ASHLEY, N.D., May 10, 2012 -- USDA Rural Development selected KEM Electric Cooperative, Inc. to receive a $740,000 loan through the Rural Economic Development Loan program. KEM Electric will use this financing to provide a loan to LaMoure Equipment, Inc. d/b/a Green Iron Equipment to construct a new building for their farm equipment dealership in Ashley.
“This financing will help support our agriculture industry and lead to business development,” said Jasper Schneider, state director at USDA Rural Development. “This is a good example of a public and private partnership promoting economic growth and job creation.”
The project will construct a new 140” X 125” building located to the east of Ashley. Currently, Green Iron Equipment operates out of four existing structures with two of those buildings being small service shops that cannot accommodate large farm machinery. The new building will improve efficiency by keeping all areas of operation, sales, parts and service under one roof. With a growing customer base, the facility will allow the company adequate space and staff for improved and timely service.
“Green Iron Equipment is excited and anxious for the new facility expansion,” said Lyle Fey, manager of Green Iron Equipment in Ashley. “The facility will better serve the needs of the growing customer base in Ashley and for the surrounding area.”
When the project is complete, seven new jobs will be created at the Ashley dealership. The total project cost is estimated at $1.1 million. Green Iron Equipment is an authorized John Deere dealership with six stores in North Dakota and South Dakota.
The Rural Economic Development Loan and Grant Program (REDLG), which is administered by USDA Rural Development, provides funding to rural projects through local utility organizations. Under the program, USDA provides zero-interest loans to local utilities which they, in turn, pass through to local businesses for projects that will create and retain employment in rural areas.