Branson/Tri-Lakes News: Electric co-op spins federal loans into community development

The zero-interest loan is financed through Branson-based White River Valley Electric Cooperative Inc., which received a $250,000 USDA Rural Economic Development Grant and must provide 20 percent in matching money for the additional $50,000 of the loan.

Developmental Connections is a political subdivision of Taney County that funds nonprofit agencies serving individuals with developmental disabilities, according to Max Lytle, Developmental Connections director. The resource center, to be used by nonprofits such as Developmental Center of the Ozarks, Judevine Center for Autism, Tantone Industries and Brookcare for residential, employment, training, therapy and other services, is 95 percent complete, Lytle said.

DCO, for example, will provide adult day care and children therapy services in the building.

“We’re the middle man on this,” said Cy Murray, White River Valley Electric’s director of community development.

The construction loan must be paid back to the electric co-op within 10 years. Murray said White River Valley Electric is allowed to keep the money in a revolving loan fund to provide future economic development loans for community infrastructure and facilities.

Loan restrictions state that recipients must be nonprofits and use the funds to create jobs. Murray said Developmental Connections will add seven jobs at the center.

The Developmental Connections loan is not the first awarded by White River Valley that will go back into its revolving loan fund. Skaggs Community Health Center received two zero-interest loans totaling $1.1 million via White River Valley in November. One of those loans, totaling $360,000, will be paid back to the electric cooperative’s revolving fund as well.

“White River can take that money and reloan it to other people … for community development,” said Stephen M. Erixon, chief executive officer of Skaggs. “It not only benefits Skaggs now as a one-time gift, but it also continues to keep giving in our community.”

The second loan to Skaggs was a $740,000 USDA Rural Economic Development Loan. According to a White River Valley news release, these loans can be used for a variety of projects including business expansion, community development, incubator projects, medical and training initiatives, and project feasibility studies. Skaggs Community Health will use the loan to purchase a new linear accelerator to treat cancer patients.

Erixon said the loans will create more than 10 jobs at Skagg’s new cancer treatment center. “But you don’t know all the spin off,” he added. “As more people stay in the area for their cancer treatments, the long-term growth could mean 20 to 25 more jobs.”

Previous recipients of zero-interest USDA loans through the electric cooperative include Ozark Mountain Underground Storage in Branson and Hampton Center in Theodosia.

Murray said Rural Economic Development Loan applications are submitted for approval to USDA on a competitive basis.[[In-content Ad]]