The Office of Rural Development, a division of the United States Department of Agriculture, manages the many programs of the USDA intended to boost the economy and quality of life in Rural America. One of its recent undertakings is the provision of loans to be used for the expansion and improvements of electric infrastructures in some rural areas.
These rural electric loans are available in 10 states across the country. Electric cooperatives and utilities may avail of the said loan.
The news was announced on September 1, 2017, by the Assistant to the Secretary for Rural Development Anne Hazlett. “These loans will help provide reliable electricity to rural areas in more efficient and sustainable ways than ever before,” Hazlett mentioned.
She also made mention that it is important to invest in electrical infrastructure because it is essential to the success of residents, businesses, and agriculturists in rural communities.
Over $200 Million Intended For Electric Improvements
A total of more than $200 million worth of loans are available in this program, including $12 million intended for smart grid technologies. The integration of smart grid to electric systems provides more reliable and efficient electric power.
Parts of rural areas in following states will benefit from the electric loan program provided through the USDA. They are the states of Idaho, Kentucky, Minnesota, Missouri, Montana, North Dakota, Oklahoma, South Dakota, Virginia, and Wyoming.Get in Touch with a VA-Approved Lender.
Previous Rural Electric Loans Opened New Doors In Rural America
In the past, such rural electric financing programs have brought about major developments in many rural parts of the country. According to the Butte County Post report, a membership corporation in North Carolina benefited for a loan amounting to $ 6 million. This went to funding energy efficiency improvements which significantly reduced the energy consumption by an average of 20 percent.
In the same report, another membership corporation in Jefferson, Georgia used a $140 million electric loan that funded the expansion of the Kubota Manufacturing Plant of America, a facility located in Gainesville. Not only did it improve the delivery of electric power to more rural areas, it also created 650 jobs to Hall County.
The USDA RD Electric Program is the replacement to the Rural Electrification Administration. The vast electric infrastructure of rural America still needs modernizing. Through programs such as this by the Rural Development, the much-needed capital is supplemented.Click here to be connected to a lender.
Applying for Rural Electric Loans
For those who would want to apply for rural electric loans now available, they should contact the Office of Loan Origination and Approval (OLOA). The loan approval and obligation of funds also happen in OLOA.
An electric borrower will then create a loan application with the assistance of General Field Representatives (GFRs). To guide the borrower for the financial and operational activities, OLOA’s Financial Operations and Engineering Branches will step in.
The USDA has many different programs and services which cater to the various needs of rural areas. The Rural Development has programs centered in business and economic development, energy, electric, housing, and telecommunications.
To learn more about the agency’s rural electric loans as well as other programs, talk to a USDA-approved lender nearest you.Click to See the Latest Mortgage Rates»