USDA seeks applications to spur job growth, economic development in rural areas

The U.S. Department of Agriculture (USDA) recently published an updated Federal Register Notice for the Rural Economic Development Loan & Grant Program (REDLG) soliciting applications and providing updated guidance for cooperatives seeking financing on behalf of eligible projects.

The REDLG program, which is available exclusively to telephone and electric cooperatives, offers funding in the form of grants and pass-through loans, while also allowing co-ops to establish revolving loan funds (RLFs) that can have a lasting impact on helping to grow the communities they serve. 

All of Great River Energy’s member-owner cooperatives have at least a portion of their service area in regions deemed eligible for the USDA’s REDLG program, and a little over half of those cooperatives have active RFLs available to support sustainable growth in their communities. REDLG funds may be used to support business expansion, incubation and startup; technical assistance feasibility studies; healthcare and other essential community facilities; and telecommunications services and computer networks for medical, educational and job training opportunities.

Notable in this announcement is the increased maximum loan amount available under the pass-through loan side of the REDLG program, which has increased from $1.5 million to $2 million. The USDA is soliciting applications prior to the passage of a Fiscal Year (FY) 2023 Appropriations Act — which may or may not provide funding for the REDLG program — to allow applicants sufficient time to leverage financing, prepare and submit their applications, and give the agency time to process applications within FY 2023. 

Whether a cooperative is new to the REDLG program or has an existing RLF, Great River Energy’s economic development team is prepared to help support its success with services including USDA application preparation, economic development strategic planning, technical loan analysis reports, creation and management of a RLF, and more. Deadlines for new applications to USDA for grants or pass-through loans will be collected quarterly on Sept. 30; Dec. 31; March 31, 2023; and June 30, 2023. 

Contact Great River Energy’s economic development team to learn how your cooperative can deploy USDA REDLG program funds in support of economic development projects in your service area.