City, firm complete rural economic development loan
$1?M loan on behalf of Mary Ann’s Specialty Foods to assist with new equipment and business expansion
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Officials with the City of Webster City have announced the completion of the USDA Rural Economic Development Loan to Mary Ann's Specialty Foods of Webster City.
In February 2016, the City Council of Webster City Approved a resolution authorizing the City's application to the U.S. Department of Agriculture Rural Economic Development Loan and Grant program for a loan in the amount of $1 million on behalf of Mary Ann's Specialty Foods. The funds will be used to purchase equipment as part of the business' expansion project.
Mary Ann's Specialty Foods was established more than 50 years ago in Klemme by William Korleski. In 1993, Korleski moved the facility to Webster City in order to expand the meat processing capabilities in a larger facility.
Mary Ann's employs 182 full-time employees and has the capacity to produce several hundred thousand pounds of product a week, according to officials. The company produces products under their own Kor-Bert branded products, nationally recognized brands, and private label award-winning meats for customers across the U.S. The company sells to retail, food service and wholesale operations, company officials said.
The City of Webster City had previously assisted the company with a $500,000 loan from the Economic Development Revolving Fund back in February 2016. City officials said they were notified of the Rural Economic Development Loan award earlier this year and finalized the closing and execution of the loan document on Thursday, Dec. 7. The funds will assist Mary Ann's Specialty Foods with purchasing new equipment and their comprehensive expansion projet to improve productivity, timeliness, reliability and quality of their project.
The ability for the City to apply for and receive such funds is made possible by the City of Webster City's electric utility. The USDA's Rural Economic Development Loan and Grant programs provide financing to eligible Rural Utilities Service electric or telecommunications borrowers to promote rural economic development and job creation projects. The loan program provides zero interest loans to local utilities which they pass through to local businesses for project that will create and retain employment in rural areas. The ultimate recipients repay the lending utility directly. The utility is responsible for repayment to the agency.