Pella Cooperative Electric Association and Co-Line Welding, Inc. are pleased to announce their successful application to secure a $1 million loan through the United States Department of Agriculture (USDA) Rural Economic Development Loan program (REDLG) to assist with a $6.7 million building and equipment expansion for Co-Line.
USDA’s REDLG program provides zero-interest loans to rural utility providers, such as Pella Cooperative Electric, that in turn re-lend the money at zero interest to businesses within their communities. Pella Cooperative Electric utilizes the USDA’s REDLG program as one of the economic development tools to promote community development, economic growth, and help create and retain jobs in rural Iowa.
“As a member-owned electric cooperative, we’re in unique position to utilize borrowing power for our local businesses that we serve. Any efforts we can make to contribute to our local economy is a win for us, for our members, and for the community – and we’re pleased to be able to partner with Co-Line on their project,” Pella Cooperative Electric Chief Executive Officer Jon Miles commented.
Co-Line, a family-owned business which started in 1979, is a metal fabrication and manufacturing business located in rural Iowa between Sully and Pella and is a member of Pella Cooperative Electric. Co-Line houses high-tech metal processing equipment and produces parts and products for many different industries, including automotive, recreational, agricultural, heavy construction, communications, utility, and healthcare. Currently, Co-Line has 300,000 square feet under roof and employs 200 people.
Co-Line is committed to providing outstanding customer service and always being in front of customer needs. To continue to meet that commitment, Co-Line will be adding a 70,000 square-foot building expansion equipped with the latest in fabrication and stamping technology.
“We are happy to partner with Pella Cooperative Electric and the USDA in our next expansion project,” said Faye Brand, co-owner. “It’s exciting to be part of business
growth in rural Iowa by adding employees to our outstanding team as well as new technology, the latest equipment, and another building expansion.”
Timeline for the project is to start groundwork in the spring of 2021 with construction likely beginning in early 2022. Included in the expansion, $3.4 million will be allocated to expanding the company’s north facility. This area is where the Brand home and original repair shop once stood before the 2007 tornado. Equipment and
technology purchases and improvements will complete the expansion project.
This is Pella Cooperative Electric’s 13th USDA economic development loan project and has spurred $5 million of additional investment and helped retain and create
over 100 jobs in Pella and surrounding communities through the program. This is the fifth USDA loan project between rural electric co-ops CIPCO and PCEA and the
manufacturing company, totaling $4.15 million in funds. This loan is not an SBA loan through the PPP program other local businesses in the area have received. It is a
0% interest loan that will be repaid in full over 10 years.