They are from the federal government -- and they are here to help you.
Two Ballico businesses are getting help from the American Recovery and Reinvestment Act and rural development funds.
Golden By-Products Inc. and Ag Link Inc. were awarded loans worth a total of more than $2 million, which will help keep 85 employees on the job and create 10 new jobs.
Merced Sun-Star - Rep. Dennis Cardoza, D-Merced, right, announced federally backed loans to two Ballico businesses Tuesday morning. Cardoza was joined by Merced County Supervisor Deidre Kelsey, left, and Glenda Humiston, the U.S. Department of Agriculture director.
Golden By-Products got $1.55 million of the loan money, and Ag Link received $650,000.
Rep. Dennis Cardoza, D-Merced, announced the loans at the Merced County administration building Tuesday morning. The loans are through Premier Valley Bank in Modesto and are guaranteed by the federal government.
"This is significant," Cardoza said, addressing a small group of local residents and officials. "This type of action can help bring the Valley back from the brink of economic disaster."
The two companies recycle tires, chipping the tires into small pieces and then turning them into mats that can be used on agricultural operations, especially dairies.
Michael Marsh, chief executive officer of Western United Dairymen, said keeping the two businesses going is important to the county and to the dairy industry.
"These mats are important for cattle," Marsh said. "They keep the cows from slipping and possibly breaking bones."
Cardoza said originally the two companies had loans that needed to be refinanced, but about 20 banks in the area turned them down.
"Premier Valley Bank stepped up and is allowing the businesses to remain in Ballico," Cardoza said. The companies pay about $13 an hour on average per employee.
Cardoza said loans like the ones given to the two companies will also help deal with the problem of old tires.
"No one wants another Westley tire fire where tires burned uncontrolled for a long time," Cardoza said. In September, 1999, lightning struck a scrap tire business in Westley, and 7 million tires burned for more than 30 months.
Deidre Kelsey, Merced County supervisor for District 4, said the two businesses started from family operations and she's pleased they are able to expand and prosper, especially in a depressed economy.
Cardoza said access to loans is important to small businesses, and a lot of institutions in the Valley haven't stepped up to help.
"We need more investment to help pull ourselves out of the economic quagmire we're in," Cardoza said.
Reporter Carol Reiter can reached at (209) 385-2486 or creiter@mercedsun-star.com.
Tuesdays press conference with Congressman Dennis Cardoza
Jana Nairn of Golden By-Products explains how the company turns old tires into playground materials and dairy mats.
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