COMMUNITY ADJUSTMENT AND INVESTMENT PROGRAM EXPANDS AREAS ELIGIBLE FOR RURAL DEVELOPMENT BUSINESS & INDUSTRY LOANS
Washington, DC -- September 26 - The U.S. Treasury Department today announced that businesses in 12 new communities and surrounding areas are eligible for loans or loan guarantees through the Community Adjustment and Investment Program (CAIP). These new sites join the 35 communities that were declared eligible in August.
The CAIP is designed to provide economic assistance to communities that have suffered harsh economic changes due to new and fluctuating world trade patterns. To date 47 communities have been identified as having suffered job losses resulting from the implementation of the North American Free Trade Agreement (NAFTA).
"This program exemplifies the Administration's commitment to helping rural communities that have suffered economic hardships attributable to NAFTA," Under Secretary for Rural Development Jill Long Thompson said. "I urge rural community leaders to explore the options now available due to the CAIP. This new partnership program is designed to spur economic growth and fuel community development and we at USDA are excited that we can contribute."
The expanded areas include communities in Alabama, Georgia, Kansas, Louisiana, Ohio, South Carolina, Tennessee, Texas and Virginia.
"While NAFTA has helped stimulate the nation's robust economy there have been areas which have experienced trade-related job losses," Arthur Campbell, Deputy Under Secretary for Policy and Planning stated. "The CAIP is designed to help the areas that have experienced substantial job losses by providing financial assistance to generate new business."
The new program will make loan guarantees available through USDA's Business and Industry Program and the Small Business Administration's (SBA) 7 (a) loan program. Loans will be available through the North American Development Bank (NADBank). NADBank is an international financial institution jointly capitalized and governed by the United States and Mexico to finance domestic investment in both countries.
To be eligible, a rural business must meet three criteria -- (1) be located in an eligible community, (2) meet conventional B&I loan standards and (3) be able to show that it will create or retain at least one job for every $35,000 of the total loan amount. Interested rural business owners in the affected areas (SEE LIST) should contact their USDA State Office for more information.
Communities that have suffered negative impacts by NAFTA-related changes in trade and commerce patterns that are not on the list of designated areas can petition the NADBank Office in Los Angeles for inclusion.
Community Adjustment and Investment Program Eligible Areas
Newly designated areas in bold.
ALABAMA: Butler, Conecuh, Covington, Crenshaw, Lowndes, Monroe, and Wilcox Counties
ALASKA: Ketchikan, Gateway, and Borough Counties
ARKANSAS: Mississippi, Monroe, Prairie, Woodruff, Randolph, Sharp, Lawrence, and Clay Counties
CALIFORNIA: *Pacoima (Zip Code 91331)
*Santa Ana (Zip Codes 92701, 92703, and 92705)
Watsonville area (Zip Codes 95003, 95076, 95019, 95020, 95004,
95039, 95012, 95045, 95023, 93933, and 93907)
CONNECTICUT: Windham County
GEORGIA: Terrell, Calhoun, Randolph, Toombs, Montgomery, Wheeler Ben Hill, Dodge, Jeff Davis, Telfair, and Wilcox Counties
IDAHO: Benewah, Bonner, Kootenai, and Shoshone Counties
INDIANA: White County
KANSAS: Coffey and Osage Counties
LOUISIANA: Red River, Bienville, De Soto, Natchitoches, Acadia, Avoyelles Evangeline, Iberville, Pointe Coupee, St. Landry, and St. Martin Parishes
MICHIGAN: Gogebic, Houghton and Ontonagon Counties
MISSOURI: *St. Joseph area (Zip Codes 64501, 64503, 64504, 64505, 64506 and 64507)
NEW JERSEY: *Elizabeth (Zip Codes 07201 and 07206)
NEW YORK: Oswego County
*Syracuse (Zip Codes 13202 and 13204)
N. CAROLINA: Beaufort, Edgecombe, Nash, Halifax, Martin, Wilson, Richmond, Robeson, and Scotland Counties
OHIO: Highland, Guernsey, Morgan, Muskingum, Noble, and Perry Counties
PENNSYLVANIA: Mifflin, Huntington, and Juanita Counties
*Erie Area (Zip Codes 16501, 16502, 16503, 16504, 16505, 16506,
16507, 16508, and 16509)
S. CAROLINA: Clarendon, Florence, Georgetown, and Williamsburg Counties
TENNESSEE: Clay, Macon, Crockett, Cumberland, Dyer, Gibson, Lauderdale Obion, White, and Van Buren Counties
TEXAS: *Brownsville (Zip Codes 78520 and 78521)
*El Paso (Zip Codes 79901, 79905, 79907, 79915, 79935, 79936)
*Robstown (Zip Codes 78380 and 78410)
*Tyler (Zip Codes 75701, 75702, 75703, 75704, 75705, 75706,
75707, 75708, and 75709)
Hidalgo County
WASHINGTON: Cowlitz (Along I-5 as far south as Longview), Thurston, Benton, Franklin, Walla Walla Counties, and the Western half of Lewis County
WISCONSIN: Rusk and Sawyer (South of Rt. 70 & East of Rt. 40)
Counties
*Racine (Zip Codes 53402, 53403, 53405, and 53406)
VIRGINIA: Henry and Pittsylvania Counties
*DENOTES: Urban Areas Served by the Small Business Administration
Contact:
Clark Ray 202-720-5579