ID board seeks $1M loan
Published 3:00 am Tuesday, February 16, 2016
The Brundidge Industrial Development Board has applied for a $1.36 million loan from South Alabama Electric Cooperative in support of development in the city’s North Industrial Park.
Don Dickert, Brundidge ID board member, said the loan is a zero interest loan through the South Alabama Electric Cooperative Rural Economic Development Loan and Grant Program (REDLG) and will assist with the development of Magnolia Vegetable Processors LLC in the city 222-acre industrial park.
The REDLG programs provide funding to rural projects through local utility organizations. Under the program, USDA provides zero interest loans to local utilities, which they, in turn, pass through to local businesses for projects that will create and retain employment in rural areas. The ultimate recipients repay the lending utility directly.
Dickert said the Brundidge ID loan will have a 10-year term and, hopefully, a two-year moratorium on payment in order for the industry to get up and going.
“When the loan is paid back, the money will go into a revolving fund and continue to help fund projects within the South Alabama Electric Cooperative service area that will create or retain rural jobs,” Dickert said. “The $1.36 million loan will help provide the means for 60 new jobs over a three-year period, with 20 jobs immediately.
Dickert said the total cost of the Magnolia Vegetable Processors project is expected to be $5,060,000 with additional financing through Troy Bank & Trust and equity from MVP. “We are fortunate that South Alabama Electric Cooperative has made this resource available to us for the benefit of our new industry and its future employees,” Dickert said.