REED Fund FAQs

Access to housing is an important part of economic development, so the REED fund approves loans to increase housing inventory in rural areas. It focuses on multi-family rental properties. REED will not issue individual housing loans. It is not a mortgage provider and will not issue a loan to renovate a single-family home.

There are multiple ways to reach out to the REED Fund. You can fill out an online contact form or call us directly at 605-256-4536. The REED Fund team can also be reached via e-mail at reedinfo@eastriver.coop. Please reach out if you have any questions before or during the application process. Our team is here to help.

The REED Fund works closely with commercial banks, nonprofit loan funds, and government agencies to provide financing. It works with several organizations to help communities finance projects and support economic development in their areas.

Some REED Fund projects may be eligible for USDA funding. The REED Fund works closely with the USDA to assist with financing needs. Contact us today to discuss your project and the role the USDA could play in helping you secure a loan. 

While REED approves loans for projects regardless of the service provider, applicants must operate within the geographic areas of member cooperatives. If your electric cooperative is not a REED member, your project will likely not be eligible for a loan.

The REED Fund is currently accepting new electric cooperatives that want to join its service area. Contact us to learn about the role electric cooperatives play in REED financing and how your cooperative can make a difference through economic development.

The REED Fund can work with non-profit organizations to help them reach their financing goals. If a project supports the REED Fund's mission to improve communities through economic development initiatives, it may be eligible for financing.

The REED Fund will finance infrastructure projects to support economic development efforts. Quality infrastructure can attract businesses to rural areas, creating jobs for the residents of local communities. REED loans have been used to improve roads, increase utility access, and support emergency services.

REED Fund loans can be used to cover value-added agricultural projects. This includes projects that provide improved services, further processing, or innovations in local agriculture systems. The REED Fund will not approve loans for traditional agriculture production.

The Rural Electric Economic Development (REED) Fund provides gap financing to businesses, non-profits, and government organizations. Each loan issued by REED supports economic growth in some way, through business expansion, job creation or retention, improved quality of life, and infrastructure improvements. The REED Fund is a 501 (c) (3) nonprofit corporation composed of several electric cooperatives in South Dakota and Minnesota.

Healthcare is an important part of economic development, which is why the REED Fund supports health and medical projects. Healthcare loans can create jobs in communities while making it easier for rural Americans to get the treatment they need. While the REED Fund issues loans for healthcare projects, it does not provide healthcare to individuals.

Applicants can request an application online through the REED Fund’s intake form. The REED team will then reach out to start the loan review process. Applicants will receive a response from REED, regardless of whether their loan is approved. Any information submitted will be held in confidence.

REED applicants must be legal entities (ex., LLCs, government offices, or non-profit organizations) that can prove their projects will contribute to business development, job creation, or quality of life in some way. As a general rule, applicants must invest a minimum of 10% equity in the project and prove a willingness and ability to repay the loan. All borrowers are encouraged to integrate energy efficiency into their projects. Additional conditions may apply.

The REED Fund works with electric cooperatives throughout South Dakota. Some of its electric cooperatives also support Western Minnesota. Check whether your electric cooperative is involved with the REED Fund and the various communities this non-profit organization serves. The REED Fund is accepting new electric cooperatives, which would expand its service area.

Every project is unique and has specific financing needs. The REED Fund issues loans of all sizes, ranging from $100,000 to $1 million projects. REED is designed to provide gap financing, helping organizations secure funding to launch their projects. REED loan funds may not exceed 50% of the total cost, and borrowers must have at least 10% equity in the project. 

REED works with small to medium-sized businesses, non-profit organizations, and government offices to provide gap financing for various economic development projects. Any organization that falls within its geographic coverage area can apply for financing, regardless of the electric power supplier. If the loan meets the lending eligibility requirements, the application can proceed to the review process.

The REED Fund offers several loan types to support business growth and expansion, healthcare investments, and quality-of-life improvements. It also approves loans for multi-family rental housing renovations and investments. While REED does not fund loans for traditional production agriculture, it does approve value-added projects for agricultural innovation, improved services, and advanced processing.