EDA encouraged to focus on existing businesses BY JAMES JACENICH • STAFF WRITER
MONTEREY - "You need to focus on existing business," said Kent Ware, director, rural business services, USDA Rural Development. He was guest speaker at the monthly meeting of the Highland County Economic Development Authority Tuesday.
Ware is not only Rural Development's rural business services director for Virginia, he is a Highland County resident. He lives on a sheep farm north of Williamsville with his wife and two teenagers.
Ware said Rural Development was the single largest provider of financial assistance in rural Virginia. "Last year we made over $230,000,000 of investments in rural Virginia," he said.
"We are committed to the future of rural communities," said Ware. "Quality of life and economic development go hand in hand. It's hard to have quality of life unless you have jobs nearby."
Rural Development provides financial assistance for housing, business, rural government, farmer's markets, renewable energy, museums, medical facilities, and business incubators, among other things.
In Highland County, Rural Development helped get the town of Monterey a low-cost loan for its sewer treatment plant upgrade and also provided a loan to the Highland Museum and Heritage Center.
Ware gave some examples of how Rural Development has helped other rural communities.
Rural Development helped finance the Lake Country Advance Knowledge Center, which is operated by Southside Community College by contract. It was built in response to the need of businesses for a place to train employees.
The Carroll County Business Development Program was started in 2006 in response to large job losses in 2005 due to the loss of the textile industry. "They were going to concentrate on aiding the smaller businesses," said Ware.
Its goal for 2006 was to work with 100 small businesses to find ways to get loans. The Carroll County Business Development Program helped those businesses get $3.6 million and added 90 jobs.
Crossroads Institute in Galax is similar to Lake Country, said Ware. It is a business incubator and training center. Seven counties and towns are involved with this regional project.
Carroll County Farmer's market was built with the help of Rural Development. The market does $1 million in sales annually.
Rural Development assisted the Wythe County Wellness Center, which the county uses to attract potential employers.
Another quality of life improvement that appeals to potential employers is a physical therapy and exercise facility built in Shenandoah County with money borrowed through Rural Development.
Rural Development also assists with rural tourism initiatives like the The Carter Family Fold, a theater in Hiltons that specializes in old time music and honors the original Carter Family. It is also part of the Crooked Road: Virginia's Heritage Music Trail, which attracts tourist dollars to Southwest Virginia.
Rural Development provides loan guarantees to businesses, too. It helped Smyth County Machine and Welding in Atkins buy a $5 million linear transfer system that allows it to supply essential equipment to the heavy trucking industry. Smyth County Machine and Welding started as a one-man operation in 1977 in a garage that has grown to a 50,000 square foot facility with more than 50 employees.
The Mt. Jackson Town Hall was built with Department of Transportation and Rural Development money. "It's a nice facility that attracts people to town," said Ware.
Rural Development provided the Virginia Poultry Growers' Association $8 million recently, said Ware.
These are different ways communities market themselves and make use of Rural Development loans and grants, Ware said.
Guaranteed loans start at a minimum of $500,000, however. Smaller loans need to go through the Small Business Administration.
Ware says the recent interest in ethanol production in Virginia has been dampened by studies that show the technology to convert switch grass and other plants to fuel is still years away.
He said putting up shell buildings to attract business to the county might not be the best use of county resources. "We are seeing less and less shell buildings being built," said Ware. "If you are willing to wait 4-5 years to be occupied, you may want a shell building."
Ware advised authority members to work with what the county already.
"It is difficult," said Ware. "You have to build on your assets. You won't be able to attract a significant sized industrial manufacturing facility. Maybe you can attract a 3-5-person facility. Make the county as attractive as you can for small home-based businesses with three or four employees - perhaps an Internet business or finance business run out of the house. And provide the amenities people are looking for."
Russell County had an opportunity for 300-400 new jobs from one company. "They are having trouble attracting the right people to the county," said Ware. "They don't have the amenities the employees are looking for.
"There were only 2-3 qualified applicants for those jobs in the county, and (it appears) they'll never be able to attract people to the jobs.Ó"
Highland County needs to be aware of its limitations, too, said Ware.
"Transportation and possibly the lack of skilled employees are impediments to development in Highland County," he said.
"Maybe if we have existing businesses that want to expand or add a few employees, maybe we could go to you to get assistance to help them," said authority member David Smith.
"You are exactly right. You need to focus on existing business," said Ware.
Ware also recommended the county upgrade communications services in the county because it is integral to attracting small, home based-businesses.
He suggested the authority ask former residents of the county what they need to come back to Highland. "What kind of amenities would they like to have?" said Ware. "You might not be able to get them all, but you can tick them off one at a time."
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