Rural Development Quarterly News Volume 2, Issue 4
McDonough Power Cooperative Receives Funding
Agriculture Secretary Tom Vilsack announced this week that utilities in 13states have been selected to receive $18.1 million through USDA Rural Development’s Rural
Economic Development Loan and Grant program.
The McDonough Power Cooperative will receive a $740,000 loan at no interest over 10 years that it will re-lend to Fusion Tech Integrated, Inc., a metal fabricator in Warren County. The cooperative has been providing electric service in west-central Illinois since 1939. It now serves nearly 5,000 members in Fulton, Hancock, Henderson, Knox, McDonough, Schulyer, and Warren counties and is commited to supporting economic development in its service area.
“Providing capital to support small business development and improve the quality of health care in rural communities is a key part of USDA Rural Development’s mission,” Vilsack said. “Working with our partners, including utilities, USDA is helping to fund rural infrastructure improvements that will enhance the quality of community life and allow small businesses to compete more effectively.”
Rural Development is awarding $14.2 million in loans and $3.9 million in grants to a total of 27 applicants. Funds are allocated to the agency's utility program borrowers, usually rural telephone or electric cooperatives, which they pass on to local businesses and communities. The purpose of the program is to finance economic development and create jobs in rural areas. Funding of individual recipients is contingent upon their meeting the conditions of the loan or grant agreement.
The successful application was the result of the collaboration of McDonough Power Cooperative and Fusion Tech, with support from Prairie Power, Inc. and Western Illinois Economic Development Partnership (WIEDP). "Gathering all the resources needed for effective economic development requires coordination," said Jolene Willis, Executive Director of WIEDP. "We all contributed our part to the assessments, planning and application process for this project and were able to capture additional financial resources to strengthen our area's business base."
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