lillian salerno

Open any food magazine these days and you’re bound to find a profile of the latest locavore start-up turning cream and cantaloupe into craft popsicles or maple sap into a whole new category of bottled beverages.  As consumer demand for local foods continues to climb like pole beans, venture capitalists are scouring this sector in search of the next hot investment.

USDA has long been investing in this space too, for the good of rural economies. And now we’re unveiling a new online interactive training to help other funders understand the work of regional food enterprises that are connecting local producers with local markets, and why they might want to invest in a piece of this pie.

This Thursday, July 16, Agriculture Secretary Tom Vilsack and I, along with staff from my Rural Business Energy Division, will have the honor to host a national stakeholder forum on the improvements to, and opportunities available, under the new Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program (Section 9003), formerly the Biorefinery Assistance Program.

The forum begins at 12:30 Eastern Time. While seating is limited, you can participate via a webinar, which can be accessed at: https://www.webcaster4.com/Webcast/Page/789/9401.

Since 2009, USDA has invested in 29,100 local food opportunities, including food hubs, small scale processing and farmers markets across all 50 states and the US territories. These investments include over 12,000 loans and micro-loans to small-scale producers who often sell products locally and over 13,000 high tunnels (low-cost covered structures that extend the growing season and make locally-grown products available later in the year).

However, as with any investment, the success of a business depends not just on an infusion of capital, but also on good planning.  Technical assistance services such as feasibility studies, business planning, financing strategies, supply chain logistics, marketing, and guidance with the policy and regulatory environment are equally important.

Last month, Secretary Vilsack announced the opening of the new application cycle for our Rural Energy for America Program (REAP). In addition to the announcement, RBS conducted a national REAP stakeholder forum which discussed program changes and provided examples of successful projects from previous years.

For example, Ideal Dairy restaurant of Richfield, Utah used a REAP grant to leverage a loan from Zions Bank and install an array of solar panels on the roof of its retail location. The addition has saved an average of $400 a month in electricity expenditures for owners Kristi and Gary Sorenson. A larger scale solar project in Guayanila, Puerto Rico allowed a major employer – Master Paints and Chemicals Corporation – to completely offset its $180,000 annual energy expenses and give it independence from fossil fuel-based energy.

Erik Chaffer considers himself an optimist. Still, he found himself feeling pretty low as he watched the Great Recession knock the legs out from under the rural Ohio ethanol plant he helped manage.

“Everything was pretty good until July 2008. It was just a ‘perfect storm’ type of situation,” said Chaffer. “The unknown is the worst part of it. You can’t make plans for the future. It’s a very stressful, unnerving way of life.”

In his Small Business Week Proclamation earlier this week, President Obama said, “Small businesses represent an idea at the heart of our Nation's promise -- that with ingenuity and hard work, anyone can build a better life.”

Having started my own manufacturing company in rural Texas many years ago, I believe small business folks are American heroes. What it takes to get a business going and the immense responsibility of employing others and developing markets is very hard work especially in rural areas.  The work of an entrepreneur is also rewarding and those relationships with employees, customers and the community are lifelong.  For rural entrepreneurs, their companies are part of the fabric of the community.

One of the main obstacles getting a business off the ground is locating the capital to invest in communities.  Seeking a business loan or receiving an equity investment is such a critical path for startups and to keep entrepreneurship vibrant in rural America because we know the type of jobs created by small business are the ladders of opportunity.

By now, we’re all familiar with the uniquely American shopping frenzy known as “Black Friday.” Almost before the Thanksgiving leftovers are even in the fridge, Big Box stores throw open their doors, offering sales geared toward holiday shoppers wrangling for the best deals. Black Friday has become as much of a November tradition as pumpkin pie, but for the past few years, small businesses around the country have been offering an enticing alternative to the long lines and early wake-up calls that come with the craze. USDA’s Rural Business-Cooperative Service (RBCS) is pleased to join the White House, the Small Business Administration and 1,400 American communities in celebrating Small Business Saturday on November 30.

Small Business Saturday is all about buying local and shopping small. Shopping small for both holiday gifts and everyday items not only can save you money, it also offers you access to one-of-a-kind, locally-made products as an alternative to “cookie-cutter” gifts. Small Business Saturday is designed to support the businesses that drive commerce in small communities; businesses that account for 44 percent of the private sector payroll and create two out of every three new jobs in America.

Veterans returning home from overseas tours-of-duty face many challenges as they readjust to civilian life, and one of the most daunting ones is finding employment. Last year, a new program — the Soldiers to Civilians (S2C) Project — was started in rural west Tennessee to give local veterans the training and skills they need to enter into the field of precision agriculture. Thanks to grant assistance from the Department of Agriculture (USDA), project leaders will now be able to expand the S2C program beyond west Tennessee to help even more veterans living in the rural delta areas of east Arkansas and west Mississippi.

The expansion was funded, in part, through USDA's Rural Business Enterprise Grant (RBEG) program, which promotes development of small and emerging businesses in rural areas. Rural Business-Cooperative Service Administrator Lillian Salerno announced the award during a visit to the Memphis Bioworks Foundation, a bioscience-oriented nonprofit organization that is a partner on the S2C project. Memphis Bioworks is one of more than 130 projects in 30 states and the Commonwealth of Puerto Rico that are receiving RBEG funds.

While many manufacturing companies provide well-paying jobs and play a vital role in creating vibrant, healthy rural communities, sometimes rural communities may struggle to attract these companies. To help bridge this gap, the Investing in Manufacturing Communities Partnership (IMCP) was created. This Administration-wide effort brings together federal departments and agencies to provide coordinated assistance to communities to become more attractive for manufacturers.

Recently, USDA hosted two IMCP events in Minnesota and California with diverse audiences of about 120 stakeholders representing manufacturing businesses, lenders, economic development organizations, universities and community colleges, small businesses development centers, and local leaders among others. At both meetings, USDA Rural Business-Cooperative Service Administrator Lillian Salerno led panels of federal partners that discussed the initiative and sought input on the needs of local manufacturers.

Last month, I joined Secretary Vilsack in announcing National Small Business Week on behalf of the U.S. Department of Agriculture in Louisiana. In support of rural small businesses, USDA announced several funding opportunities across the country for business owners to increase their capacity to hire new workers and expand their businesses. Small Businesses are the lifeblood of every community, but in a rural town one small business can mean the difference between a thriving main street and empty windows. This is why the work that USDA does on behalf of rural America is so important.

The state office for Rural Development is located in Central Louisiana where I met State Director Clarence Hawkins and his staff before we headed out to visit local businesses. The first stop was Consolidated Energy Holdings in Pollock. A variety of waste sources is produced by the company. Later, I had the opportunity to speak at the Cenla Small Business Appreciation Luncheon at the Central Louisiana Business Incubator in Alexandria. I was so inspired by the business incubator, which the city started as a workforce training facility for those with the desire to grow and expand their businesses. The incubator provides business owners with growth strategies, financing options, resources, and administrative support to name a few. There is an industrial kitchen available to use for food based business opportunities and specialty food producers. This incubator is the epitome of what small communities across rural America should be doing, making investments in their own citizens to foster job growth.