Pekin now qualifies for new USDA rural development loans and grant funding. A change in the farm bill allows larger populations cities like Pekin to apply. Dwight Reynolds is with the USDA. He says the funding can help cities, business owners, and individuals get better loan terms and lower interest rates:
“With a government guarantee, it’s possible to go as long as a 30-year term, and we have actually done 30-year-term guarantees on a fixed rate. So if a business is looking to help stabilize their cash flow and have a long-term fixed-rate interest rate, this is a possibility.”
Reynolds says cities could also apply for funding to start a revolving loan fund or a business incubator. Last year Illinois received $22 million from various USDA business programs.