Our cooperative is proud to support economic growth and community development opportunities through the USDA Rural Economic Development Grant (REDG) Program. This program, administered through the U.S. Department of Agriculture’s Rural Utilities Service (RUS), provides funding that can help strengthen rural communities, create jobs, and support projects that improve the quality of life for local residents.
USDA Rural Development – Minnesota
REVOLVING LOAN FUND
LREC applied to the USDA for an economic development grant on behalf of Essentia St. Mary’s for the construction of a new clinic in Pelican Rapids. The USDA awarded LREC a $300,000 grant, which established an economic development revolving loan fund. The first loan from the fund was made to Essentia St. Mary’s. LREC contributed the required 20 percent match of $60,000, bringing the total loan amount to $360,000. The funds were used to support construction of the new clinic. The loan carried a zero percent interest rate and was amortized over 10 years.
As Essentia St. Mary’s repaid the $360,000 loan, the funds were returned to the revolving loan fund. Those dollars are now available to support future economic development projects that create jobs and stimulate the local economy.
Together, we can invest in projects that build stronger communities, expand economic opportunity, and create a brighter future for rural America.