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Rural Economic Development Grants
Success Stories

Iowa  |  Minnesota  |  South Dakota 

For detail information about the program visit the Rural Economic Development Grants webpage.
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Iowa:

How Rural Development Helped:
Rural Development Funds in the amount of $200,000 will be used to provide grants to Rural Utilities Service borrowers to provide economic development. This project will create a new revolving loan fund which is used to make loans to ultimate recipients. The initial loan from the revolving loan fund will be used to assist Palmer Lutheran Health Center in financing construction of a homecare facility in West Union, Iowa.

The Results:
There were 30 jobs created and 1 business assisted as a result of this program.

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Minnesota:

Outline of Need:
East Otter Tail Telephone, based in Perham, MN, relies on USDA Rural Development’s Rural Economic Development Loan and Grant (REDLG) program to encourage economic development in its cooperative telephone service area. The facility provides up-to-date high-tech services for existing and startup businesses. Its high-tech workforce training center is also available for community education, distance learning and more.

How Rural Development Helped:
1. The REDLG program allows a utility co-op to borrow up to $450,000 at zero percent interest for up to ten years if it finances loans for business expansion, community projects, feasibility studies, and telecommunication or community television systems. East Otter Tail, now called Arvig Communication, contributed a 20 percent match to obtain a $330,000 Rural Development loan for the Perham Area Emergency Services Center and Community Technology Center.

The Results:
Additional REDLG loans have allowed Arvig to finance a MeritCare Clinic in New York Mills, Tuffy’s Pet Foods in Perham, and Diamond Tool for expansion of its manufacturing plant in Bertha, MN. Arvig spokesman David Schornack says loans and grants from USDA Rural Development make a huge difference because most of these REDLG projects would not have happened without the federal government’s help.

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South Dakota:

Outline of Need:
The Marshall County Healthcare Center expansion project involves an 8,400 square foot addition to a house for healthcare services and was awarded $400,000. The facility serves approximately 400 inpatients and 9,000 outpatients per year. The addition was needed for the continuation of providing adequate services.

The Results:
As a result of this program 24 full time and 42 part-time are expected to be added when the project is completed.