Rural Economic Development Loan & Grant Program (REDL&G)
Under the Rural Economic Development Loan program, USDA provides zero interest loans to rural electric cooperatives which the cooperative can pass through to eligible business and community projects.
Northern Plains board of directors will consider applications for the loan program when the project provides financial stimulus to the area, complements existing business and industry and creates employment opportunities in the region.
- Terms of the loans are zero percent interest for 10 years.
- The maximum loan amount is set annually and cannot exceed 80% of the total project cost.
- Funds can be used for new and expanding for-profit businesses and non profit organizations for land acquisition, construction, equipment and working capital.
- The project must be credit-worthy.
- An irrevocable letter of credit from an approved source will be required to secure the loan.