Southern Indiana Business Report
BEDFORD – Radius Indiana delivered a low interest loan from its Intermediary Relending Program (IRP) to Cornerstone Farms in Salem in January to assist in the arrival of E&H Tubing in a refurbished Salem facility. Cornerstone is the owner of the former Childcraft facility where E&H is expanding its operations as a leading mechanical tube mill.
The funds from the Radius loan are part of the financing that is enabling the facility to be refitted to accommodate the equipment and employment E&H is bringing to Salem as it expands beyond its primary facility in Brownstown.
“We are grateful for this assistance from Radius, which helps us complete the financing we needed for this building renovation. The Radius loan program’s affordable terms made this project feasible, and we’re pleased that E&H chose Salem as the site for their growth,” said Aaron Lee of Cornerstone Family Farms, owner of the building E&H has moved into in Salem.
Radius’s loan program is a product of the United States Department of Agriculture’s Rural Development program. The USDA provides funds to Radius that are then lent to businesses in Radius’s service area to promote economic growth. Radius must repay the full amount of the Intermediary Relending Program funds it receives from the USDA.
Any earnings Radius receives from the loan program must remain in a permanent revolving loan program that can be used to further assist business growth through additional loans. Radius is the only organization in Indiana with experience using the IRP.
“This Rural Development investment will be used to support the established revolving loan fund operated by Radius. Radius has been serving nine counties in Southern Indiana since 2009. Many of these counties include very small communities that likely would struggle to fund significant projects or improvements without funding support from this subsequent Intermediary Relending Program loan,” said Steven Howell, USDA Rural Development Director for Indiana. “This project will support local communities through the development of programs to help entrepreneurs, start-ups and existing businesses succeed and grow in the region. Radius works to increase employment, investment, and quality of life within the region. As a result of this project 12 jobs will be created and 191 jobs will be saved.
Radius was made aware of the need for the Childcraft building to be rehabilitated through communications with the Washington County Economic Growth Partnership.
“We are grateful to Radius Indiana for their continued investment in Washington County and their support of projects that strengthen our local economy. This funding will assist with additional building renovations and help support the continued growth of E&H Tubing. Partnerships like this encourage reinvestment and help position our community for long-term success,” said Ashley Conrad, Executive Director of the Partnership.
“This project is a great example of the value of a team working together, Cornerstone, the Partnership, the City of Salem, and Radius all saw the need to collaborate to make this a success, and we know that everyone will benefit from this growth by the company,” said Jeff Quyle, President of Radius.