KCTC, Pleasantview, secure USDA grant

From left, Ethan Pitt (Iowa Area Development Group,) Jim Hershberger (Pleasantview,) Luke Horak (KCTC,) Jeffrey Schmidt (Pleasantview,) Steve Yotty (KCTC,) Larry Swartzendruber (Pleasantview,) Casey Peck (KCTC,) and Steve Rich (KCTC) (Photo submitted)

KALONA — Kalona Cooperative Technology Company (KCTC) and Pleasantview, a Continuing Care Retirement Community (CCRC) in Kalona, closed a USDA Rural Economic Development loan last month, totaling $297,899. The loan program is designed to grant rural communities funds after the completion of a local project, in this case, renovations to the assisted living and independent living services.

“They are expanding and remodeling their facilities and have offered a portion of their expansion costs to help secure the money for the city of Kalona and surrounding communities,” a news release from KCTC said. “Selecting a catalyst project such as the Pleasantview expansion is a requirement by the USDA for the program. Pleasantview will receive the funding in the form of a 0% loan. As loan payments are made, revenue will not go back to the USDA, instead, funds will remain in the community for future projects.”

KCTC sponsored the loan application, which requires endorsement from a local utility provider. The process involved a 20% cash match, a payment that was split between KCTC and its telecommunications partner, Aureon.

Once payments are made on the original loan, KCTC said organizations and businesses would be eligible to apply for low-interest loans from the revolving loan fund to finance community and business projects. The interest generated from those projects is deposited back into the revolving loan fund for further use, with the account held and administered by KCTC.