United States Department of Agriculture (USDA) Rural Development Alabama Acting State Director Allen Bowen today announced that USDA has made significant investments in Alabama to support rural …
United States Department of Agriculture (USDA) Rural Development Alabama Acting State Director Allen Bowen today announced that USDA has made significant investments in Alabama to support rural business working capital and other business capital needs in fiscal year 2021.
The Department has invested $74,690,950 in loan guarantees to United Bank of Atmore, Ala., and ServisFirst Bank of Birmingham, Ala. to help 6 rural businesses across Alabama. These investments – made through the Business and Industry Loan Guarantee Program and the Business and Industry CARES Act Program – are expected to create or save more than 470 jobs for people across the state.
“Many rural businesses had an increased need for working capital this year,” Bowen said. “Through programs like the Business and Industry Loan Guarantee Program and the Business and Industry CARES Act Program, USDA can continue to help rural businesses to stay open, save existing jobs, create new opportunities, and help our rural communities to build back better and stronger than ever before.”
USDA has invested $42,940,950 in Alabama through the Business and Industry (B&I) Loan Guarantee Program since the start of the current fiscal year. This assistance has helped businesses create or save more than 184 jobs in rural Alabama.
USDA also invested $31,750,000 in Alabama’s rural businesses through the Business and Industry CARES Act Program, which was established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This assistance has helped rural businesses create or save more than 286 jobs in across the state.
Investments under the B&I program are 36 percent higher nationwide than they were this time last year. Applications have increased by 44 percent nationwide. These increases are due in part to a series of program improvements USDA adopted under the new OneRD Guarantee Loan Initiative.
This initiative increased the USDA loan guarantee to 80 percent for investments greater than $5 million. The previous guarantee percentages were 70 percent for loans less than $10 million and 60 percent for loans greater than $10 million. This improvement has made the program more attractive to capital-intensive businesses such as manufacturing companies.
Under the Biden-Harris Administration, Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, tribal and high-poverty areas. For more information, visit www.rd.usda.gov/al. If you’d like to subscribe to USDA Rural Development updates, visit our GovDelivery subscriber page.
USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.