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Economic Development

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)

Photo of LDJ Manufacturing being awarded USDA Loan Check

LDJ Manufacturing expanded their Pella facility with the USDA's Rural Economic Development Loan & Grant program

 

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:

Jon K. Miles
Pella Cooperative Electric Association
PO Box 106
Pella, IA 50219
(641) 628-1040

Pella Cooperative Electric is an equal opportunity employer and provider.

 

 

Community Partners

Economic Development Organizations

Local Surrounding Areas

Pella Area Development Corporation (PADCO)

Grinnell, Iowa

Iowa Area Development Group (IADG)

Knoxville, Iowa

USDA - Rural Development

Lynnville-Sully, Iowa

Mahaska County Development

Newton, Iowa

Marion County Development

Pella, Iowa

 

Pleasantville, Iowa

 

Red Rock Area


*Non-Discrimination Statement

“This institution is an equal opportunity provider and employer.”

If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, found online at http://www.ascr.usda.gov/complaint_filing_cust.html, or at any USDA office, or call (866) 632-9992 to request the form. You may also write a letter containing all of the information requested in the form. Send your completed complaint form or letter to us by mail at U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410, by fax (202) 690-7442 or email at program.intake@usda.gov.

 

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