USDA Rural Development Awards $605,000 Loan/Grant to Southwest Initiative Foundation
Funds will assist rural microentrepreneurs, provide technical assistance
USDA Rural Development State Director Colleen Landkamer visited Hutchinson Thursday, March 17, to award the Southwest Initiative Foundation a $500,000 loan and a $105,000 grant.
The funds come from Rural Development’s Rural Microentrepreneur Assistance Program (RMAP) and will assist rural entrepreneurs. It is the first RMAP awarded in Minnesota.
“These funds will help small, start-up businesses access needed capital,” Landkamer said. “Sometimes a small loan is all an entrepreneur needs to start a business, produce a product, and win the future. The Southwest Initiative Foundation has a strong track record in assisting rural businesses and I am looking forward to watching the positive results develop from this funding.”
Under the RMAP program, funds are provided to an intermediary who re-lends the dollars to rural entrepreneurs and microenterprises. In this case, the Southwest Initiative Foundation will use the $500,000 loan for re-lending purposes and the $105,000 grant to provide technical assistance and training to rural entrepreneurs in the region.
“Our region has a very strong entrepreneurial spirit,” said Southwest Initiative Foundation President/CEO Sherry Ristau. “When combined with the right resources, including technical assistance at various stages of their business ventures, we’ve seen entrepreneurs accomplish great things for our communities, region and economy.”
Contact Southwest Initiative Foundation at 800-594-9480 or loans@swifoundation.org to inquire about business loan opportunities. To learn more about Rural Development programs in the areas of business, housing and infrastructure, contact the Cambridge area office at (763) 689-3354, ext. 4.
Photo caption: Southwest Initiative Foundation received the first RMAP awarded in the state to support southwest Minnesota microentrepreneurs. Pictured from left are foundation staff Jackie Turner-Lovsness, Greg Jodzio, Berny Berger, Kurt Thompson, USDA Rural Development State Director Colleen Landkamer, Karen Larson and foundation President/CEO Sherry Ristau.
The Trajectory of an Entrepreneur, Statistically Speaking
In a down economy, who could possibly be willing to start up a business? The answer may surprise you.
Perhaps it is people that have experienced a layoff, and despite hard work just can’t find another position that meets their needs. Or maybe they have a little money set aside, strong skills developed through years of work experience and they see an opportunity before them now to branch out on their own.
Contrary to common thinking, just as many businesses are started during recessionary times as during good economic times (statistics taken from a recent study by the Federal Reserve Midwest region). Long-term viability of businesses are also similar, from either starting point. Starting a business during a recession if the project idea is right may be just what is needed to help renew the local economy!
Out of curiosity, we looked to our own SWIF microloan program statistics to analyze the numbers of unemployed that received loans from us since July 1, 2009. Here’s what we found:
- Since that date, SWIF has made 30 microloans (small loans under $35,000).
- Nine of those loans were to people that had lost their jobs during the recession (almost 30 percent).
- Historically, 60 percent of our microloan portfolio has been comprised of women but since the recession started our portfolio has become an even split between men and women.
As the recession has moved through most industries, it is clear that the market has made many decisions for people while at the same time opened up new opportunities.
Passion, experience and capacity are still the most important factors that are needed to make a new business venture successful for the long haul. The opportunity comes when people are forced to look at their career and realize that things will most definitely change over time. Owning your own business is clearly not for everyone. But, if the opportunity is right and you have the skills and capacity this could be the time to take the plunge.
Berny Berger is the Southwest Initiative Foundation’s Microenterprise Program Coordinator. She started SWIF’s microloan Program in 2001 and has been active in both state and national organizations focused on building entrepreneurship in rural areas.
photo credit: Banalities
