Rural economic development grants disaster (redg disaster) - grant

The U.S. Department of Agriculture Rural Housing Service awarded Prairie Energy Cooperative, a rural electric utility cooperative headquartered in Clarion, Iowa, $300,000 on May 27, 2026, under the Rural Economic Development Loans and Grants program (CFDA 10.854).

Prairie Energy Cooperative administers zero-interest financing to rural businesses and development projects across eleven Iowa counties. Eligible activities include business feasibility studies, business start-up costs, and business incubator projects. The award runs through May 27, 2028, and funds are deployed through the cooperative's established local infrastructure to identify projects with demonstrated potential for sustainable economic growth and job creation.

The Rural Economic Development Loans and Grants program provides funding for rural projects through local utility organizations. USDA funds pass through the utility intermediary to rural economic development projects that promote rural economic development and job creation. Eligible recipients—utilities such as Prairie Energy Cooperative—must be former Rural Utilities Service borrowers, nonprofit utilities eligible for Rural Development assistance, current Rural Development borrowers, or utilities with outstanding RUS loans or guarantees and no delinquent federal debt or bankruptcy proceedings.