Estimate of 816 jobs saved – La Tribune
South Point Company Receives $25 Million
WASHINGTON, DC – United States Senator Sherrod Brown, D-Ohio, announced that the United States Department of Rural Development has awarded $28,250,011 to four organizations in southeast Ohio.
One of them is McNational, Inc., in South Point, which provides barge towing, floating, harbor, repair and new construction services for the marine industry on the Ohio and Mississippi rivers.
McNational receives a $25 million business and industry loan guarantee. Funding is needed due to the decrease in river traffic which has led to a drop in demand for sales and repair services. These funds will be used at their South Point location and other rural locations along the Ohio and Mississippi rivers.
Dani Carlson, Brown’s press secretary, said the move is expected to save 816 jobs.
“The USDA is doing its research to try to make sure loan recipients have the resources and tools they need to not default on their loans,” Carlson said. “These business and industry loans are guaranteed by the federal government, which means that in the event of default, the government agrees to pay the lending institution 80% of the loan.”
Brown said the awards will benefit rural Ohio.
“Small businesses face unique challenges, and this federal funding will make the investments local businesses need and strengthen economic growth in their communities,” Brown said in a press release about the executive’s passage. “I’m happy to see the Biden administration continue to deliver on its promise of putting Ohioans first and investing in rural communities.”
USDA’s Rural Development Program provides grants and loan guarantees to help create jobs, support economic development, and provide essential services.
The Value-Added Producer Grant Program helps agricultural producers create new products, create and expand marketing opportunities, and increase incomes. The Business and Industry Secured Loan Program is designed to help rural businesses obtain credit for legal business purposes in an effort to save and create jobs in rural America.
The Rural Microentrepreneurs Assistance Program provides loans and grants to help microenterprise development organizations cover start-up costs, grow, and provide training and technical assistance to microcredit borrowers and microentrepreneurs.
Lawrence County’s price made up the bulk of those in southeastern Ohio. Others on the list included:
• $63,250 grant to value-added growers to Mushroom Harvest Provisions, LLC in Meigs County to provide working capital, marketing and distribution of pickled shiitake mushrooms.
• $3,180,000 business and industry loan guarantee to Eriksten Holdings, LLC in Hocking County for the purchase of real estate that the company leases for The Carlin House, an assisted living facility.
• $6,761 grant from the Rural Microentrepreneurs Assistance Program to the Pike Community Action Committee in Pike County to provide technical assistance to the recipient’s revolving loan fund.