USDA Rural Economic Development Loan & Grant Program
The USDA Rural Economic Development Loan & Grant Program provides zero-interest loans and grants to Rural Utilities Service borrowers to promote rural economic development and job creation projects.
Loans are passed through the REC to the Ultimate Recipient. Grants are used to capitalize the REC revolving Loan Fund. The initial loan is made to the Ultimate Recipient.
Maximum Loan Loan: 80% of project cost, up to $740,000. Grant: $300,000 requires a 20% match from the member cooperative.
Maximum Maturity 10 years.
Rates & Fees Interest rate is 0%; borrower pays closing fees; up to 1% servicing fee charged annually.
Loan Uses Construction, land acquisition, equipment purchase and other uses approved by the electric cooperative. Loan criteria are heavily weighted on job creation, employee training and improvements in local economic factors.
Additional Information Federal lending regulations are imposed on project, including compliance with laws pertaining to civil rights, wages, American Disability Act, equal opportunity employment, historic, etc.
An environmental review of the projects is required for construction projects.
For more information, contact Joe Green at 952.492.2313 or 800.282.6832.
Our Economic Development Portal
is a comprehensive resource for site selectors and new and existing businesses. Find area information, community profiles, available incentives and loans, local community contacts, training opportunities using this great resource, developed in partnership with our wholesale power provider, Great River Energy.Go to Economic Development Portal
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