Rural Development Provides Grants And Loan Guarantees

By GENE O. MORRIS
Business Correspondent

05.22.09 - McCOOK - Businesses throughout the Tri-State Region of Nebraska, Kansas and Colorado are eligible to apply for loan guarantees of up to 80 percent through USDA Rural Development.

Details about the program were among the highlights Friday, May 22, when the regional Entrepreneur Network met at First Central Bank in McCook. Lory A. Cappel, area technician for Rural Development, also told about energy efficiency grants available through USDA.

The primary purpose of the programs is to create and maintain employment and improve the economic and environmental climate in rural communities.

To qualify for the 80 percent loan guarantee, new businesses must have equity of 20 percent, while existing businesses must have 10 percent equity.

USDA guaranteed loans can be up to seven years for working capital, 15 years for the purchase of machinery and
equipment and 30 years for real estate.

For more information, interested businesses are encouraged to contact Cappel by phone, 308-534-2360, or by e-mail: lory.cappel@ne.usda.gov

The USDA energy grants can cover up to 25 percent of the cost for projects. To qualify, businesses must own their own building. The grants can be combined with a guaranteed loan program, but the 25 percent grant portion does not have tube repaid. "The energy efficiency grant is used a lot by a producers when diesel irrigation systems are switched to electric," Cappel said. The program is also available to retail businesses and industries in rural areas.

The meeting also featured a presentation by Susan Harris Broomfield, who told the group there is still a few hours left to apply for the 2009 Hormel Business Competition. To be eligible for the $25,000 prize, entrants must submit applications by Wednesday, May 27. The award will be announced June 12.

For information, prospective entrants may go to the Hormel Competition website: www.investmccook.com

The winner of the first year competition, Cody Dame and Tanner Lytle of Game On, were at the Entrepreneur meeting and spoke highly of the help provided their business by the Hormel Family Foundation.

Since starting in McCook in 2007, the program has been expanded to other Nebraska cities. Earlier this year, a goat dairy was the winner of the competition in the Scottsbluff area.

The Entrepreneur Network meets on the fourth Friday of each month at First Central Bank-McCook. The next meeting, June 26, will feature a presentation by Jerry Gohl, president of Golight, Inc. He will discuss product development.