BUCKFIELD — A local lumber and building supply company has received more than $1.6 million in federal loan guarantees to purchase property and expand to Route 4 in Turner.

U.S. Department of Agriculture Rural Development State Director Virginia Manuel announced July 31 that R.E. Lowell Lumber Co., would receive the loan guarantees, made in partnership with Androscoggin Bank. 

R.E. Lowell Lumber is a family-owned company at 132 North Hill Road. It has been in operation since 1945, according to a new release from USDA.

“The assistance received through USDA Rural Development will allow R.E. Lowell Lumber to complete the real estate purchase of our second location at 2319 Auburn Road in Turner,” owner Rebecca Lowell said in a statement. 

The loans will allow the company to purchase buildings and real estate it is leasing at the former location of Moose Creek Log Homes in Turner, Kevin Swan, a Lowell Lumber representative, said Monday.

Swan said the company planned to add retail services, including paint, hardware and other building supplies to the full-scale lumberyard it has on the property. 

According to Swan the goal is to eventually have a full-service hardware store at the location.

The company is also planning to use one of the model homes as a showroom to display its materials like doors, windows and siding, Swan said. 

Although he expected the expansion would result in new jobs, Swan couldn’t say for sure how many people would eventually be hired. The company will, however, be making  two or three new hires “right off the cuff,” he explained.

“All at R.E. Lowell Lumber are excited about the business expansion as it will allow us to grow as a retailer, to serve a new customer base providing quality building materials and quality service, create new jobs, provide greater security for our existing positions and allow us to become more involved in the communities we serve,” Lowell said.

Contacted Monday, Lowell said the company had been working on the agreement with the bank and USDA for at least a year.