rural economic development loan program

What began as an individual physician medical practice in 1859 in the small rural community of Onaga, Kan., has grown into a regional healthcare system spanning 10,000 square miles in three counties in northeast Kansas.  The vision for this regional system was seeded by dedicated doctors, nurses, and hospital staff and guided to fruition by a series of forward-thinking hospital administrators and board members.

Last month, Community HealthCare System (CHCS) took another step forward and cut the ribbon on their new hospital/hospital renovation project in Onaga.  The project was financed through a $17.59 million Community Facilities direct loan from USDA Rural Development and a companion $2 million USDA Rural Economic Development Loan from Bluestem Electric Cooperative.

To me, the phrase 'economic development' is more than a buzzword – and that was reinforced during an all-too-brief trip to western South Dakota. It's easy to get caught up in the policymaking and program implementation in Washington, D.C., and I find great value in getting to the field so I can see exactly how these programs are helping our local stakeholders and partners, small business lenders, and entrepreneurs make investments in the local economy.

I started out the day in Sturgis, where we met up with Legends Suspensions owner Jesse Jurrens. With the backing of two Business & Industry Guaranteed Loans, Jesse has shaped and changed the sport and lifestyle of motorcyclists globally. With his lean and efficient business model, he's become a global force in motorcycle suspensions. We also visited Landsport, another Sturgis-based business that specializes in manufacturing and marketing aluminum loading ramps, drop deck ramps, service ramps, and other custom applications. Landsport used a Business & Industry guaranteed loan to expand its production and work staff. After meeting with the staff at both facilities, I walked away knowing these operations have a long-term vision for success and growth.  USDA and our lending partners helped give them the freedom to execute that vision.

After 40 years, the John Deere dealership in Ashley, North Dakota has moved, but not far. About a mile down the road, over 250 people recently gathered to celebrate the grand opening of Green Iron Equipment’s new $2 million facility. USDA Rural Development helped finance the project by partnering with a local cooperative, KEM Electric. Through the Rural Economic Development Loan Program, Green Iron Equipment received a $740,000 loan.

The original dealership consisted of four separate buildings in downtown Ashley. Two of those structures housed small service shops that could not accommodate large farm machinery.