Text of Senator Charles Schumer's Letter to Ann Veneman, U.S. Department of Agriculture
Dear Secretary Veneman:
I am writing in support of Thruway Travel Centers, LLC's request for reconsideration of the USDA Rural Development Office's decision to substantially weaken a much-needed loan guarantee for the proposed Petrol Stopping Center in Seneca County, New York.
It is my understanding that Thruway Travel Centers, LLC, recently submitted a proposal to USDA Rural Development for a $10 million Business and Industry Guaranteed Loan. The proposal was approved by both the Bath, NY and Syracuse, NY offices and later referred to the national office for final approval. Upon evaluation, the original request for an 80% loan guarantee was rejected and the national office recommended a 70% loan guarantee, to be issued only after completion of the first year of business.
It is essential that Thruway Travel Centers, LLC receives the original 80% guarantee as requested. The 70% guarantee recommended by the USDA Rural Development office is not sufficient to attract financing for this project given the start-up nature of the business and the current economy. In fact, M&T Bank responded in a letter to USDA that "...without this level of guaranty (80%), the bank is unable to move forward on this project." Clearly, if USDA does not reverse this decision, the Petrol Stopping Center, which has received strong support from state and local officials, will be unable to secure the financing it needs to proceed.
This project is vitally important to Seneca County. The Petrol Stopping Center will create an estimated 200 new jobs, increase the potential for future commercial development in the area, and bring local government additional revenues at a time when taxpayers desperately need a boost. In short, the risk to USDA is small, while the benefit for the people of Seneca County is large.
I urge your approval of an 80% guarantee and removal of the one-year delay. Thank you for your attention to this matter of great importance to the people of the Finger Lakes region. I look forward to your response.
Sincerely,
Charles E. Schumer
U.S. Senator