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Trump Administration promotes economic development in Kansas cities

Source: AP
Source: AP(WTOK)
Published: Sep. 30, 2020 at 5:31 PM CDT
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TOPEKA, Kan. (WIBW) - The Trump Administration has provided over $2.65 million to Kansas cities in order to promote economic development.

The U.S. Department of Agriculture says its Rural Development State Director for Kansas, Lynne Hinrichsen, announced that it would be investing $2,659,746 in loans and grants to support rural economic development.

“This economic development funding is a great asset for rural communities to save and grow jobs,” Hinrichsen said. “Under the leadership of President Trump and Agriculture Secretary Sonny Perdue, USDA has been working tirelessly to be a strong partner to rural Kansas in building stronger and healthier communities, because we know when rural America prospers, all of America prospers.”

The USDA said projects are as follows:

  • Alma - This project will provide a $600,000 loan to Grandma Hoerner’s Foods, a food processing facility, to make building improvements and purchase additional equipment. The applicant will provide an additional $150,000 toward the project and the project will create 19 jobs.
  • Cheney - This project will provide a $422,800 loan to SPK Grocery Inc. and SPK Holdings LLC to make purchases and improvements to a grocery store in Cheney, Kan. The borrower will provide an additional $56,000 and private/commercial sources will provide an additional $49,700 toward the project for a total project amount of $528,500. The project will save 16 jobs.
  • Colby - This project will provide two loans of $870,000 and $150,000 to Citizens Medical Center Inc. to purchase an MRI machine and make building improvements to the MRI department at the hospital. The $150,000 Rural Development investment will be used to create a revolving loan fund through Rural Telephone Service Company Inc. The initial loan through this revolving loan fund will be made to Citizens Medical Center. Both loans through Rural Telephone will then be loaned to Citizens Medical Center Inc. The applicant will provide an additional $217,500 toward the project and it is expected to save 14 jobs.
  • Leavenworth - This project will provide a $116,946 loan to Next to Nature Farm to construct a new facility and purchase extraction and harvesting equipment. Next to Nature Farm is a bee farm of 58 hives. They also produce fresh fruit, fruit products and operate two area farmer’s markets. The applicant will provide an additional $29,236 toward the project and the project will create four jobs.
  • Wellington - This project will provide a $500,000 loan to assist the city of Wellington with necessary improvements to the existing emergency department so that the facility can reopen. The applicant will provide an additional $200,000 toward the project, Ascension via Christi will additionally provide $1,134,914 and the project will create 25 jobs.

According to the USDA, the funding is being provided through USDA Rural Development’s Rural Economic Development Loan and Grant (REDLG) Program providing zero-interest loans to local utilities that they pass through to local businesses, which are the ultimate recipients, for projects that will create and retain employment in rural areas. It said the ultimate recipients repay the lending utility directly and the utility is then responsible for repayment to the USDA.

The USDA said the REDLG program also provides grants to local utility organizations that use the money to establish a Revolving Loan Fund. It said loans are made from the revolving loan funds to projects that will create or retain rural jobs.

More information about the program is available here.

Copyright 2020 WIBW. All rights reserved.

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