While small claims cases against Singleteary Food Solutions trickle into conciliation court in Faribault County, the federal government may stand to lose millions.
The Register has learned the USDA is backing two loans from a private lender.
Justin DeJong of the USDA Office of Communications, says one loan was for $1.65 million for working capital and the other totaled $2.712 million to purchase equipment.
DeJong says the federal agency provided the lender with a 90 percent loan guarantee.
"We are continuing to work with the lender to explore all available options to avoid loss," he adds.
Information of Singleteary Food receiving the loans was obtained from an independent, non-profit newsroom that investigates issues and stories in the public's interest
According to the website, two loans were issued in April of 2010 and the other in December of that year.
The money reportedly is part of "stimulus funds" the USDA dispersed to Faribault County totaling more than $13.268 million.
The organization's website also indicates Singleteary received a $3.627 million loan from the SBA.
Carol Wilkerson, communications director for the agency representing Illinois, Indiana, Michigan, Ohio, Wisconsin and Minnesota, says the full amount was issued to Singleteary and the loan is 90 percent guaranteed like the other two.
Meanwhile, another local business is going to district court in hopes of collecting a debt.The owners of B & D Metal Works Inc. in Wells are seeking $4,498, plus a $75 court filing fee.
Brett Niebuhr says he didn't want to make any comment until the hearing is held.
A court appearance was scheduled for Jan. 22, but that was postponed and will be rescheduled.
Court papers show B & D provided steel and equipment modification that was customized for the facility and existing equipment.
A note in the file dated Dec. 14 says the defendant, Singleteary Food, has refused accepting certified mail.