WASHINGTON — Senator Chuck Grassley said today that the U.S. Department of Agriculture, Office of Rural Development is awarding four loan guarantees totaling $230,951,000 that will benefit Iowa through the Electric Guaranteed Loan program. This is part of more than $1 billion in electric loans being distributed across the country to strengthen infrastructure in rural communities.
"It's great to see USDA investing in rural America's utilities and cooperatives," Grassley said. "These funds will help improve service to rural customers."
The Electric Loan program assists rural areas in the financing of construction of electric distribution, transmission, and generation facilities, including system improvements and replacement required to furnish and improve electric service, as well as demand side management, energy conservation programs and on-grid renewable energy systems.
The Office of Rural Development will distribute the loan guarantees as shown below.
· Associated Electric Cooperative in Springfield, Missouri will receive a loan guarantee of $40 million for projects in Appanoose, Davis, Des Moines, Henry, Jefferson, Keokuk, Lee, Louisa, Lucas, Marion, Monroe, Van Buren, Wapello, Washington, Wayne as well as parts of Missouri and Oklahoma. The life of the loan guarantee is 30 years.
· Associated Electric Cooperative in Springfield, Missouri will receive a loan guarantee of $160 million for projects in Appanoose, Davis, Des Moines, Henry, Jefferson, Keokuk, Lee, Louisa, Lucas, Marion, Monroe, Van Buren, Wapello, Washington, Wayne Counties as well as parts of Missouri and Oklahoma. The life of the loan guarantee is 32 years.
· East-Central Iowa Rural Electric Cooperative in Urbana will receive a loan guarantee of $12 million for projects in Benton, Black Hawk, Bremer, Buchanan, Clayton, Delaware, Fayette, Iowa, Johnson, Linn and Tama Counties. The funds will help serve 680 new consumers, build 46 miles of new distribution lines, make improvements to 284 miles of distributions lines, and make other system improvements. The life of the loan guarantee is 34 years.
· United Electric Cooperative in Savannah, Missouri will receive a loan guarantee of $18,951,000 for projects in Page, Ringgold and Taylor Counties as well as parts of Missouri. The funds will help serve 1,127 new and existing consumers, build 131 miles of new distribution lines, make improvements to 96 miles of distribution lines and make other system improvements. The life of the loan guarantee is 35 years.