Economic Development

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Written by Administrator
Friday, 25 May 2007 14:36

Revolving Loan Fund 

Pella Cooperative Electric administers a revolving loan fund (RLF) made available through a partnership with the USDA Rural Development program.  Download the Revolving Loan Fund Application.

Applicants

Application can be made by new or expanding private businesses, local governments, or non-profit community development organizations for projects involving land purchase, buildings, fixed assets, machinery & equipment, and infrastructure.  (Pre-development costs, residential housing, and refinancing are not eligible).

Application for the RLF must demonstrate diversification of the local economy, job creation and retention, or upgrading the public infrastructure to improve health, safety and/or medical care of rural residents. 

Interest Rate

Interest rates will vary from 0% to Prime Rate depending on the financial need of the project, risk associated with the project, and the overall benefit to the area. 

Term

The maximum loan term is 10 years, depending on the project.  

Building/Property     10 years
Equipment     5-7 years
Working Capital     1-3 years
Technology     1-3 years

Security 

An irrevocable letter of credit is preferred.  Collateralization will be considered in lieu of an irrevocable letter of credit based on a risk assessment of individual applications.

Other Funding 

A minimum of 20% of the project must be funded from equity or debt sources other than Pella Cooperative Electric's Revolving Loan Fund. 

Administrative Fee

The annual administrative fee is generally equal to 1% of the outstanding loan balance. 

Fund Availability

RLF loan applications are accepted at Pella Cooperative Electric when the RLF has an available balance of at least $20,000. 

Contact

John R. Smith, CEO
Pella Cooperative Electric Association
PO Box 106
Pella, IA 50219
(641) 628-1040

Pella Cooperative Electric is an equal opportunity provider.

 

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Iowa Area Development Group

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Pella, Iowa

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Red Rock Area

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USDA - Rural Development

Last Updated ( Thursday, 19 July 2012 16:51 )
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