Grain Drying Loan
The Board of Directors approved a loan pool to assist farmers in buying equipment. The goal of this program is to encourage members to install electric grain drying equipment or add aeration equipment to existing equipment. This concept will use the added kWh sales and the interest on the money loaned to gain revenue for the Cooperative and provide a service to our members.
The loan pool will initially be $100,000.
Loan terms:
- Interest rate one percent over the Basin Electric temporary investment rate as of January 1 of each year.
- Owner provides 25% of the cost of equipment being financed.
- Four year repayment schedule.
- Annual payments, including interest, will be due November 1 of each year.
- The amount of loan balance allowed any one member would not exceed $10,000.
If an electric service is required, it will be installed according to Oliver-Mercer Electric's existing policies. The costs associated with electrical service can be included in the loan package.
The Cooperative will not handle the electric grain dryers or aeration systems, unless members cannot purchase the equipment in the immediate area.
The loan documents required would be as follows:
- Loan Contract
- Promissory Notes
- Disclosure Statement
- Security Agreement
- Uniform Commercial Code Financing Statement.
Please contact our office for further information.
