My Business
Economic Development
Coast Electric supports economic development in the communities it serves in two ways:
Building infrastructure necessary to reliably support business and industry needs today and tomorrow.
The cooperative works aggressively to match prospective economic development projects with U.S. Department of Agriculture rural development loans and grants.
USDA Rural Development Loans
The purpose of the U.S. Department of Agriculture Rural Economic Development (RED) Loan and Grant program is to leverage private and other public funding to expand the economic base of rural communities. The RED loan program provides loans to local utilities which in turn pass through the loans to local businesses for projects that will create and retain employment in the areas Coast Electric serves.
As designated rural communities, Harrison, Hancock and Pearl River counties are eligible to benefit from the federal funding.
CEPA Fund Business Development Loan Program
Coast Electric plays an active role in the development of our communities. Our board and staff provide leadership and financial participation in the economic development and business expansion of our service territory and our community. Through the creation of a revolving loan fund, known as CEPA FUND, Coast Electric is seeking to improve the quality of life in our area by supporting projects that create and retain job opportunities for residents; provide technical assistance, education or medical care to businesses or residents; that further the use of advanced telecommunications services and computer networks for medical, educational and job training services; and that upgrade the public infrastructure to improve the economic development potential of areas and the health, safety and medical care of residents.
Typically, eligible projects for loans can include any business venture, governmental public body, or entities involved in a community or economic development project that promotes job creation and/or provides needed community services that benefit areas, including loans to for-profit businesses and loans to not-for-profit entities. Revolving Loan Fund proceeds may be used for land, fixed assets, machinery and equipment or working capital needs. Working capital loans will only be considered in conjunction with the purchase of other assets as specified. Each project must meet certain criteria before a project will be considered eligible for funding from the CEPA Fund.
Ineligible uses of Coast Electric’s Revolving Loan Fund include pre-development costs, refinance of existing debts; illegal activities; legal activities that, in the opinion of Coast Electric’s Board of Directors adversely affect Coast Electric’s Revolving Loan Fund interests; general improvement loans related to normal replacement needs of a business and unrelated to business expansion/job creation; and loans to projects which have alternative sources of financing at reasonable interest rates.
The minimum loan will be $10,000 and the maximum CEPA Fund loan will be determined by our loan committee. Coast Electric’s Revolving Loan Fund is happy to work with other lenders and sources to optimize the leverage of outside resources and enhance the chances for approval of a CEPA Fund loan request.
Interest rates on Coast Electric’s Revolving Loan Fund loans will not exceed the prevailing prime rate as published in the Wall Street Journal and will be determined based on the evaluation of ability to repay, and the necessity of below-market financing to make the project happen. A loan servicing fee of up to 1 percent of the loan balance will be charged to help cover administrative costs of Coast Electric’s Revolving Loan Fund. Borrowers will be charged for loan closing costs, attorney’s fees, filing fees, etc., as necessary to complete loan documentation. All loan fees will be addressed in the loan agreement between Coast Electric and the loan recipient.
The term of a Coast Electric Revolving Loan Fund loan shall be determined by Coast Electric’s Board. Loan deferments of up to two years may be considered on a project-by-project basis. The Loan Review Committee will make a recommendation concerning the term of the loan, depending upon project need, the expected life of the security and the applicant’s ability to repay. The term of the loan will not exceed the expected life of the asset(s) being used as collateral.
Loans will be collateralized, as determined necessary by Coast Electric’s Board, to secure its participation in the project and can include, but is not limited to, mortgages, liens, letters of credit and/or personal and corporate guarantees. Other terms and conditions may be required as determined by the Coast Electric Board of Directors, depending upon individual circumstances, including but not limited to assignment of leases, subordination agreements, life insurance, etc. The loan recipient will be required to maintain appropriate insurance on all secured assets and name Coast Electric’s Revolving Loan Fund as loss payee.
- Contact Russ Carothers at Coast Electric for a loan application or use this link to complete and submit your application.
- Russ Carothers can be reached at [email protected] or (228) 363-7278
- Applications will be accepted during normal business hours. Applicants do not have to be a member of Coast Electric or be served by Coast Electric.
- A staff person of Coast Electric will review applications for completeness and present complete applications to the Loan Review Committee.
- A loan committee will analyze each project and make a recommendation to Coast Electric’s Board of Directors.
- The Coast Electric Board of Directors will review revolving loan fund applications at their regularly-scheduled monthly board meeting. However, if needed and at the board’s option, the board may call a special meeting to review a loan application.
- Coast Electric Board of Director’s shall have final authority to approve or deny all revolving loan fund requests and to determine appropriate terms and conditions.
- For approved loans, a loan agreement addressing all of the terms and conditions, including monitoring procedures, repayments, delinquencies, defaults and remedies for that project will be prepared by Coast Electric’s Revolving Loan Fund. In addition, Coast Electric’s Revolving Loan Fund shall have prepared all notes, mortgages, security agreements, UCC filings and other legal documents necessary to close the loan.
