USDA is on track to provide a record level of support for rural working capital and other business capital needs in fiscal 2021.
The Department has invested $ 1.2 billion in loan guarantees to help rural businesses in 41 states, Guam and the Virgin Islands. These investments – made through the Business and Industry Loan Guarantee Program and the CARES Program for Business and Industry – should create or safeguard more than 12,000 jobs for people in rural areas.
“Under the leadership of President Biden, Vice President Harris and Secretary of Agriculture Vilsack, USDA is expanding access to capital to prioritize rural economic development,” said Maxson. “As we continue to respond to the COVID-19 pandemic and restore the economy, the USDA remains committed to helping rural businesses create employment opportunities so that rural Americans can build back better and stronger than never.”
USDA has invested $ 811 million in the Business and Industry Loan Guarantee Program (B&I) since the start of the current fiscal year. This aid has enabled businesses to create or save more than 6,000 jobs in rural areas.
Investments in the B&I program are 36% higher than they were at the same time last year. Requests increased by 44%. These increases are due in part to a series of program enhancements adopted by the USDA as part of the new OneRD Guarantee Loan initiative.
This initiative increased the USDA loan guarantee to 80% for investments over $ 5 million. The previous guarantee percentages were 70% for loans under $ 10 million and 60% for loans over $ 10 million. This improvement made the program more attractive to capital intensive businesses such as manufacturing companies.
USDA has also invested $ 380 million in rural businesses through the CARES Program for Business and Industry, which was created under the CARES Act (Coronavirus Aid, Relief, and Economic Security). This aid has helped rural businesses create or save more than 6,000 jobs in rural areas.
These investments USDA announces today are helping rural businesses and workers in Alaska, Alabama, Arkansas, Arizona, California, Colorado, Delaware, Florida, Hawaii, Georgia, Iowa, Idaho, Illinois, Indiana, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Missouri, Mississippi, North Carolina, North Dakota, Nebraska, New Jersey, New York, Nevada, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Vermont, Virginia, Washington, Wisconsin, West Virginia, Wyoming, Guam and the Virgin Islands.