United States Department of Agriculture • Rural Development
Kentucky State Office • 771 Corporate Drive • Suite 200 • Lexington, KY 40503
Phone: (859) 224-7306 • Fax: (859) 224-7349 • Web: http://www.rurdev.usda.gov/ky
Contact: Katherine Belcher
Agriculture Deputy Secretary Merrigan Announces Support to Increase Economic
Development Opportunities, Create and Retain Jobs in Rural Communities
LEXINGTON, Ky., May 13, 2010 – Agriculture Deputy Secretary Kathleen Merrigan
today announced the recipients of loans and grants to spur economic development and create or
save jobs in rural areas, including $750,000 for a Kentucky business.
“The funding we are announcing today will help rural businesses and entrepreneurs obtain the
financing they need to thrive, grow and create jobs,” Merrigan said. “These grants and loans
represent the Obama Administration’s ongoing commitment to ensure that rural communities
attract capital investments that lead to business development and job creation.”
To help create new economic opportunities, USDA has selected small businesses from across
the country to receive funds under the Rural Economic Development Loan and Grant program,
as well as the Rural Business Enterprise Grant Program for Rural Economic Area Partnerships.
Additionally, loans are being made through USDA Rural Development's Intermediary
Relending Program (IRP), including $750,000 for Kentucky Highlands Investment Corporation
(KHIC) – a development venture capital company based in London, Ky.
Through IRP, Rural Development provides funds to community development or regional
planning groups who then re-lend them to local businesses. Loans are used to start new
businesses, expand existing ones and create or retain jobs. In all, USDA announced more than
$21.3 million today to provide economic development and business creation opportunities for
rural communities across the nation. Funding is authorized by the Food, Conservation, and
Energy Act of 2008 (Farm Bill).
KHIC was formed in 1968 to stimulate growth and create employment opportunities in a nine-
county region of Southeastern Kentucky. In 2003, KHIC expanded the service area to twenty two
counties, which includes the counties of Bell, Clay, Clinton, Cumberland, Estill, Harlan, Jackson,
Knox, Laurel, Lee, Leslie, Letcher, Lincoln, Madison, McCreary, Owsley, Perry, Pulaski,
Rockcastle, Russell, Wayne and Whitley. Its mission is to provide and retain Employment
Opportunities in Southeastern Kentucky through sound investments and management assistance.
The funds announced today are part of USDA’s annual budget and are not from the American
Recovery and Reinvestment Act. Funding of each loan or grant is contingent upon the recipient
meeting the conditions of the agreement.
USDA, through its Rural Development mission area, administers and manages more than 40
housing, business and community infrastructure and facility programs through a national
network of 6,100 employees located in the nation’s capital and 500 national, state and local
offices. These programs are designed to improve the economic stability of rural communities,
businesses, residents, farmers and ranchers and improve the quality of life in rural America.
Rural Development has an existing portfolio of more than $134 billion in loans and loan
USDA is an equal opportunity provider, employer and lender. To file a complaint of discrimination, write: USDA,
Director, Office of Civil Rights, 1400 Independence Ave., S.W., Washington, D.C. 20250-9410 or call (800) 795-
3272 (voice), or (202) 720-6382 (TDD).