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Once in a while, he goes out and calls attention to the U.S. Department of Agriculture Rural Development program in order to educate a few people, said Gutknecht, a Rochester Republican who is running against Democratic challenger Tim Walz in the November election.
“Most people don’t know what it does,” he said.
Gutknecht and Steve Wenzel, the state director of rural development for the USDA, toured the Sno Pac frozen food plant in Caledonia, where they watched a dump truck load of organic green beans being trimmed and frozen for packaging.
Sno Pac owner Pete Gengler said a $400,000 no-interest loan from a Rural Development re-lending program saved his business and allowed it to expand.
“It was a sink or swim type of thing,” Gengler said.
In 1994, with 10 employees, Sno Pac was able to move into a new building with expanded equipment thanks to the loan. Today, it employs 30 full-time and 15 to 20 part-time workers.
The same year, the USDA awarded a $250,000 low-interest loan to the city of Caledonia, which the city used to create a revolving loan fund. That fund has been used to spur business development and has produced or saved 105 jobs in the area, according to the agency.
In total, the city has received $754,000 through the various rural development programs, including a 2002 loan to renovate its city hall and buy a fire truck and ambulance.
“For the most part, we get paid back on these (projects),” Gutknecht said. Some grants are made through the rural development programs but most of the funding goes for loans, he said.
Since 2000, the rural development program has invested about $3 billion in rural Minnesota — more than twice the national average, according to the agency.
Other examples of local funding through the programs include a St. Charles fire truck and Rushford fire department building.
After his Caledonia visit, Gutknecht headed off to Hokah for a check presentation at another funded project. Rural Development awarded a $995,000 loan and $459,000 grant for a new wastewater treatment system for the town.
Contact reporter David Krotz at dkrotz@winonadailynews.com or call (507) 453-3524.
re: Tool wrote on Aug 23, 2006 5:13 PM: