Federated Rural Electric is committed to the people and quality of life within its service area. Federated is eager to work with individuals or firms who want to develop or expand within its region. Federated can provide information on land, buildings, labor opportunities, equipment purchases, utilities, financing package development and more.
Federated has four specific economic development tools available for various projects. The following gives a brief, general overview of each program.
For additional information on any of these programs contact Federated Rural Electric by calling or emailing. You can also open this attachment to review Federated's past economic development projects.
1. Rural Utilities Service (RUS) Economic Development Loan Program
Low interest loan funds are available through the Rural Utilities Service between $10,000 and $740,000. Funds for approved projects are loaned to Federated Rural Electric; in turn, the co-op loans the funds to the project. A pre-application process consisting of an application, a brief written narrative describing the project, and a resolution supporting the application from the Federated Rural Electric board of directors are required to begin consideration by the RUS. In addition, RUS loan funds can be used for the development of water, sewer, and industrial parks.
2. Federated Commercial & Industrial Economic Development Loan Program
Federated Rural Electric makes available low interest loans up to $25,000 through qualifying development organizations to firms building or expanding within Federated's service territory. The loans, which are funded by Federated and administered solely by Federated personnel, are intended to provide gap financing for projects. Guidelines are also available to ensure equal review of loan applications.
3. Federated Revolving Loan Fund
Federated Rural Electric will make available to eligible organizations, according to Federated Policy 322 with a minimum amount of $10,000 and maximum amount of $100,000. The revolving loan fund will not lend more than 50 percent of the total project unless approved by the Federated Board. The interest rate shall be 1 percent, along with a 1 percent service fee. Fixed asset and working capital financing are available. Applications are available from the Cooperative. Applicants pay for the closing and legal fees.
4. L&O/Basin Revolving Loan Fund
Through Federated’s wholesale power supplier (L&O Power Cooperative/Basin Electric), a revolving loan fund exists up to $80,000. Applications are available from Federated.