FOR IMMEDIATE RELEASE: December 6, 2010
SCHUMER ANNOUNCES: SALAMANCA COMPANY SET TO RECEIVE $1.2 MILLION IN FEDERALLY GUARANTEED LOAN FROM AGRICULTURE DEPARTMENT
Portion of Funds Will Be Used to Improve Company Balance Sheet Helping Cattaraugus County Business Grow
Federal Financing Will Help Company Substantially Reduce Energy Costs
Today, U.S. Senator Charles E. Schumer announced that Snyder Holdings Company Inc. and Snyder Manufacturing in Salamanca is set to receive a $1,200,000 million federally guaranteed low interest loan that will help the Cattaraugus County business improve its balance sheet and invest in clean energy that will reduce the business’ energy costs.
“Helping residents in the Southern Tier stretch their paycheck begins with making sure that businesses in the region have the access to credit they need to grow and invest in improvements that create jobs,” Schumer said. “With this loan guarantee, Snyder will be able to level off their balance sheet and invest in new technology, these are the seeds that will sprout jobs in Cattaraugus County.”
The $1,200,000 that the Snyder Company is set to receive will come in the form of a federally guaranteed low interest loan. The program, the Business and Industry Guaranteed Loans Program (B&I), is run by the U.S. Department of Agriculture (USDA), and is awarded on a competitive basis to businesses in rural communities that present a plan to improve regional economies through business growth. Once the guaranteed loan is awarded the interest rate is set after negotiations between the lender and the company. The rate can either be fixed or variable and must undergo final approval by the USDA. Because the loan is federally guaranteed a business like the Snyder Company is likely to receive a very favorable rate.
Snyder Manufacturing is located on Rochester Street in Salamanca and produces pellet stoves, screwdrivers and transmission parts for General Motors transmissions. The company plans to use $1 million of the loan to improve its balance sheet thereby creating the conditions for the type of robust business growth that can create jobs. $200,000 of the federal financing will be used to install a geothermal heating system which will soon provide all heating needs for the plant and substantially reduce their electricity bills.