Thursday, April 16, 2026
U.S. Department of Agriculture Rural Development’s Rural Business-Cooperative Service Administrator J.R. Claeys has announced $115.2 million in funding across eight states through the Timber Production and Expansion Guaranteed Loan Program (TPEP). The initiative is designed to help sawmills and wood processing facilities establish, reopen, expand, or enhance their operations. As part of this funding, Maine Plywood USA LLC will receive $11.9 million in loan guarantees to support its operations in Bingham, Maine.
This Rural Development investment will support long-term financing for Maine Plywood USA LLC to transform an existing sawmill and wood manufacturing site in Bingham into a plywood underlayment facility. The funding will cover construction, renovation, equipment purchases, debt refinancing, inventory, and working capital needs.
Backed by two loans totaling $11.9 million through the Timber Production and Expansion Guaranteed Loan Program, and complemented by over $2.2 million in owner and investor equity, the project is expected to produce 2.5 million sheets of plywood underlayment in its first full year of stable operations. It is also projected to generate approximately 95 new jobs in the region.
John Butera, state director, USDA Rural Development Maine said “This investment reflects the USDA’s and Trump administration’s commitment to investing in our natural resource industries in rural America. In Maine, the forest products industry has a long tradition of strengthening our local economies. This support for a Maine timber business is anticipated to create economic prosperity and jobs in rural Maine.”
“The value of National Forest Systems lands is demonstrated by providing various forest products, such as timber, lumber, paper, bioenergy, and other wood products,” said U.S. Forest Service Chief Tom Schultz. “The American forest products industry is critical to maintaining the health of the nation’s forests. The Timber Production and Expansion Guaranteed Loan Program is one of many ways the Forest Service partners with the timber industry to maintain rural jobs, processing facilities, and an outlet for wood that needs to be removed from national forests.” Mr. Schultz added further.
The Timber Production Expansion Guaranteed Loan Program is a joint initiative of the U.S. Department of Agriculture Rural Development and the U.S. Forest Service. It aims to combat the growing wildfire crisis by supporting local sawmills that help remove hazardous forest fuels, reducing immediate risks to communities, infrastructure, and natural resources.
Available through qualified lenders, the program provides financing support to businesses seeking to establish, reopen, expand, or enhance sawmills and wood processing facilities that utilize materials generated from ecosystem restoration activities on National Forest System lands.
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Tags: plywood, sawmill, timber industry, USDA, wood processing, woodworking
