Jasper Schneider, USDA Rural Development state director, today announced that Dakota Valley Electric Cooperative will receive $2 million in loans to support local business projects.
“This investment will expand businesses, create jobs and build up communities,” said Schneider. “Partnering with Dakota Valley Electric, we are able to help grow local businesses that will have broad economic impact.”
The funding is being provided through USDA’s Rural Economic Development Loan (REDL) program. USDA will provide two zero-interest loans to Dakota Valley Electric, which they will in turn lend to the following businesses.
Farmers Union Oil of Southern Valley (Fairmount): $1 million loan. The financing will help construct a new 37,400 square foot shop and office in Fairmount. The shop will be for manufacturing trucks and trailers for resale to customers in the fertilizer business. The office will replace Farmers Union’s current space and provide room for the business to expand. Currently, they have 76 full-time employees and are planning to add five or more employees once the project is complete.
Minn-Dak Farmers Cooperative (Wahpeton): $1 million loan. The financing will help acquire and install specialized equipment in their current processing facility. The equipment will provide the means to further process molasses byproduct into refined granulated sugar through a de-sugarization process. The project is expected to increase the cooperative’s revenues and add about 20 more full-time employees.
The REDL program funds business start-up or expansion, business incubators, education and training facilities, equipment, community development assistance, health care and other community projects that support rural jobs. For more information on USDA programs, please call (701) 530-2037 or visit www.rurdev.usda.gov/nd.