Revolving Loan Fund

Currently, we offer a Revolving Loan Fund which was established in February, 2007, as Southeast Electric assisted the Town of Ekalaka with purchasing a Backhoe principally to be used for water and sewer projects.  At that time, Southeast Electric matched a low interest loan offered by Basin Electric Power Cooperative through Upper Missouri G&T which could be used by our community until 2017. The initial amount of the fund was $40,000.00. As the Town of Ekalaka repays its loan (appx. $5500.00 each year), the funds will begin to build and become available for the additional projects.

Eligible Applicants:

• New or expanding private businesses
• Not-for-profit entities
• City or County Governments

Eligible Uses of Funds:

• Land Purchases
• Fixed Asset Purchases
• Machinery & Equipment Purchases
• Building Purchases

Ineligible Uses of Funds:

• Speculation Land Purchases
• Debt Refinancing
• Payments to owners or equity investors
• Projects which lack economic development potential
• Pre-development costs

Loan Amounts:

Minimum of $5,000

Terms:

• Semi-annual payments due June 1st and December 1st
• 1% interest rate
• Term must not exceed December 31, 2017, and will be established on a case by case basis depending upon purpose and collateral.
• Financial information will be required to determine repayment ability because Southeast Electric is ultimately responsible for repayment to Basin Electric Power Cooperative.
• Adequate collateral 

The Cooperative Board will consider the financial need of the project, the probability of success, the benefits of the project to the rural area, including number of jobs to be created or retained, diversification of the economy, community development projects and improvements to the community infrastructure.

Collateral:

The revolving loan fund requires adequate collateral for the loan request which include requiring mortgages, liens, and or personal guarantees.  Other terms and conditions may be required as determined by the cooperative board of directors.

Administrative Fee:

Generally an administrative fee will not be charged.  There may be additional costs paid by the borrower as they relate to taking a mortgage or lien on the collateral.