Rural Electric Economic Development (REED) Fund
INVESTING TO MAINTAIN VIBRANT COMMUNITIES
The REED Fund is a nonprofit community development financial institution dedicated to lending and leveraging investment to improve the infrastructure and economic base in our region.
We offer loans to help promote growth and contribute to job, business and wealth creation.
REED financing for business and agribusiness supports development and expansion. Projects should contribute to employment and business ownership in:
- Retail, service and manufacturing
- Agricultural processing, marketing and support services
- Business facilities, equipment and/or working capital
- Facilities for lease to businesses
- REED does not lend for crops or livestock
REED loans contribute to the quality of life and services necessary for sustainable development in:
- Healthcare, education, recreation and arts
- Infrastructure, water, wastewater and telecommunications
- Public safety and emergency services
- Community facilities for public use
Loans supporting housing development are available to both nonprofit and private developers for:
- Multi-family rental housing
- Single family homes for sale or rent
- Improvement and renovation of properties for resale or rent
- REED does not make home loans to owner occupants
REED FINANCING GUIDELINES
We partner with commercial banks, nonprofits and government agencies to finance up to 50% of project costs. Loans cannot be solely for refinancing debt from other lenders.
Successful REED applicants:
- Must be legal entities (sole proprietors, corporations, cooperatives, LLCs and/or units of government)
- Submit a complete application with supporting materials
- Can show that the project improves business development, job retention or creation, and/or tangible benefits to the community or region
- Invest a minimum of 10% equity in cash or assets
- Provide assurance of willingness and ability to repay the loan
Some additional conditions apply. Please contact us for more information.
A $100 application fee is due at submission. An origination fee and closing costs are deducted from proceeds when a loan is issued. Loans are generally for “take-out financing” at project completion.
It’s Easy to Apply
Here’s how you can obtain an application:
- Contact your local electric cooperative (see map)
- Call one of the numbers listed below
- Email firstname.lastname@example.org
- Complete and submit the application request at www.reedfund.coop
Contact your local electric cooperative or the REED Fund if you have questions or need assistance to complete an application.
- Phone: 605-256-4536
- Phone: 605-356-3395
- Fax: 605-256-8057