Tuesday, Mar 15 2011 5:41PM
Funding from the USDA will help an Idaho organization offer loans to local microentrepreneurs.
An Idaho development organization has been awarded funding by the U.S. Department of Agriculture (USDA) that will help it offer small loans to rural microentrepreneurs.
The Region IV Development Association of Twin Falls, Idaho, was one of eight organizations in seven states selected for funding under the USDA's Rural Development's Rural Microentrepreneur Assistance Program. The initiative grants money to an intermediary who then re-lends it to local entrepreneurs in rural communities.
"This USDA funding gives us a new tool to assist new and existing businesses grow and diversify the economy of South-central Idaho. We will make loans of up to $50,000 at below bank interest rates. This new funding brings Region IV Development/Business Lending Solutions to a total of five direct lending products — each a bit different, better enabling us to fill the financing needs of our entrepreneurs," said Joe Herring, the Region IV executive director and RCAC board member.
The agency set aside a $300,00 loan and $75,000 grant for the Region IV Development Association, which will be used to provide technical assistance and training to rural business owners in locations with high unemployment. The funding is expected to help 15 businesses create jobs, encouraging
economic community development in struggling areas.
"Sometimes, a small loan is all an entrepreneur needs to start a business or produce a product. Through this program, USDA is working with organizations to help small, start-up businesses gain the technical assistance and training they need to win the future," said Agriculture Secretary Tom Vilsack.
Improving communications technology in rural communities is also a focus of the Federal Communications Commission. The agency's National Broadband Plan calls for expanding high-speed Internet access that is expected to improve job creation, healthcare services and consumer welfare in outlying areas.