Federated Rural Electric helps the city of Okabena with a loan

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OKABENA – The Federated Rural Electric Grid, Jackson, helped the city of Okabena with a $ 75,000 loan from the Cooperative Revolving Loan Fund. The city of Okabena will buy a loader for outdoor and renovation work. In addition, Okabena plans to build a store and a warehouse.

The Federal Republic and the city of Okabena signed the 10-year loan documents on July 19. As the funds are returned, they can be transferred to a loan to other organizations. This is the second time Okabena has used the Federated Revolving Loan Fund.

“Federated initially applied for a zero-interest loan and then charges organizations up to 1% service fees,” said Scott Reimer, general manager of Federated. “As these organizations pay off their loans, this money goes into a revolving loan fund to help other organizations with economic development or utilities.”

The recipient also pays the closing costs of the loan and 1% interest.

Since 1992, Federated Rural Electric has provided $ 3.8 million in economic development. The revolving loan began in 2009 with a $ 244,000 loan from the United States Department of Agriculture (USDA), which financed a Ceylon fire engine and Tenhassen Township Hall. In 2016, Federated received additional USDA revolving credit and added a corresponding 20% ​​totaling $ 421,515 to new Heron Lake and Round Lake fire trucks. Since then, Okabena has used a revolving loan for its brush fire truck.

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