Two of Great River Energy’s member-owner cooperatives secure USDA REDLG financing

East Central Energy (ECE) and Todd-Wadena Electric Cooperative (TWEC) were included in USDA’s recent award announcements for the Rural Economic Development Loan and Grant (REDLG) Programs.

TWEC was awarded a $1 million pass-through loan to support the expansion of Enterprise-CP, a pasta manufacturer and packaging plant in Long Prairie. The zero-interest loan will help the company build a new warehouse to support the continued growth of the Todd County operation, resulting in more than 25 new jobs over the next several years.

ECE was awarded a $300,000 grant through the REDLG program, which will provide financing for the city of Braham to purchase a new fire truck for the Braham Fire Department. This grant will be matched with $60,000 from the cooperative and extended to the city as a $360,000 loan at 0% interest.

Once repaid, these funds will be retained in ECE’s revolving loan fund (RLF) to support future business expansions and community development projects in its service area.

USDA REDLG program extended through FY2026

On Sept. 15, 2025, the U.S. Department of Agriculture (USDA) released a Notice of Funding Opportunity for the REDLG Programs for fiscal year 2026. No major changes were apparent, with applications being accepted on a quarterly basis through June 30, 2026.

Actual funding levels for the REDLG programs will not be known until Congress passes an appropriations act for FY2026, but early indications suggest FY2025 funding levels will be maintained. The USDA estimates that approximately $50,000,000 will be available for loans and $10,000,000 for grants for FY2026.

Maximum loan amounts remain capped at $1 million, and the maximum grant award of $300,000 still requires a $60,000 match from the participating cooperative. Further changes to the environmental review requirements are anticipated, and many of the templates for required forms and documentation have been updated and replaced.

How the USDA REDLG Programs help rural communities

Nationwide, the USDA REDLG Programs provides funding for rural community and economic development projects by partnering with local utility cooperatives. USDA provides zero-interest loans to local co-ops, which in turn are passed on to local businesses (ultimate recipients) for projects that will create and retain employment in rural areas.

USDA also provides grants to local utility organizations which are used to fund community development projects and establish RLFs that can help support entrepreneurs and businesses in rural communities in perpetuity.

Great River Energy is proud to support its member-owner distribution cooperatives in preparing applications for the USDA REDLG programs. If you would like to learn more about program eligibility for your next project, please reach out to Erin Sparks or Jeff Borling today.