With support from a USDA Business and Industry Guaranteed Loan, the Cellars at Jasper Hill in rural Greensboro, Vermont was able to expand its facility, grow its business and reach new markets.
Last month, Secretary Vilsack announced a historic level of funding available for local and regional food: $78 million, including $48 million through USDA’s Business and Industry Loan Guarantee Program and $30 million through the newly-expanded Farmers Market and Local Food Promotion Program. The 2014 Farm Bill gave USDA these and other tools and resources, expanding our ability to connect rural and urban communities, increase access to healthy foods, and support rural economies through local food systems.
What does this mean for rural economies? Consider Cellars of Jasper Hill in Greensboro, Vermont. The Kehler brothers took their passion for dairy and founded a cheese making operation 10 years ago. Partnering with Vermont’s Community National Bank, USDA’s Business and Industry Loan Guarantee Program helped the company construct a 22,000-square-foot facility and expand its on-farm value-added cheese production. The project helped save 20 existing jobs and created 14 new ones in a town with fewer than 1,000 residents. Read more »
A USDA Section 502 Home Loan Guarantee helped the Goetz family secure a bank loan on their rural Kansas home.
In rural areas, financing a home can be difficult. There often aren’t as many lenders serving rural locations as there are in more densely populated parts of the country. Also, some rural lenders may require a larger down payment or a higher interest rate to secure a loan. Fortunately, USDA Rural Development partners with more than 3,000 housing lenders to make sure low- and moderate-income rural families have a chance to enter the housing market.
Through the Section 502 Guaranteed Housing Loan Program, USDA Rural Development backs loans made by approved lenders for the purchase, refinance, renovation, or repair of an owner-occupied residence. The USDA guarantee allows lenders to provide 100-percent financing on a safe, low-interest, 30-year mortgage. Read more »
Tony Hernandez (left), Administrator for USDA Housing Programs, and Georgia Rural Development State Director Quinton Robinson congratulate Telisha Mack on her new home in recognition of National Homeownership Month.
In 2011, Telisha Mack was ready to take the leap into homeownership. She put mortgage applications at three different banks, but was not approved because she didn’t have a huge down payment or a co-signer. She lost her chance to purchase two different homes she liked.
As a single mother with three children while working a full-time job, Telisha managed to overcome a number of hurdles to obtain an Associate’s Degree in Accounting, a Bachelor’s Degree in Management, and a Master’s Degree in Human Resources. She maintained good credit and budgeted wisely. She knew she could overcome the hurdle of entering homeownership, but wasn’t sure exactly how or when. Then, she heard from a friend how USDA Rural Development helps families break into the housing market. Read more »
The Riggio family was able to purchase their home in Newville, Pennsylvania, with a loan from USDA Rural Development’s Self-Help Housing Loan Program.
As we celebrate National Homeownership Month this June, I am reminded how USDA delivers positive outcomes ‘Every Day, Every Way’ through the comprehensive programs and services that touch the lives of every American. While many people think of USDA in terms of food, farms and forestry, nearly 3.4 million families over the past 65 years have found the affordable financing they needed to become homeowners through USDA Rural Development.
In 2013 alone, more than 170,000 rural residents became homeowners with the help of Rural Development’s direct loans, guaranteed loans, grants and technical assistance. In both people and dollars, 2013 was the most successful year on record in the history of USDA’s single-family housing programs. Read more »
Leon Kauzlarich (left) and his son, David, are both U.S. Army veterans. With critical home repairs in place, including a handicap-accessible ramp, Leon plans to get out this Memorial Day to recognize the contributions of other military veterans.
As we celebrate Memorial Day this weekend, those of us at USDA Rural Development would like to take a moment to remember the fallen. We also thank the veterans who served alongside them and who are helping keep their memories alive today.
Leon Kauzlarich from rural Appanoose County, Iowa, is one such veteran who will be getting out this Memorial Day to do just that. For decades, he has spent Memorial Day visiting rural cemeteries to place American flags on the graves of fallen soldiers. As a senior with mobility issues, however, he missed three recent Memorial Day observances, because he was unable to navigate the front steps and was completely homebound. Read more »
Zena Forest Products' owner and Value Added Producer Grant recipient, Ben Deumling, explains the uses and values of different sizes of sustainably harvested Oregon white oak to USDA Rural Development Administrator for Rural Business Service Lillian Salerno at the company site near Salem, OR.
In his Small Business Week Proclamation earlier this week, President Obama said, “Small businesses represent an idea at the heart of our Nation’s promise — that with ingenuity and hard work, anyone can build a better life.”
Having started my own manufacturing company in rural Texas many years ago, I believe small business folks are American heroes. What it takes to get a business going and the immense responsibility of employing others and developing markets is very hard work especially in rural areas. The work of an entrepreneur is also rewarding and those relationships with employees, customers and the community are lifelong. For rural entrepreneurs, their companies are part of the fabric of the community.
One of the main obstacles getting a business off the ground is locating the capital to invest in communities. Seeking a business loan or receiving an equity investment is such a critical path for startups and to keep entrepreneurship vibrant in rural America because we know the type of jobs created by small business are the ladders of opportunity. Read more »