It's important for co-ops to help to bolster our local communities through economic development, which is why Pella Cooperative Electric administers Revolving Loan Funds made available through a partnership with the Iowa Area Development Group and the U.S. Department of Agriculture. To learn more about Iowa's financial assistance programs available through your co-op, contact us to discuss the most appropriate programs to support your project.
Applicants
Applications 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:
Doug Stewart
Pella Cooperative Electric Association
PO Box 106
Pella, IA 50219
(641) 628-1040
Community Partners
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Economic Development Organizations |
Local Surrounding Areas |