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The Rural Electric Economic Development Revolving Fund (REEDRF) purpose
is to provide financing and help leverage private investment in small
communities and rural areas. The fund’s goal is to participate in
projects that will create rural economic growth, lead to permanent jobs
in rural areas and small towns, improve rural development capacity, and
stimulate electric sales for East River member systems. Eligible
projects include private business development; business retention and
expansion; community facilities and infrastructure development; and
producer-owned businesses which add value to agriculture products.
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Acquisition, construction, conversion, enlargement, repair,
modernization or leasehold improvements |
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Purchase and development of land and facilities for business or
housing |
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Purchase of machinery, equipment or supplies, start-up, operating
costs and working capital |
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Feasibility studies and reasonable development costs |
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Interest, including interest on interim financing, during the start-up
phase of the business |
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Community facilities and projects that can demonstrate repayment
ability |
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Infrastructure such as water, wastewater, roads or telecommunications |
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Personal
guarantees of the participating business owner(s) may be required.
Additional covenants may be requested. |
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Loans may not exceed 50% of total project costs, including a minimum
10% owner equity. |
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Interest rates range from a minimum of 3% to Wall Street Journal prime
rate depending on the project type, risk and other criteria. |
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Amortization is based on borrower needs and the assets financed,
generally not longer than 10 years. Flexible terms may be considered on
a case by case basis. |
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Appraisals, proof of title insurance and adequate liability and
property damage coverage on property, premises and equipment are
required. |
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Collateral is required in the form of land, building, equipment and/or
assets of the project/owners. |
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A one-hundred dollar preliminary application fee |
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A 1% loan origination fee for all loans processed and approved, may be
financed as part of the loan. |
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A late payment charge will be incorporated into the loan agreement for
all loans processed. |
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Cost associated with a business plan, financial information. Clear
title, appraisal, environmental compliance, and collections are at the
applicant’s expense. |
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Each applicant must complete an application, provide a business plan,
financial statements, financial projections and additional information
as requested. |
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A project may be required to document its need to finance a gap not
covered by conventional lenders. |
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No loans will be made for gambling establishments (legal or
otherwise). |
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No loans will be made to finance acquisitions that are considered
personal in nature. |
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Your
Local Electric Cooperative
reserves the right to issue applications at its sole discretion. |
RREDRF funding comes from
your Local Electric Cooperative, East River electric power Cooperative,
USDA Rural Business and Cooperative Development Service-Intermediary
Relending Program and Rural Economic Development Grant and Loan Program,
and the National Rural Utilities Cooperative Finance Corporation. Funds
are allocated from among these sources to fit the unique characteristics
of each loan. Bon Homme Yankton Electric
Association; Tabor, SD 57063; 605-463-2507
Central Electric Cooperative Association; Mitchell, SD 57301;
605-996-7516
Charles Mix Electric Association; Lake Andes, SD 57356; 605-487-7321
Clay-Union Electric Corporation; Vermillion, SD 57069; 605-624-5525
Codington-Clark Electric Cooperative; Watertown, SD 57201; 605-886.5848
Dakota Energy Cooperative; Huron, SD 57350; 605-352-8591
East River Electric Power Cooperative; Madison, SD 57042; 605-256-4536
FEM Electric Cooperative; Ipswich, SD 57451; 605-426-6891
H-D Electric Cooperative; Clear Lake, SD 57225; 605-874-2171
Kingsbury Electric Cooperative; DeSmet, SD 57231; 605-854-3522
Lake Region Electric Association; Webster, SD 57374; 605-345-3379
Lyon-Lincoln Electric Cooperative; Tyler, MN 56178; 507-247-5505
Northern Electric Cooperative; Bath, SD 57427; 605-225-0310
Oahe Electric Cooperative; Blunt, SD 57522; 605-962-6243
Sioux Valley Energy; Colman, SD 57017; 605-534-3535
Southeastern Electric Cooperative; Marion, SD 57043; 605-348-3619
Traverse Electric Cooperative, Inc.; Wheaton, MN 56296; 320-563-4863
Union County Electric Cooperative; Elk Point, SD 57025; 605-356-3395
Whetstone Valley Electric Cooperative; Milbank, SD 57252; 605-432-5331
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