U.S. Department of Agriculture Ohio Rural Development State Director David L. Hall announced the agency is awarding its first-ever Business & Industry Loan Guarantee using targeted CARES Act funds through USDA’s Business-Cooperative Services program.
“In uncertain times, efforts to help stabilize rural business and manufacturing take on special significance,” Hall said. “The B&I Loan Guarantee program puts the backing of the federal government behind local lenders and boosts their confidence in investing. As we grapple with the effects of the COVID-19 pandemic, this truly is the time for ‘all hands on deck,’ and we’re proud to work with Ohio’s hometown banks in support of the rural businesses that keep America running.
“Under the leadership of President Trump and Agriculture Secretary Perdue, USDA has been working tirelessly to be a strong partner to rural Ohio in building stronger and healthier communities, because we know when rural America thrives, all of America thrives.”
Like many U.S. businesses and manufacturers, Appalachian Oilfield and Industrial services experienced a downturn in operations resulting from the COVID-19 pandemic. With funding from Marietta-based Peoples Bank, the business will combine a standard $1.1 million B&I loan guarantee to undertake debt consolidation with a $1.9 million CARES Act B&I loan guarantee for use as working capital. Headquartered in Sardis (Monroe County) and in business since 2014, the company provides equipment rental, non-hazardous oilfield waste spill response and cleanup, and general logistical services to the burgeoning oil and gas industry positioned along the Marcellus and Utica shale plays in Ohio, Pennsylvania, and West Virginia.
Lenders interested in participating in the USDA B&I Loan Guarantee program need the legal authority, financial strength and sufficient experience to operate a successful lending program. Examples of such lenders include federal or state-chartered banks, savings and loans institutions, farm credit banks, and credit unions. Entities eligible to apply for the Business & Industry Loan Guarantee Program, including special authority CARES Act funding, include for-profit and non-profit businesses, cooperatives, federally-recognized tribes, and public bodies supporting rural areas outside of a city or town with populations of fewer than 50,000. Additional requirements and restrictions apply. A USDA B&I Loan Guarantee CARES Act public service announcement on the subject is available at youtube.com/watch?v=axU-sN9-kqk&feature=youtu.be.
A more in-depth webinar is available at youtube.com/watch?v=0MLwOoJubSk&feature=youtu.be. For more information about the B&I Loan Guarantee program in Ohio, call 614-255-2420.
USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs 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 areas. For more information, visit www.rd.usda.gov.