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Wednesday, October 21, 2009
NELSON: $7.2 MILLION IN LOAN GUARANTEES FOR RURAL NEBRASKA BUSINESSES

October 21, 2009 – Today, Nebraska’s Senator Ben Nelson welcomed an announcement by the U.S. Department of Agriculture that Nebraska will receive $7.2 million to support loans for rural businesses in the state.  The funding is part of the American Recovery and Reinvestment Act of 2009.

“These stimulus funds will offer a lifeline to rural businesses in this difficult economic climate,” said Senator Nelson.  “Rural businesses have an outsized impact in the rural communities they serve.  These funds will support rural communities in Nebraska by creating and retaining much-needed jobs.”

Nebraska will receive loan guarantees for a $7 million loan supplied through Union Bank and Trust in Lincoln, and a $290,000 loan supplied through Cornerstone Bank in Stromsburg.  The funds are part of USDA Rural Development’s Business and Industry Guaranteed Loan Program which supplies funding to assist rural businesses and business development.  For example, the loan for Stromsburg will keep a local grocery store open by supporting the purchase of the store from the current owner, who is retiring.

According to USDA, eligible Business and Industry Loan Program applicants include private businesses, cooperative organizations, corporations, partnerships, non-profit groups, federally recognized Indian tribes, public bodies and individuals. The funds are targeted to create and retain quality jobs and serve difficult-to-reach populations and areas hardest hit by the current economic downturn. A full explanation of the program can be found at www.rurdev.usda.gov/rbs/busp/b&i_gar.htm.

Senator Nelson played a key role in the passage of the $787 billion stimulus bill. He worked with a bipartisan group of nearly 20 Senators to better focus The American Recovery and Reinvestment Act on tax cuts for the middle class and job creation for millions of Americans. Senator Nelson led the group through the initial bill line by line, dollar by dollar, to reduce spending and cut out $108 billion of inefficient or less-stimulative spending. The bipartisan group helped the improved bill win congressional approval. President Obama signed it into law February 17, 2009.
 
Senator Nelson is posting information about the release of stimulus finds on his website as it becomes available.  Visit http://bennelson.senate.gov/feature_4.cfm for more information.

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