The U.S. Department of Agriculture is putting $80 million on the table to back timber operations in Nevada and Oregon, a move pitched as a double win for forest health and rural paychecks. The guaranteed loans are split between a new Tahoe-area sawmill project and an Oregon manufacturing expansion, with the money earmarked for new equipment and construction-to-permanent work at the mills. Local officials say the financing should help create jobs while giving loggers a steady buyer for material pulled out during hazardous-fuels treatments and wildfire salvage.
According to Action News Now, the package includes a $50 million loan guarantee for Tahoe Forest Products LLC and a $30 million guarantee for Clatskanie Scion LLC. The support comes through federal programs that back private lending for sawmills and other wood-processing facilities.
What’s Being Built in Carson City
Tahoe Forest Products describes its planned Carson City operation as a hub for processing salvage and thinning timber from the Sierra Nevada into dry, dimension lumber and other finished wood products as the plant ramps up. Company materials outline plans for new kilns, a planer mill and a saw line that would position the facility to serve retail distributors and large-scale construction markets, while also providing a local outlet for fuel-reduction and post-fire timber that might otherwise have trouble finding a buyer.
Clatskanie Expansion in Columbia County
On the Oregon side, Clatskanie Scion LLC intends to use its $30 million guarantee to expand operations for Myers Woodline and increase production of industrial lumber products in and around Clatskanie, Oregon. Federal award records list the company and the full loan value, according to USAspending, which shows the project is aimed at boosting local wood-processing capacity.
How the Loan Programs Work
The financing runs through USDA programs that guarantee lender backing for facilities that establish, reopen, expand or upgrade sawmills and related wood-processing sites. The Timber Production Expansion Guaranteed Loan Program and USDA’s Business and Industry loan guarantees are designed to support exactly these kinds of projects, with program materials and a running project list detailing earlier awards and how the guarantees are supposed to connect mills with material generated by forest restoration work.
As of March 23, 2026, the program’s project list showed roughly $115.2 million in guaranteed loans, with this latest $80 million poised to push overall guaranteed support even higher. Program details and past awards are laid out by USDA Rural Development in its general information and in its project list for the Timber Production Expansion Guaranteed Loan Program, also published by USDA Rural Development.
Officials: Jobs and Forest Health
In a statement included in coverage of the announcement, USDA Secretary Brooke L. Rollins said the investments "will help strengthen America's timber industry, support jobs in rural communities, and expand the capacity we need to actively manage our forests," with USDA Rural Development leaders framing the awards as targeted support for sustainable timber management. Action News Now reports that agency officials expect the two projects to create at least 35 jobs.
Industry advocates argue the new guarantees will help build local markets for trees removed during hazardous-fuels treatments and post-fire salvage operations, which could reduce wildfire risk while keeping rural manufacturing alive. The exact timing for when the new capacity comes online will depend on permitting, hiring and equipment deliveries, but company and federal materials indicate that planning and site work are already under way.
