Freeborn Mower highlights benefits of rural USDA program locally
Published 8:25 pm Friday, January 19, 2024
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Freeborn Mower Electric Cooperative leaders shared the success from their participation in the USDA’s Rural Economic Development Loan and Grant program Friday during a visit from U.S. Sen. Amy Klobuchar.
Klobuchar, D-Minn., is the incoming chair of the Senate Agriculture Committee and wanted to hear how the program has worked for the cooperative and businesses it has worked with, as well as how the interactions have been with the USDA. The program provides funding for rural projects through local utilities.
Freeborn Mower President and CEO Jim Krueger said the cooperative utilizes both the loan and grant program and combined has taken almost $3 million in USDA funds and turned it into $7 million to local businesses and organizations.
Through the revolving loan fund alone, the cooperative has taken the original $800,000 grant given to the utility through the USDA, added in matching funds and established a revolving loan fund, and it has been able to give out $5 million. It has given out about $2 million in zero-interest pass-through loans.
Bryan Skogheim, director of business development and energy solutions at Freeborn Mower, said the businesses have used the money for everything from equipment and expansion to job creation and retention.
And it has helped create in excess of 100 jobs, Krueger said, noting the cooperative has used the program as a gap financing tool to aid development. While they have done a few loans in Mower County, most have been in Freeborn County.
Dan and Bryce DeBoer of Pro Manufacturing, Pro Trucking and Pro Advantage of Albert Lea talked about their company and how their use of the program has helped them grow.
Dan DeBoer said their first core value of the company is that they believe the company was given to them to help people. He spoke of goals they have to give back a certain amount of money to the community each year.
They said Pro Manufacturing has about 25 employees, and between all three companies they have about 70.
Bryce DeBoer talked of equipment the company has recently purchased or will be purchasing through the USDA funding to help in efficiency at the company. One robot now cuts all of their tubing, and their new loan will be for a new automated sandblasting unit that will free up an employee from an undesirable job to other duties.
The DeBoers said the lower interest rate they are able to achieve through the program has been helpful. Krueger said right now the interest rate is 4 1/2 percent, while at one time it was as low as 2 percent.
In addition to the discussion about the USDA program, Krueger led Klobuchar on a tour of the cooperative.
He said the cooperative, which has about 20,000 members, had a good year.
When Klobuchar asked how rates were doing, Krueger said unfortunately rates aren’t going down, as costs for transformer parts are increasing. He also noted long wait times.
Prior to coming to Albert Lea, Klobuchar also spent time in Owatonna and Faribault.