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In rural America, the local community drives the rural economy. Main Street businesses are critical to economic growth. Money spent and invested locally rolls through a community and generates even more economic benefits.

That’s why rural small businesses are critical to strong rural communities. And it’s why USDA is pleased to join with the Small Business Administration to recognize and honor America’s small businesses this week, during National Small Business Week.

It may be spring time, but the staff of Northern Girl already has big plans for fall, when their new vegetable processing facility officially opens in Van Buren, Maine. Funded in part through a USDA Rural Development Rural Business Enterprise Grant (RBEG), the new 4,000 square foot facility will allow for the potential for year round processing of locally-grown vegetables.

This project is a really valuable asset - not only does it support a growing Maine business and 12 rural northern Maine farms, but it also puts fresh, locally-grown vegetables, “bounty from the county,” on the shelves for consumers in Maine and other parts of New England to enjoy. It reflects USDA Rural Development’s solid commitment to support local and regional food systems.

“The Rural Business Enterprise Grant program (RBEG) is one of the most flexible economic development opportunities offered by USDA Rural Development.”  Those words from New Mexico State Director Terry Brunner kicked off a webinar workshop recently to discuss the RBEG program and how to apply for funds.

In the past, here in New Mexico, the RBEG has been used to fund business incubators, feasibility studies, business plans, and it has financed technical assistance programs for business development.

Earlier this month, the staff from Rural Development’s State Office in New Mexico hosted a workshop that gave a complete overview of the RBEG program explaining the funding is made available to public bodies, nonprofit organizations, public and private nonprofit institutions of higher education, and Indian tribes to facilitate and finance the development of small and emerging private business enterprises in rural communities and cities up to 50,000 in population.

Earlier this month, USDA Rural Development staff, Intermediary Relending providers and partners held a Rural Job Maker Initiative Roundtable at the Rural Development State Office in Raleigh, North Carolina.

Earlier this week Deputy Under Secretary for Rural Development Doug O’Brien and Congressman Bruce Braley met with nearly 30 northeast Iowa producers and residents to discuss the important role rural economic development provisions have in the upcoming discussions of the next farm, food and jobs bill.

O’Brien said a goal with the next farm bill is to make it easier for people to access USDA support, ensuring that emerging rural businesses have the capital they need to grow and create jobs, and investing in communities pursuing regional growth.

This week, Agriculture Deputy Secretary Kathleen Merrigan toured the Main Street of Momence, Il, to view the positive growth made possible by USDA’s investments in rural revitalization. The community was decorated with corn stalks and fall mums to welcome Agriculture Deputy Secretary Merrigan to this town of 3,200 people, located 50 miles south of Chicago.  Merrigan and Momence residents enthusiastically toured several businesses that received financing thanks to a USDA Rural Business Enterprise Grant (RBEG), administered by the USDA Rural Development agency.  Last year USDA provided a $99,000 grant to “Main Street Momence,” a preservation and volunteer based economic development program, to help them establish a revolving, low-interest loan fund.  The program is designed to help small businesses locate or remain in Momence’s historic downtown area. Thirteen months later, four businesses have taken advantage of the increased access to credit by taking out loans. As a result, these businesses have created 27 new full time jobs and saved another 21 in this past year alone.

USDA Administrator of Business and Cooperative Programs Judy Canales got a taste of true southern hospitality when she visited Kentucky recently. Canales was able to experience the products of local artisans and agriculture producers that were on display in new Bath County Agricultural Education and Marketing Center in Owingsville.

Back in 1947, nearly one-third of the labor force worked on farms. In those days if you didn’t have a relative who worked on a farm, you knew someone who did. As time and technology progressed and jobs moved from farms to factories, generations began to lose their connection to agriculture and the land as the source of their food. Currently, there is too much distance between consumers and those who produce their food.

But, there is also hope for those of us working to rebuild this critical connection. Last Friday I presented a $175,000 Rural Business Enterprise Grant (RBEG) to provide critical access to credit to a group of small family farmers who are building a bridge to consumers and stimulating the local economy through local foods. This project is a great example of how USDA Rural Development programs can advance the Know Your Farmer, Know Your Food initiative.

By Virginia Manuel, USDA Maine Rural Development State Director

USDA Rural Development provided a Rural Business Enterprise Grant to assist the Maine Alternative Agriculture Association (MA³) to renovate the former Grange Hall in Starks into a modern facility for processing and distributing local farm products.

An open house was held on July 28^th to celebrate the completion of the project, which now includes a new kitchen and cold storage facility.  The association will contract with local farmers to provide farm products that will be collected, processed and distributed from the new facility.  The farm products will be ‘beyond organic’ by emphasizing sound soil management as well as being pesticide free.

By Vicki Walker, USDA Rural Development Oregon State Director

Victor Vasquez, USDA Deputy Under Secretary for Rural Development, delivered a strong, upbeat message to grant recipients at the Community Services Consortium Youth House Gardens in Corvallis, Oregon on July 12.  The Deputy Under Secretary was in Oregon to highlight the USDA “Know Your Farmer, Know Your Food” initiative, and to emphasize the importance of Rural Development programs in delivering on economic recovery efforts.