USDA Awards Loans and Grants to Support Rural Economic Development in Iowa

Name
Bill Menner
City
Des Moines
State
Iowa
Release Date
Mar 30, 2015

Agriculture Secretary Tom Vilsack today announced the award of $31 million in loans and grants for organizations in Iowa and 11 other states to promote rural economic development.

"These infrastructure investments will help rural residents start or expand businesses," Vilsack said. "The funds can be used for a wide range of needs. They can help businesses increase production and manufacturing capacity, and can even help rural homeowners save money by making their homes more energy efficient."

The funding is being provided through USDA's Rural Economic Development Loan and Grant (REDLG) program. Vilsack today announced $31 million in loans and grants for 38 projects in 12 states, including nine projects in Iowa.

Through the REDLG program, USDA provides zero-interest loans and grants to utilities that lend funds to local businesses for projects to create and retain employment in rural areas. These revolving loan funds broaden the program's reach and create a multiplier effect for its impact. Eligible applicants are USDA Rural Utilities Service borrowers. Innovative USDA investments through this program are boosting economic development in rural communities all across the country, Vilsack noted.

Iowa projects receiving awards today include:

Midland Power Cooperative of Jefferson

  • $319,880 loan to construct a building that will be offered for sale to a prospective business in Iowa Falls

Heartland Power Cooperative of Iowa Falls

  • $1,000,000 loan to assist A to Z Drying, a manufacturing business, buy machinery and equipment

Corn Belt Power Cooperative of Humboldt

  • $300,000 grant will be loaned to Iowa Falls Area Development Corp. to construct a shell building in an industrial park
  • $300,000 grant will be loaned to Kossuth Regional Health Center in Algona to renovate its radiology department

Grundy County Rural Electric Cooperative of Grundy Center

  • $2,000,000 loan to assist French Village, LLC build a licensed, assisted-living facility near Conrad.

Central Iowa Power Cooperative of Cedar Rapids

  • $2,000,000 loan to assist ELPLAST America Inc. build a 32,000-square-foot building in the Marion Industrial Park

Raccoon Valley Electric Cooperative of Glidden

  • $300,000 grant will be loaned to St. Anthony Regional Hospital and Nursing Home to renovate a building in Carroll.

Franklin Rural Electric Power Cooperative of Hampton

  • $300,000 grant will be loaned to Hampton Dental, PLC to acquire a dental practice in Hampton.

T.I.P. Rural Electric Cooperative of Brooklyn

  • $300,000 grant will be loaned to Grinnell Regional Medical Center for renovations

The awards announced today are contingent upon the recipients meeting the terms of the loan or grant agreement. View the complete list of awards.

Since the beginning of the Obama Administration, the REDLG program has helped create or save more than 32,000 rural jobs, provided almost $338 million in economic development assistance, improved manufacturing capability, expanded health care and educational facilities and helped expand or establish almost 1,200 rural businesses and community projects.

President Obama's plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President's leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America's economy, small towns and rural communities.

Contact USDA Rural Development

For more information about USDA Rural Development please call (515) 284-4663 or visit www.rd.usda.gov/ia.

USDA Rural Development has 11 offices across the state to serve the 1.7 million Iowans living in rural communities.  Office locations include a State Office in Des Moines, along with Area Offices in Albia, Atlantic, Humboldt, Indianola, Iowa Falls, Le Mars, Mount Pleasant, Storm Lake, Tipton and Waverly.