A program offered by the USDA, that has been highlighted in the Illinois Country Living, a publication that is sent monthly to all MCEC members, was recently taken advantage of by one of our commercial accounts. This Rural Economic Development Loan and Grant program (REDLEG) is available to all commercial and Industrial accounts of rural electric and telephone cooperatives. Rural Development provides financing and technical assistance to foster growth in homeownership, business development, and critical community and technical infrastructure. More information on USDA Rural Development is available on the web at www.rurdev.usda.gov/il.
With that being said, I would like to share with you our experience with the REDLEG program. We, the board, at MCEC, were approached last year by one of our commercial members, Wm. Nobbe & Co., and were asked if we would be the vehicle in which they could apply for this no-interest loan from the USDA out of the Rural Economic Development Loan and Grant program (REDLEG). This program was brought to the attention of Nobbe John Deere by the corporate office that had previously gotten a REDLEG loan for a dealership in Kansas.
Nobbe & Co. researched the program and originally asked MJM Electric Cooperative in Carlinville (where the facility is to be located) to be the vehicle for the loan. MJM was not in a position to help at the time and in turn Nobbe & Co. approached MCEC. Once the presentation was made, MCEC was glad to help. The onus of their success was due entirely to their diligence to detail. All paperwork was done by Nobbe & Co. They were judged and subsequently awarded the loan completely on their merits, by the USDA. We at MCEC had absolutely no say in the loan request process. The loan is to be paid back over a ten year period and is secured with a letter of credit.
The MCEC board and management viewed this entire process as a way to help the rural economy, no matter who or where it is and to solidify any and all commercial and industrial members future presence in our service territory for years to come. We hope the results will be a benefit to the entire membership.
Bottom line, in keeping with the coop's tradition of helping rural America, this program fits. It is available to all commercial and industrial who qualify. If you want more information please contact the office or stop in at Nobbe's and they would be happy to explain the processes they went through.
Any other issues or further questions you might have, my phone number is in the book.
Sincerely,
Terry J. Grommet, Chairman
Monroe County Electric Co-Operative, Inc.