WASHINGTON - Sen. Charles E. Schumer will ask Agriculture Secretary Tom Vilsack to help see that Newton Falls Fine Paper receives a loan guarantee from the Agriculture Department, working around a snafu tied to the company's Canadian ownership.

Newton Falls applied for the loan guarantee through the USDA's Business and Industry Loan program. It plans to use the money to buy a cellulosic ethanol boiler, which would reduce the plant's carbon footprint.

An initial review at the USDA indicated that Newton Falls would not be eligible, despite having a good chance at winning a $2.9 million loan guarantee, Mr. Schumer's office reported.

Officials at the Agriculture Department cited the company's majority ownership by Canadian and Scotia Investments, meaning it does not meet a requirement that the recipient be at least 51 percent U.S. owned.

Mr. Schumer, after meeting with Newton falls representatives and Canadian officials last week, said he would ask Mr. Vilsack next week to ask for "creative solution" to make Newton Falls eligible. He expects to meet with Mr. Vilsack next week, said Mr. Schumer's spokesman, Maxwell Young.

Although the company has Canadian ownership, Mr. Schumer's office makes the case that it is a major employer in St. Lawrence County, with about 120 workers.

The Senator is counting on the fine print in USDA programs that would give Mr. Vilsack some flexibility in determining an applicant's eligibility.

"We need more jobs here in Northern New York and Newton Falls is a great company that would create jobs right here in the North Country, with access to the proper resources," mr. Schumer said in a press release.