(Archived Content)
The Treasury Department announced Friday a $150,000 disbursement by the North American Development Bank's Community Adjustment and Investment Program (CAIP).
The disbursement is part of the CAIP's $500,000 direct loan to the California Coastal Rural Development Corporation (CCRDC) and was used to secure a USDA loan for Pajaro Valley Greenhouses (PVGH). PVGH, one of the largest commercial rose growers in the country, will use the loan to help repair and expand its flood damaged operations, enabling it to remain competitive amidst the growing challenge from imported cut flower producers.
Through the CAIP, the NADBank provided the CCRDC, a not-for-profit small business and farm lender, with a line of credit necessary to become a USDA-certified Business and Industry Loan Guarantee Program lender. With additional money from the USDA, the CCRDC will expand its support of rural business lending to the Watsonville, California, area. The loan to PVGH, the first made under this arrangement, helps secure the jobs of more than 100 employees in the region.
The Community Adjustment and Investment Program encourages and fosters economic opportunities within communities that have experienced job losses related to implementation of the North American Free Trade Agreement. It works through the coordinated efforts of the U.S. Government and the NADBank providing financing to business communities with job displacement and few existing employment opportunities. To date, the program has financed more than $83 million to 123 private sector businesses.
The NADBank is an international financial institution jointly capitalized and governed by the United States and Mexico to finance environmental projects along the U.S./Mexico border and to provide financial assistance for domestic community adjustment and investment in both countries. Approximately 10 percent of the U.S. contribution to the NADBank is earmarked for domestic needs which are addressed by the CAIP.