Tuesday, April 28, 2015

USDA Awards Loan to T.I.P Rural Electric for GRMC

The U.S. Department of Agriculture announced the 2015 recipients of the zero-interest loans for economic development and Brooklyn’s T.I.P. Rural Electric Cooperative was chosen for a $300,000 award. T.I.P.’s application sought funds for the Grinnell Regional Medical Center’s emergency room renovations.
The funding is being provided through USDA’s Rural Economic Development Loan and Grant (REDLG) program. Through the REDLG program, the USDA provides zero-interest loans and grants to utilities that lend funds to local businesses for projects to create and retain employment in rural areas. These revolving loan funds broaden the program’s reach and create a multiplier effect for its impact. Eligible applicants are USDA Rural Utilities Service borrowers.
“The cooperative had been looking for the right project to make this loan application and the GRMC emergency department renovation was the perfect opportunity,” says Larry Boesenberg, general manager, T.I.P. Rural Electric Cooperative. “This is a win-win for both organizations. The board members of the cooperative approved the additional $60,000 loan match requirement toward the hospital’s renovations. GRMC will receive a zero-interest loan for $360,000, paid back over 10 years. We are committed to improvements that benefit our members. The cooperative will be able to take the funds repaid by GRMC’s loan and create a revolving loan fund for other programs or services needed in our service area.”
Agriculture Secretary Tom Vilsack announced the award of $31 million in loans and grants for organizations in Iowa and 11 other states to promote rural economic development. When making the announcement Vilsack explained, “These infrastructure investments will help rural residents start or expand businesses. The funds can be used for a wide range of needs.”
“The renovations to the ED and creation of a new urgent care clinic are major components of our strategic plan, costing $2.3 million,” says Todd C. Linden, GRMC president and CEO. “We have already raised $1 million, so we created the Manatt Family Urgent Care. After completion of the urgent care clinic, we have $750,000 available toward the $1.9 million needed for the emergency department renovations. Of these funds, $546,616 was raised from the Blueprint for Health and special events. This loan is definitely a shot in the arm toward our goal to make improvements in the GRMC emergency department.
“GRMC has been cautious about adding debt to fund renovations. We count on philanthropy to bridge gap from subpar reimbursement rates so that the community has access to excellent healthcare services. This loan program is another example of the amazing community support for GRMC to meet the needs of area residents,” Linden says.
“I also feel this shows the value of cooperatives in communities like Brooklyn. Iowa came together as a state with a cooperative spirit, valuing the importance of working together for a common good,” Linden says. “We want to thank the board of directors at T.I.P. Rural Electric Cooperative for their loan of $60,000 in addition to the USDA economic development loan of $300,000. This makes funds accessible to the hospital for our project and those funds stay in the community. It’s good for the local economy and for the hospital.”
T.I.P. Rural Electric Cooperative is a member-customer providing electric service to over 6,300 meters and over 1,765 miles of line. It is a progressive utility serving customers in Tama, Iowa, Poweshiek, Keokuk, Benton, Mahaska, Jefferson, Johnson, Wapello and Washington Counties. T.I.P. Rural Electric Cooperative is a true cooperative, organized June 1, 1938. It is headquartered in Brooklyn, Iowa, and is a private, non–profit electric utility owned by the members it serves; and was established to provide reliable electric service at the lowest possible cost.
Since the beginning of the Obama Administration, the REDLG program has helped create or save more than 32,000 rural jobs, provided almost $338 million in economic development assistance, improved manufacturing capability, expanded healthcare and educational facilities and helped expand or establish almost 1,200 rural businesses and community projects.


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