Revolving Loan Funds Support Your Community
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 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.
- Manufacturing machinery and equipment
- Work equipment
- Residential Housing Projects (limits apply)
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.