Revolving Loan Fund
Pella Cooperative Electric administers a Revolving Loan Fund (RLF) made available through a partnership with the USDA Rural Development program.
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 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.
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
LDJ Manufacturing expanded their Pella facility with the USDA's Rural Economic Development Loan & Grant program
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.
A minimum of 20% of the project must be funded from equity or debt sources other than Pella Cooperative Electric's Revolving Loan Fund.
The annual administrative fee is generally equal to 1% of the outstanding loan balance.
RLF loan applications are accepted at Pella Cooperative Electric when the RLF has an available balance of at least $20,000.
Jon K. Miles
Pella Cooperative Electric Association
PO Box 106
Pella, IA 50219
Pella Cooperative Electric is an equal opportunity employer and provider.
Economic Development Organizations
Local Surrounding Areas
“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 firstname.lastname@example.org.