Electrical Utilities
In 1936, Congress established the Rural Electrification Act, to meet the needs of rural Americans in the
20th Century. As a result, the Rural Electric Program continues into the next millennium to support the electrification needs
of rural America. In this age of deregulation, it is critical that rural areas have access to affordable electricity in order
to prosper economically and remain viable.
The Rural Electric Program makes insured loans and loan guarantees to nonprofit and cooperative associations, public bodies,
and other utilities. Insured loans primarily finance the construction of facilities for the distribution of electric power in
rural areas. The guaranteed loan program has been expanded and is now available to finance generation, transmission, and
distribution facilities in rural areas.
Rural maintains a staff of General Field Representatives (GFR) stationed around the country, resulting in an outreach-type
program delivery system. This technical assistance has been part of the program since its inception. Representatives meet
regularly with borrowers at the borrowers' location. In addition to assisting in the development and processing of financial
packages, they frequently discuss matters of interest to borrowers - all on a one-to-one basis - and provide assistance as
requested.
For more information on this Utility program, contact one of the following Regional representatives:
Western Montana: Dan Bowers - (208) 321-8095
Eastern Montana: Denver Schlaeppi - (406) 652-6108
| Objective | Provide financial aid through direct and guaranteed loans |
|---|---|
| Applicant | Non-profit and cooperative associations, public bodies and other utilities. Contact: USDA Rural Electric Staff Division STOP 1569 1400 Independence Avenue SW Washington, DC 20250-1569 |
| Uses | Generation, bulk transmission facilities and distribution of electric power. Enhance 911 emergency service, digital switching equipment, fiber optic cable |
| Population | Rural areas |
| Loan/Grant | Direct loan or loan guarantee |
| Terms & Conditions | Interest rates are established in accordance with 7 CFR 17145 |
