Venture North Funding & Development received a $279,595 funding commitment from the U.S. Department of Agriculture Thursday to expand its local lending program.

The USDA funds are in the form of a one-percent loan with a 30-year payback period. Venture North will re-lend the funds to northern Michigan businesses in the 10-county region through its Intermediary Relending Program (IRP). The financing program can be used for working capital, product line expansions, market diversification, machinery and equipment financing, and other related business needs. To receive the funds, Venture North pledged an additional commitment of $54,000 in existing funds to the program.

The loan is the second major commitment from the USDA to Venture North's IRP program. The department also contributed $400,000 in 2013 to help launch the program. The IRP has been one of Venture North's most active lending programs, with 12 loans totaling more than $530,000 going to local small businesses including food producers, hops farms, auto service garages, food trucks, outdoor apparel stores and equipment retailers. As loans are repaid, the proceeds go into a revolving fund and are available to loan out to other businesses.

Venture North is a division of TraverseCONNECT, a regional economic development corporation that includes the Traverse City Area Chamber of Commerce.