People’s Energy Cooperative supports economic development in the rural communities we serve by providing low-interest gap financing.

Applicant Eligibility

• The Cooperative is an equal opportunity lender and requires all loan recipients to adhere to all equal opportunity laws.
• All applicants will be considered based on creditworthiness and the strength of their business plan. Business expansion projects will also be considered based on historic financial health.
• Generally, the Cooperative’s financial participation requires owner equity and will not exceed that of other funding sources.

Eligible Projects

• Projects should have the support of the community, demonstrating tangible benefits consistent with the Cooperative’s economic development objectives.
• Commercial and industrial development including building construction and expansion, machinery and equipment purchases, and real property improvements.
• Community facilities development including health care, educational facilities, and business incubators.
• Business and community infrastructure in support of economic development including sewer, water, and streets.

Terms

• The minimum loan amount is $10,000.
• The maximum loan amount and interest rate may vary by program and shall be determined on a case-by-case basis by the Cooperative’s Board of Directors (BOD).
• The maximum term is ten years.
• Adequate security shall be required as determined by the Cooperative’s BOD.

Application Process

The application is available upon request by contacting Gwen Stevens at (507) 367-7015 or by email at gstevens@peoplesrec.com and requires a project description, financing plans, a list of forms of security to be used to collateralize the loan, projected economic impact of the project, and pertinent financial information.

The Cooperative requires sufficient supporting documentation to determine the overall feasibility of the project. At a minimum, the Cooperative will require a complete business plan as is typically required by a commercial lending institution.  Three years of projected financial statements are an important part of the business plan. If you need assistance in writing a business plan, please contact the Rochester Small Business Development Center at www.rochestersbdc.com or by phone at 507-285-7536.

Cooperative staff will meet with the applicant(s) to discuss the project and collect any additional information needed. The Cooperative’s BOD will approve or deny the application at its monthly board meeting. The application process requires 60 to 90 days.