Lane-Scott Revolving Fund Supports Hometown Pride Grocery in Healy
Hometown Pride is more than just a name. It’s a community action. With the closing of the Cooperative Grocery Store in January of 2003, the citizens of Healy were forced to drive to Scott City or Dighton for their basic grocery needs. After a groundswell of community support, Sharp Bros. Seed Co. purchased the building and contents with help from a Lane-Scott Economic Development Loan. The building was completely remodeled and new energy efficient fixtures installed. After a long wait, the community welcomed the reopening of their grocery store in October 2003. The support has been fantastic. Every day someone comes in and asks for a specific item they would like the store to carry rather than purchase it out of town. The business is truly "Hometown Pride."
Lane-Scott Electric originally established this revolving loan fund for the purchase of a fire truck for the City of Dighton and Lane County. This revolving loan fund now provides a much needed avenue for business development opportunities in our area. Lane-Scott is pleased to be associated with Hometown Pride and wishes them a great future.
Loans & Grants
Rural Utilities Services, formerly known as REA has a program available to Rural Electric Cooperatives and Rural Telephone Cooperatives to encourage business development in rural areas. The program called the Rural Economic Development Loan & Grant Program is available to cooperatives for business expansion, or new business start-ups. Grants are also available to sponsoring cooperatives through the program for community development projects such as municipal or community facilities, industrial parks or medical facilities.
Loans made through this program are at 0% intrest to the sponsoring cooperative. The sponsoring cooperative re-loans the money to the ultimate recipient at 0% with a small administrative fee. Loans may be made for up to 80% of the project with a $2,000,000 maximum. Recipients of 0% loans must guarantee the loan with a letter of credit in the amount of the loan from a lending institution approved by the Cooperative Board of Trustees. Community Development projects work in the same manner, the sponsoring cooperative re-loans the money to the city, county, or non-profit organization at 0% interest with a loan maximum of $300,000. Community Development projects must also guarantee the loan either with a letter of credit or applicable bond.
Money for this program comes from two sources. Approximately 70% of the funding comes from advance payments made by Rural Electric borrowers and then reinvested with the profits going to the program. The remainder comes from cooperative banks and the federal budget. These loans are very competitive with only the best applications being funded.
If you are interested in the Zero Interest loan program or have any questions, please contact Lane-Scott Electric Coop at 800.407.2217 or firstname.lastname@example.org.