USDA presents matching funds to KCEDC

The USDA presented matching funds to Kossuth County Economic Development Corporation (KCEDC) director Maureen Elbert. The funds will add to the Kossuth County Revolving Loan Fund started by the corporation over three years ago.

Randy Hildreth Rural Development Manager and Dr. Daniel Brown, State Director of Rural Development for the USDA were in Algona last Thursday to hand over a check for $99,000 bringing the total in the fund up to $209,348.

“We are happy to be able to provide these funds for the creation of the Kossuth County Revolving Loan Fund,” Hildreth said. “This fund will provide another resource to help local businesses grow and create jobs.”

One of the USDA’s functions locally is to assist critical needs identified by different counties across Iowa. According to Elbert, Kossuth County was one of the few counties in Iowa that didn’t have a Revolving Loan Fund available to help attract new business or help existing businesses grow.

“You have identified this to be a critical need,” Brown said. “On behalf or the 135 member team in Iowa, we are happy to reinvest tax dollars into your community.”

Unlike other USDA projects the revolving loan fund will be controlled and administered locally.

“We partner with communities, our funds are leveraged with local money,” Brown added. “We don’t pick your projects, you get local control.”

A little over three years ago Elbert identified the need to start a fund necessary to stay competitive in the economic development world here in Kossuth County.

“We knew we needed a revolving loan fund,” she said. “We took small baby steps to get here, but we are excited to put this together.”

The small steps and years of work produced large donations. To date the corporation has received $38,348 from local banking institutions, $22,000 from local businesses and $50,000 from the Kossuth County Board of Supervisors. With the $110,348 generated locally combined with the $99,000 matched by the USDA, the fund has a good start.

Elbert said the funds are available to existing businesses or new start up businesses. There is an application fee and people seeking funds should be prepared to show two to three years financials or three year projected financials if it’s a start-up business and a good business plan. You can pick up applications for revolving loans at participating local banks or at the KCEDC office as early as late November or early December Elbert said.

“There are many revolving loan funds throughout the state and when managed properly, have proven to add jobs,” Hildreth said. “The revolving loan funds have been an excellent return on the local investment.”

Members from the USDA Rural Development department handed Kossuth County Economic Development Corporation Director Maureen Elbert a check for $99,000 last Thursday in front of the court house. The funds will be added to the $110,348 raised locally to start a local revolving loan fund. Pictured (front row left to right) Randy Hildreth, Doctor Daniel Brown, Maureen Elbert. (Second row) Eric Von Muenster, Todd Schwartz, Conley Nelson, Jim Voigt, Julie Hall, Larry Sterk, Creighton Nelson and Chris Mercer.