Local company receives major USDA loan

A Kinston-based company learned Thursday that it has been approved for a $750,000 grant to aid economic development in Eastern North Carolina.

East Carolina Development Company, Inc. headed by Stephen LaRoque, will receive its ninth consecutive loan from the United States Department of Agriculture’s Rural Development Intermediary Relending Program. East Carolina Development Company is one of nine companies nationwide to receive one of the loans.

“The investments that I am announcing today will help to provide greater economic opportunity in rural America,” Agriculture Secretary Michael Johanns said. “Theses funds will create or save nearly 1,600 jobs (nationwide), helping to retain community residents, attract newcomers and encourage entrepreneurship.”

The business revolving loan funds are for financing business facilities and community development projects in rural areas. This is achieved through loans made to intermediaries who in turn re-lend funds locally to support businesses or community development. Loans from intermediaries to the recipients must be used to establish new businesses, expand existing businesses, create employment opportunities, save jobs or complete community development projects, the USDA said.

“We’ve gotten a loan every year so far that we’ve applied,” LaRoque said. “We’ve received around $6 million since 1998. We cover 11 counties in Eastern North Carolina and work with emerging and expanding small businesses.”

East Carolina Development has made 71 loans since 1998 and helped create or retain 704 jobs with total project costs of $14.9 million. The company makes loans of $25,000 to $250,000 to businesses ranging from farming to retail to manufacturing.

“The only thing we don’t do is adult establishments … and bars,” LaRoque said.

The revolving loan fund is true economic development, he said. Loans are repaid and neither state nor local governments have to give economic incentives for a business to grow.

“This doesn’t cost the taxpayer anything,” LaRoque, a former banker, said. “We’re not giving away free money. The businesses pay all their taxes, they hire new employees, the people go to work and work 60 hours a week to make a profit and support their families. This is the backbone of the economy.”