AEC Announces $1.14M USDA Rural Development Loan for Purchase of Industrial Property within Jefferson City

You can only get one through an electric cooperative.

The Federal government has once again awarded a substantial loan through the USDA’s Rural Economic Development Loan & Grant program—this time, to Jefferson City’s Industrial Development Board (IDB). AEC General Manager Greg Williams is a staunch proponent of the program: “I am so pleased that the Co-op was able to leverage this USDA funding for our local community—specifically, for the purpose of buying land for industrial development. Anytime we can grow our industrial base, that’s a win for our communities—including our residential members. That steady kWh load helps keep rates steady for the rest of us.”

The interest-free loan is repayable to AEC over a 10-year period with a one-year deferment. It will be augmented by additional financing of $285K through AEC’s Revolving Loan Fund. Williams points out that AEC was in a unique position to serve as the conduit for this loan award. “Because we can apply for this type of loan based on our status as an electric cooperative,” he explains, “we’re in a great position to be able to help many types of entities obtain financing for projects that will retain and create employment in rural areas, including industrial expansions, the construction of schools, hospitals, and community facilities like justice centers, courthouses, or senior centers. Over the past 10 years or so, we’ve been able to secure around $4M for our communities.”

“There are certain requirements that must be met,” says Williams, “with regard to eligibility. But the funds are there and our Cooperative is poised to help secure loans for viable projects. We hope others will turn to us for assistance. AEC is proud to play a role in strengthening the economic vitality of the communities we serve.”