Financing Eligibility Requirements

The REED Fund provides gap financing to both for-profit and non-profit entities, as well as to local government organizations. REED will not fully fund a project, but offers assistance to help organizations reach their financing goals. Projects funded by REED must support economic development efforts within communities. The impacts of these projects may include (but are not limited to):

• Expanding, retaining, or attracting businesses.
• Retaining or creating jobs.
• Improving the quality of life of communities.
• Adding value to locally produced raw materials (agriculture).
• Supporting future local and regional growth.  
• Extending the infrastructure needed for new development.

Learn more about eligibility criteria for borrowers and projects to see if a REED Fund loan is a good fit for your needs. Contact us if you have any questions, or reach out to your local electric cooperative to review your project needs. 

Types of Projects Funded by REED 

The REED Fund supports several project types throughout the year. A few key areas its loans support include:

• Business and industry: Loans that support growth and development, contributing to employment. 
• Value-added agriculture: Projects that add value to local agriculture production through innovation, improved services, further processing, or marketing.
• Community development: Community services and quality-of-life projects that contribute to resident retention and attraction. 
• Healthcare: Investments that increase access to healthcare and improve medical services for residents. 
• Housing: Loans that support multi-family rental housing with evidence of a broad base of community support and planning.

REED works with small and medium-sized businesses, community organizations, non-profits, government groups, and local cooperatives. Organizations of all sizes can apply for a REED loan.

Criteria for REED Financing 

REED Fund loans are open to anyone in the geographic coverage area, regardless of power supplier. The goal of the REED Fund is to support economic development across the region.

Loans issued by the REED Fund must reasonably assist the project and may not exceed 50% of the project's total cost. These loans cannot be used solely to refinance existing debt from other lenders. REED Fund applications are thoroughly analyzed prior to approval.

That said, REED also wants to make the application process easy to navigate. Use the checklist below to confirm that your project is a good fit for a REED Fund loan.  

REED loan applicants must:

• Be legal entities. (I.e., sole proprietors, corporations, cooperatives, LLCs, or units of government.) 
• Be able to show business development, job retention or creation, or other tangible benefits to the community or the region.
• Invest a minimum of 10% equity in cash or assets.
• Provide assurance of willingness and ability to repay the loan.
• Submit a complete application, including supporting materials as outlined in the application.

All borrowers are encouraged to integrate energy efficiency into facilities and construction. Additional conditions may apply.

A $100 application fee is due at the time of submission. A 1% loan origination fee is also deducted from the proceeds when a loan is issued. Loans are for “take-out financing” at project completion.

How to Apply

Applications are available from your local electric cooperative (see map below) or through an online request form. You can also call 605-256-4536 or e-mail reedinfo@eastriver.coop with information on your project.

Even if your project is still in development, contact the REED Fund with any questions. Starting the conversation early can help determine if your plans are a good fit for our loan funds. 

REED Service Territory