USDA Rural Development Loans

Eastern Maine Electric Co-op, through its ongoing relationship with USDA Rural Development is able to tap into that federal agency’s Rural Economic Development Loan and Grant Program. As a practical matter, this means that the Cooperative can provide a pass-through loan for qualifying job creation projects in or affecting its delivery service territory.

The REDLG program provides funding to rural projects through local utility organizations. Under the REDLoan program, USDA provides zero interest loans to local utilities which they, in turn, pass through to local businesses (ultimate recipients) for projects that will create and retain employment in rural areas. The ultimate recipients repay the lending utility directly. The utility is responsible for repayment to the Agency. Under the REDGrant program, USDA provides grant funds to local utility organizations which use the funding to establish revolving loan funds. Loans are made from the revolving loan fund to projects that will create or retain rural jobs. When the revolving loan fund is terminated, the grant is repaid to the Agency.

EMEC has partnered with USDA Rural Development on one such REDLG project, a children’s treatment project that now employs 100 people in the Calais area.

For more information on REDLG loans and their requirements, contact Charlie McAlpin at EMEC at
(207) 454-7555, extension 124.