In Meeting, Schumer Pledged Assistance to Newton Falls Paper in Their Quest to Expand Operations in North Country; Expansion Could Create Up to 95 Jobs in New York

Press Release

Today, U.S. Senator Charles E. Schumer announced that he has pledged his full assistance and commitment to helping Newton Falls, a New York based paper company, to work with federal officials to access a federal program that would help company grow and create new jobs for New Yorkers.. Currently, Newton Falls has the opportunity to expand its operations but may be disqualified from vital federal aid due to the way the company's ownership share is structured.

" We need more jobs here in Northern New York and Newton Falls is a great company that could create jobs right here in the North Country, with access to the proper resources," Schumer said. "Federal dollars that are meant for economic development should be spent in a way that creates the greatest number of jobs in the United States. Since Newton Falls Paper will be spending every nickel right here in New York -- and creating jobs for New Yorkers -- I am urging USDA to craft a creative solution that finds a way to help the company expand its American operation."

Ordinarily, Newton Falls would be eligible for the United States Department of Agriculture's (USDA) Business and Industry Loan Program. The purpose of the B&I Guaranteed Loan Program is to improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities. This purpose is achieved by bolstering the existing private credit structure through the guarantee of quality loans which will provide lasting community benefits.

Newton Falls has gotten initial feedback from federal officials that it is currently ineligible for the program because a majority share of the company is owned by Canadian and Scotia Investments, and the program's current regulations state that a qualifying company must have a 51% U.S. ownership stake. Even though a majority of the company is owned by Canadian investors, the company is located in St. Lawrence County New York and employs approximately 120 people.

Allowing the company access to federal dollars would allow it to reduce its carbon footprint and expand operations by through the purchase of a cellulosic ethanol boiler to power machines. The company would spend every nickel in New York, and Schumer said he is pushing USDA to craft a creative solution that will green light the much needed economic development and jobs expansion that Newton Falls offers. The new boiler could create as many as 95 green jobs and retain 120 jobs, eliminate the need to burn 4,000,000 gallons of fuel oil, save $5,000,000 in oil and electricity costs per year, and reduce carbon footprint by 45,000 tons/year.

"In this environment, we should be in the business of finding a way to create good jobs for New Yorkers -- especially in rural areas like Northern New York that have been particularly hard hit by the economic downturn," said Schumer.

Last week, Schumer met with officials from Newton Falls and the Canadian government in order to learn more about the company's operations and how the federal government can work to ensure that it has the resources it needs to employ more people in New York. Schumer plans to contact the Secretary of the United State Department of Agriculture, Tom Vilsack, to explore how the company can participate in federal programs designed to grow jobs in the United States. Allowing Newton Falls to participate in the program will give the company access to necessary capital that it plans to use to expand operations and purchase energy efficient equipment that will help the company and reduce its carbon footprint.

Source