USDA grants funds to four Valley communities

August 04, 2009 10:29 AM

By MINERVA MORATO/Mid-Valley Town Crier

WESLACO — Relief for small business may soon arrive to four rural communities across the Rio Grande Valley with the aid of federal grants to be distributed by the United States Department of Agriculture in an ongoing economic recovery effort. On July 28, U.S. Secretary of Agriculture Tom Vilsack announced the distribution of $15.3 million to 145 community recipients across the country to start or expand small businesses with funds provided through the American Recovery and Reinvestment Act of 2009. In Texas, the USDA will grant $300,000 each to the Development Corporation of Mercedes, La Feria Industrial Development Corporation, and the Port Isabel and Hidalgo economic development corporations, the only communities in the state to receive such grants.

“The availability and use of Recovery Act funds to provide much needed credit to small and emerging private businesses in areas that were formerly not eligible will retain jobs and promote job growth,” said Paco Valentin, state director at the Texas USDA Rural Development Office in Temple.

Rafael Tapia, project manager for the Economic Development Corporation of Mercedes, said the funds granted to the city will be used toward small businesses as a financing and loan program. “We’re in charge of lending it out to small businesses that are trying to expand…but it focuses mainly on businesses in rural areas,” Tapia said. “First, though, we have to establish that we have people who want to participate in the program before the USDA releases the money.”

Director of the Mercedes EDC Alberto Gonzalez said that the funding, which has already been allocated to city’s economic board, will help in the continued efforts of supporting small businesses. “Right now we have people who are submitting applications, so we are working through a list of potential recipients,” Gonzalez said. When utilization of the funds is established by the designated rural development boards, meetings are set up, paperwork is filed and funds are transferred, Gonzalez said.

The American Recovery and Reinvestment Act of 2009 was signed into law on Feb. 17 by President Barack Obama. According to the USDA, the Recovery Act is designed to jumpstart the nation’s economy, create or save millions of jobs and put a down payment on addressing long-neglected challenges. It also includes measures to modernize the nation’s infrastructure, enhance energy independence, expand educational opportunities, preserve and improve affordable health care, and provide tax relief.

“These Recovery Act grants represent the Obama administration’s ongoing efforts to ensure strategic investments and increase economic opportunities in rural America,” said Vilsack upon announcing the nationwide distribution of grants. “Small businesses play an important role in building strong communities while providing vital products and services to local residents. “This funding will help spur important economic development and strengthen communities in dozens of states around the country.”