Posts Tagged ‘USDA’

MVEDA’s Business on the Border Luncheon this past Tuesday featured a group of commercial lenders who addressed some of the obstacles to obtaining financing faced by today’s business owners.  Our panelists/speakers included Kim Hakes from Citizens Bank, Michael Cheney from Wells Fargo, and Clyde Hudson from USDA, each providing perspectives on the state of available financing in today’s economy.   We thank them for taking their time and expertise they provided to the group.  Access to financing is a subject matter that is not only important for the sustainability of all local businesses, but it is also extremely relevant with respect to economic development and business attraction.

Photo by Gabriel Vasquez, Las Cruces Bulletin

We find that as economic developers, we are being asked more and more to find localized financing solutions to companies looking at expanding into the region.   This is a significant shift from just two years ago when the primary concerns of clients were workforce labor and real estate.  Therefore it was positive to hear from our banking panelists that they were beginning to see a recovery in commercial lending and it was great to hear from Mr. Hudson how active USDA has been in their lending programs during these challenging economic times.

At MVEDA, we are also looking to identify and work with programs that might assist with business financing needs.  We are also pro-actively marketing and promoting the business assets we have in the region that make us great destination for certain industries.  In mid-March, MVEDA joined the Greater Las Cruces Chamber of Commerce and New Mexico State University as part of a delegation that went to Washington, D.C. to promote and support activities at White Sands Missile Range.  In April, MVEDA will be participating in two aerospace tradeshows, Space Access 2010 in Phoenix, and the National Space Symposium in Colorado Springs.  This is part of MVEDA’s continued support of Spaceport America and growing our commercial aerospace potential.  Finally, in the last week of April, MVEDA will be attending the International Asset Management Council (IAMC) Conference which is made-up of leading site selection consultants and corporate real estate decision makers from throughout the country.

MVEDA’s lead generation is still very active led by the renewable energy cluster which makes up 34% of all of our leads for the year.  This past month showed stronger industry balance in new leads generated with the biggest increase in lead generation found in the business/finance sector.

Press Release Courtesy of the New Mexico Farm Service Agency

Salomon Ramirez, State Executive Director for the New Mexico Farm Service Agency (FSA), reminds producers that FSA has targeted loan funds for producers that are recognized as Socially Disadvantaged (SDA) farmers or ranchers. These loan programs are designed to help farmers purchase and operate family farms.

With these loan programs, FSA’s mission is to reverse the declining number of farmers and ranchers across the United States and to encourage and assist them in owning and operating their own farms and ranches, participate in agricultural programs, and become integral parts of the agricultural community.

FSA reserves a portion of its loan guarantee funds each year for SDA loans. Ramirez says SDA’s are individuals or entities who are members of a SDA group.  A SDA group is a group whose members have been subjected to racial, ethnic, or gender prejudice because of their identity.  These groups consist of American Indian or Alaska Natives, Asians, Blacks or African Americans, Native Hawaiians or Pacific Islanders, Hispanics and women.

Direct loans are made to applicants by FSA and include both farm operating and farm ownership loans.

Guaranteed loans also may be made for farm ownership or operating purposes, and may be made by any lending institution, subject to Federal or State supervision, who make agriculture type loans (banks, savings and loans, credit unions, and units of the Farm Credit System including the Bank for Cooperatives) and guaranteed by FSA. Typically, FSA guarantees 90 or 95 percent of a loan against any loss that might be incurred if the loan fails.

According to Ramirez, “Repayment terms for direct operating loans depend on the collateral securing the loan and usually run from 1 to 7 years and repayment terms for direct ownership loans can be as long as 40 years.”

Guaranteed loan terms are set by the lender. Interest rates for direct loans are set periodically according to the Government’s cost of borrowing. Interest rates for guaranteed loans are established by the lender.

Farm ownership loan funds may be used to purchase or enlarge a farm or ranch, purchase easements or rights of way needed in the farm’s operation, build or improve buildings such as a dwelling or barn, promote soil and water conservation and development, and pay closing costs.

Farm operating loan funds may be used to purchase livestock, poultry, farm equipment, fertilizer, and other materials necessary to operate a successful farm. Operating Loan funds can also be used for family living expenses, refinancing debts under certain conditions, paying salaries for hired farm laborers, installing or improving water systems for home, livestock, or irrigation use, and other similar improvements.

Applications for all FSA direct loan programs are made through FSA’s local county offices.  Producers interested in these loans should visit their local county office for eligibility, application and related program details.

USDA is an equal opportunity employer and provider.

The USDA is now accepting applications for up to $1.7 billion to fund projects that help spur business activity and economic growth in rural communities. This infusion of money from the American Recovery and Reinvestment Act into rural business is designed to create and save jobs and help rural communities grow and prosper.

The purpose of the Business and Industry Guaranteed Loan Program is to improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities. This purpose is achieved by bolstering the existing private credit structure through the guarantee of quality loans which will provide lasting community benefits. It is not intended that the guarantee authority will be used for marginal or substandard loans or for relief of lenders having such loans.

These guaranteed loans may be used for purposes to include but are not limited to the following:

• Business and industrial acquisitions when the loan will keep the business from closing, prevent the loss of employment opportunities, or provide expanded job opportunities.
• Business conversion, enlargement, repair, modernization, or development.
• Purchase and development of land, easements, rights-of-way, buildings, or facilities.
• Purchase of equipment, leasehold improvements, machinery, supplies, or inventory.

Application materials must be requested from a local USDA Rural Development office. The Las Cruces office is located at 2507 N. Telshor, Suite 3 (575-522-8775 ext 4). For detailed information see the USDA website.