Rural Community Development

NCED launches a new revolving loan fund

In 2010 the Nevada Commission on Economic Development set aside $175,000 from its annual allocation from the US Department of Housing and Urban Development (HUD), to the Community Development Block Grant Program (CDBG), to establish the new Rural Economic Development Fund (REDF).  Further amounts will be set aside for capitalization of the fund over subsequent years.  Lyon County agreed to sponsor the REDF and have contracted the Rural Nevada Development Corporation (RNDC) of Ely to manage the establishment and implementation of the REDF.

The Rural Economic Development Fund is intended to provide a much-needed source of credit (loans) to small existing or emerging businesses in rural Nevada. REDF funds will not be available to businesses located in Clark County, Reno, Sparks and Carson City.

Last week, on Monday June 20, the RNDC Loan Committee approved the first loan from the REDF. The committee heard and approved an application from the Jerky Junction, a small meat processing operation in Moundhouse, Lyon County for $50,000 in working capital assistance. The loan will be used to buy and process additional stocks of meat thereby increasing the output of finished product.

Jerky Junction produces a high quality, gourmet line of beef, buffalo, elk, pork and fish jerky. Currently its products are being sold in 23 states including Hawaii and Guam. Demand exceeds supply hence the need for a working capital loan to increase inventory. The company owner, who has been in the food industry since 1970, has been in contact with Costco and they are interested in purchasing product for sale in the San Francisco Bay Area. A national sporting goods chain (REI) with 130 stores across the country, has also offered a marketing contract for the salmon and Ahi jerky products.

Jerky Junction does all its own processing, packaging and shipping from the Moundhouse location. The company employs 6 people at present, and plans to add 4 more with this loan.  The company uses Nevada companies for its beef, bags and spices.

This loan is a great start to the REDF program and RNDC staff believe they will be able to lend out the rest of the REDF funds within the calendar year.