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Revolving Loan Funds Support Your Community

Photo: In 2011, Bill Menner (center front, right), USDA Rural Development Director in Iowa, visited Orange City to recognize North West REC for its dedication to rural economic development in northwest Iowa.

North West REC created a Community/Economic Development Revolving Loan Fund in 1995 to improve the quality of life in rural areas by contributing to long-term improvement in the local economy. 80% of the funds for the Revolving Loan Fund have come from grants offered through the USDA Rural Economic Development Loan and Grant Program (REDLG) and 20% of the funds from North West REC’s general funds.

Low Interest Loans Pay Off

As of January 1, 2014, the Revolving Loan Fund has grown to $3.7 million. North West REC has made over $8.32 million in low interest loans to more than 48 projects throughout northwest Iowa.

Eligible Applicants

Eligible Applicants include organizations involved in a community or economic development project that creates or saves jobs and/or provides needed community facilities that benefit rural areas. Eligible applicants include corporations, limited liability companies, partnerships, sole proprietorships, cooperatives, nonprofit entities, and local government units.

Uses of Funds

Eligible Uses

  • Land
  • Buildings
  • Manufacturing machinery and equipment
  • Work equipment
  • Infrastructure
  • Residential Housing Projects (limits apply)

Ineligible Uses

  • Refinancing of existing debt

  • Projects without any supplemental financing

  • General improvement loans to normal replacement needs of a business and unrelated to business expansion

  • Projects that would result in the transfer of existing employment or business activity more than 25 miles

  • Agricultural production except where the project is a farmer-owned cooperative or similar

  • Projects that are primarily working capital

  • Construction projects of an individual residential nature

  • Vehicles used for general purposes or personal use

  • Illegal activities and legalized activities

  • Projects in which any director, officer, general manager, or supervisory employee of NWREC, or close relative thereof, has a financial interest; projects in which any subsidiary or affiliated organization of NWREC has a financial interest; or projects which, based on the judgment of the Board, would create a conflict of interest, potential for conflict of interest, or any appearance of a conflict of interest.

Apply for a Revolving Loan Fund

Are you involved in a community or economic development project that promotes jobs or community facilities that benefit rural areas? Download an application to apply.

Additional Information

  • Find more information on the Revolving Loan Funds program, eligibility requirements, and terms through our program summary brochure (PDF, 58 KB).
  • Or contact Lyle Korver at 800-766-2099 or for economic development information.