WASHINGTON – The U.S. Department of Agriculture’s rural development program has awarded a business and industry guaranteed loan of $250,000 to the Peavey Manufacturing Co. in Eddington. The funds will be used to refinance existing debt and provide permanent working capital.

“For over 140 years, the Peavey Manufacturing Co. has proudly served Maine’s timber industry by producing quality logging tools, handles and dowels,” Sens. Olympia Snowe and Susan Collins said Wednesday in a joint statement. “Now we are proud to announce that the Peavey Manufacturing Co. will continue enhancing Maine’s economy and history through this generous loan on behalf of the USDA and the Machias Savings Bank.”

The USDA Rural Development Business and Guaranteed Loan Program works with private sector credit lenders to provide financial assistance to rural businesses across the country. Machias Savings Bank will fund the Peavey Manufacturing project, which is expected to create three jobs for the company.