WELLSBORO - Dallas Tonsager, U.S. under secretary in charged of rural development, said Tuesday that the Tioga County Development Corp. will receive a $99,900 grant as part of the Rural Business Enterprise Grant program.
According to Tonsager, 60 grants totaling $2.5 billion that will benefit projects in 45 states, the western Pacific region and Puerto Rico.
TCDC's portion, the result of a competitive grant process, will help the agency create up to 10 jobs and assistance to four businesses in the form of revolving loans of $25,000, said Executive Director and CEO Robert Blair.
"This will increase our small business loan portfolio so we can lend out more money," Blair said.
The revolving loan fund is used to provide more low interest loans to small businesses, particularly those related to the rapidly developing energy and natural gas industry.
"With the Marcellus Shale play going on we would like to assist in that industry. We just closed on a loan for a local welding operation recently. Or, for example, it could be a shoe store wanting to increase its line of steel-toed shoes, or anyone providing a service to the gas industry," he said.
The loans are matching, with the other half coming from the applicant or local banks, Blair said.
"We will probably do four revolving loans at $25,000 each and that will be matched by private funds," he said.
Blair said with the funds, TCDC is looking for businesses to lend money to.
"We have money and would like to lend it out, so we encourage any small business in Tioga County looking to grow or expand to contact us," he said.
Anyone wishing to apply can contact TCDC through its website www.tcdc-pa.com or call Blair at 723-8232.
Tonsager said the types of jobs created will vary, depending on the project, but jobs and businesses involved in food service, processing and other more technical jobs pertaining to the oil and gas industry are possible.
"Across the board, there will be a wide variety of job creation," Tonsager said.
"This program is expected to create up to 1,500 jobs and save 1,000 additional jobs," he added. Tonsager said the program will provide the "opportunity to create local jobs in times of economic challenge."
"We have seen them have dramatic effect in small communities by creating 25 or more jobs, which makes a real difference in a real way to a rural community," he said.
Projects cited by Tonsager include rural broadband access to the Internet and others will receive assistance with water and sewer projects.
