Rural Economic Development Loan & Grant Program
The Rural Economic Development Loan & Grant Program (REDL&G), is through the USDA. The USDA provides funding to rural projects through a local utility that is a RUS borrower.
Bluestem Electric Cooperative is a RUS borrower and is eligible to participate in the program. The RED&G is manly for job creation in rural areas, less than 50,000 population.
The Utility can make an application to the USDA on behalf of the local business (the Ultimate Recipient) for the project. The Ultimate Recipient then repays the Utility and the Utility repays the USDA.
The monies are zero interest to the Utility, and the Utility usually charges an administrative fee to the Business. Bluestem charges a one percent fee of the outstanding balance for the life of the note which is 10 years.
The business will contact Bluestem about their project, request to attend a Board Meeting to ask for Bluestem to make an application to the USDA on their behalf. If the Bluestem Trustees agree to do so, there will be a Board Resolution to that effect.
Bluestem does not participate in the Grant Program, however. There is some misunderstanding of the term (Grant). Those monies have to be repaid to the USDA as well.
For more information, contact a WCEP Board Member or Kevin Heptig at Bluestem Electric Cooperative.
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