Areas Served: Midwest Energy service area
Through the Rural Economic Development Loans and Grants (REDL&G) program, the USDA makes loans and grants to Midwest Energy and other electric and telephone cooperatives.
The cooperatives then pass the federal funds through to eligible rural projects.
To the ultimate recipient, there is no difference between a REDL&G loan and grant.
In both cases, the ultimate recipient receives a low-interest loan with a term up to 10 years.
The federal dollars are interest free, and Midwest Energy is allowed to charge one (1) percent interest to cover administrative costs.
Midwest Energy and the USDA require security for all loans so that customers and taxpayers will not be burdened by defaults.
The primary difference between a grant and a loan is the destination of the funds upon repayment.
When an ultimate recipient repays a loan, the dollars return to the federal government.
When the ultimate recipient repays a grant, the dollars are retained by Midwest Energy, placed in a revolving loan fund and then reused to make loans to assist additional projects in the region.
Benefits of the REDL&G program include: – Attracting new industrial and commercial customers, – Expansion of existing businesses, – Building demand for locally produced commodities, and – Improving the economy and enhancing the quality of life in the community.
Contact InformationMidwest Energy
Address: 1330 Canterbury
City: Hays
State: Kansas
Website:
https://www.mwenergy.com/community/business-financing-options
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