Rural Development Loan

Rural Development Loans

Cavalier Rural Electric provides Rural Development Loans to qualified/eligibility borrowers.

The Rural Development program was created;

To enhance the development and expansion of business and jobs that benefit rural areas.
To provide financing options for new or expanding businesses or community facilities
To leverage member owner equity and other financing sources

Eligibility Requirements;

Project funding must be guaranteed by a minimum of 20% by applicant.
Security for loan proceeds will be in the form of collateral of existing property. Liens will be recorded with the proper county offices.
The business or community facility must be located in a rural area without restrictions to the service area.
Eligible projects must demonstrate an impact on local economy and critical needs.
Recipients may be subject to an audit of loan proceeds
Applicant will be required to sign an Assurance Agreement stating they are and will continue to comply with the Civil Rights Act

Repayment Terms;

Project Evaluation Criteria;

Job creation and Retention
The Quality of jobs created or retained including wage rates, benefit package offered, potential for longevity in employment, and ability to advance in the organization
Impact on area economy and environment
Leveraging of other funds, both private and public
Financial strength
Likelihood of success
Management strength, expertise, and past performance
Evidence of a market and marketing plans