agriculture products.
New Mexico State Director Terry Brunner greets staff during the RBS programs training session.
Submitted by Ernie Watson, USDA Rural Development-New Mexico