Business Financing Programs through Lake Country Power and Great River Energy’s member cooperatives
Lake Country Power is committed to helping businesses start and grow. We offer or have access to a number of funding solutions for businesses planning to locate or expand in our cooperative service areas. Following is a list of business funding opportunities.
Lake Country Power Revolving Loan Fund:
Loans approved locally by LCP Board of Directors, following United States Department of Agriculture (USDA) guidelines. Program intended to serve as gap financing to encourage job growth and support new and expanding business.
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Maximum Loan: $100,000 or up to 80% of the total project cost
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Maximum Maturity: 10 years
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Rates and Fees: Minimum interest rate of 3%; up to 1% annual service fee
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Loan Uses: Real estate acquisition, construction, equipment, inventory or working capital (as part of the entire project)
USDA Rural Economic Development Loan & Grant Program (REDLG):
Loans are passed through the rural electric cooperative to the ultimate recipient. Grants are used to capitalize the electric cooperative revolving loan fund; the initial loan is made to the ultimate recipient.
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Maximum Loan: 80% of project cost, up to $2 million
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Maximum Grant: $300,000; requires a 20% match from the member cooperative
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Maximum Maturity: 10 years
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Rates and Fees: Interest rate is 0%; borrower pays closing fees; up to 1% servicing fee charged annually
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Loan Uses: Construction, land acquisition, equipment purchases and other uses approved by electric cooperative.
Business Expansion Loan Program:
Available to Commercial and Industrial (C&I) customer or municipality serving a C&I customer of Great River Energy's all requirements member-owner cooperatives. Loans can be structured as a direct loan to the borrower, or loan participating with other lenders. Facilitates commercial and industrial investment, and supports projects that will result in new energy sales.
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Maximum Loan: $500,000 or up to 50% of the total project cost
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Maximum Maturity: 10 years
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Rates and Fees: Below market interest rates available; no closing costs other than "out of pocket" legal expenses
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Loan Uses: Land acquisition and pre-development activities; construction costs; furniture, fixtures and equipment
E3 Fund (Energy Efficiency & Electrification Fund):
Available to Great River Energy's all requirements member-owner cooperatives. Loans structured as a pass-through loan to the member co-op to provide loans to CI&A customers. Facilitates the installation of high-efficiency equipment and supports beneficial electrification.
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Maximum Loan: $350,000 or up to 80% of the total project cost
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Maximum Maturity: 10 years based on the useful life of the equipment
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Rates and Fees: Below market interest rates available; no closing costs other than "out of pocket" legal expenses; up to 1% servicing fee charged annually
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Loan Uses: Energy conservation projects (equipment & installation); beneficial electrification projects resulting in net carbon reduction and new energy sales; engineering and design costs
For more information about these funding opportunities, contact Dan Cooper at economicdevelopment@lcp.coop or 218-485-2250