One of the highlights of my role as Associate Administrator for International Trade at the U.S. Small Business Administration (SBA) is hearing how our programs positively impact businesses and communities. I recently came across a particularly inspiring story.
This story is all about perseverance—how the right mix of resources, timing, and determination can create opportunities and bring optimism, even when the odds seem against you.
The Delta Region of Louisiana, Arkansas, and Mississippi has faced significant challenges, such as high unemployment, seasonal flooding, and foreign competition impacting the agricultural sector.
In the early 2000s, Fruit of the Loom built a massive 900,000 square foot facility in Vidalia, Louisiana, with the promise of hundreds of well-paying jobs for the region. They also provided extensive job training to residents while the facility was under construction. However, shortly after finishing the building, Fruit of the Loom moved operations to Mexico for cheaper labor, leaving the facility unused and the keys handed back to Vidalia.
The facility remained empty, symbolizing tough times until Dan Feibus, a veteran in the textile business and former CEO of textile manufacturer Zagis USA, saw an opportunity. Feibus developed a denim manufacturing project, leveraging the resources available in the region, with the vacant Vidalia building as the focal point.
Vidalia is centrally located in the U.S. cotton-producing area, so all the cotton needed for denim production could be sourced within 200 miles. The indigo required for dyeing jeans could also be locally sourced. Plus, there was already a trained workforce in the area thanks to Fruit of the Loom.
Feibus launched Vidalia Industrial Facilities (VIF) and collaborated with the United States Department of Agriculture (USDA) for a Business and Industry Loan Guarantee. These loans support commercial enterprise development in rural towns with populations under 50,000. A $25 million building and equipment loan, with a 60% guarantee, was secured through Greater Nevada Credit Union, along with a $5 million SBA International Trade Loan (ITL) for working capital. The SBA ITL program helps small business owners finance their fixed assets and working capital, offering private lenders a 90% guarantee to increase access to capital.
Additionally, VIF received an $8 million job payment grant from Vidalia to support the project. With the borrower injecting $15 million in equity, this $53 million project is set to provide over 300 jobs immediately. Once operating at full capacity, VIF expects to add another 250 jobs, offering wages of over $13 per hour, making VIF the largest employer and only textile mill in Concordia Parish.
VIF will spin cotton into yarn, add LYCRA® for elasticity, and weave it into stretch denim for jeans sold to companies like Wrangler and high-end brands. Currently, only 2% of jeans sold in the U.S. are domestically made, with most jeans produced in countries like Mexico, Tunisia, China, Turkey, and Vietnam. The potential increase in domestic jean production is exciting, especially with the expectation that over 20% of VIF’s products will be sold internationally.
Thanks to a blend of federal and local resources, private investment, and entrepreneurial spirit, Vidalia, Louisiana, is set to become one of the largest blue jean manufacturers in the U.S. The SBA is proud to be part of such a remarkable American Dream story in action.
