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Rural Development

 
What Is Rural Development

Provides zero-interest loans and grants to Rural Utilities Service borrowers to promote rural economic development and job creation projects.

 

Loan and Grant Purposes

Funds are passed on to third party borrowers as zero-interest loans for projects that create jobs in rural areas, or that provide infrastructure or community facilities in rural areas that will lead to economic stability.

 

Who Is Eligible

Rural Utilities Service Electric and Telephone borrowers with outstanding loans, and not delinquent on loans, are eligible.

 

Other Loan and Grant Criteria

Applications are scored on job creation potential, sustainability of projects, and suitability of project to the area, diversification of employment in the area, amount of supplemental funds, relative income, and employment levels.

 

Garrison Memorial Hospital receives grant from a McLean Electric Cooperative

The Garrison Memorial Hospital is the second recipient of the McLean Electric Cooperative's revolving loan fund program. The hospital received a $300,000 low-interest loan that was made possible through the joint effort of McLean Electric Cooperative and USDA's Rural Economic Development Loan and Grant (REDLG) program.  The program provides zero-interest loans and grants to local utility companies, which they, in turn, re-lend to local businesses for improvement projects.

Pictured L-R Lori Capouch, Rural Development Director from NDaREC's, Jasper Schneider, USDA Rural Development State Director, Tod Graeber, Garrison Memorial Hospital Administrator and Martin Dahl, General Manager of McLean Electric.

The purpose of the REDLG grant is to encourage rural electric and telecommunications utilities to promote rural economic development and job creation. Loans are provided to finance a broad array of projects, including community development assistance, education, job training or medical services, business incubators, and technical assistance.

Upon repayment of the loan, the funds will be used by the utility to create and operate a revolving loan fund program to promote rural economic development and job creation projects.

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