PPEC establishes revolving loan fund

Paulding Putnam Electric Co-op information

PAULDING — The Paulding Putnam Electric Cooperative Board of Trustees has created a revolving loan fund whose goal is to encourage and foster area economic development within the electric cooperative’s service territory. The PPEC Board committed to placing $60,000 into a fund and is now looking for potential projects.

Here’s how the program works: The USDA would grant PPEC the initial amount of $300,000 for the revolving loan fund, but the money is only received after a project is accepted. After a project is chosen, Paulding Putnam would loan the money at zero percent interest. Projects can only be submitted by government agencies or non-profit entities such as Community Improvement Corporations. The money could be used for a number of purposes, from infrastructure needs to building a speculative building for potential investors.

Once the money begins to be repaid, PPEC’s Revolving Loan Fund Committee would then begin accepting applications to assist for-profit entities within its service territory by offering gap lending.

Erika Willitzer, marketing and economic development director for PPEC, explained how electric co-op Midwest Electric established a similar loan fund and was able to loan money for infrastructure that ultimately led the City of Celina to land the Ferguson Distribution Plant.

“This was a huge win for Mercer County and it all began with the local co-op lending a helping hand,” Willitzer said. “I don’t see why Paulding Putnam Electric can’t do the same for its territory and the communities it serves.”

George Carter, CEO/general manager for PPEC, said he is 100 percent behind the fund and encourages governmental entities to discuss the possibility of working with the cooperative.

“Communities within our service territory can benefit from zero percent interest financing through this program and not tie up their traditional financing avenues or use general funds,” Carter noted. “Additionally, down the road as the program matures, this Revolving Loan Fund can provide assistance to local businesses that are looking to expand and may need additional low-cost funding as part of their larger financing needs.”

PPEC services more than 12,900 members/owners in Paulding, Putnam, Defiance, Van Wert and Allen counties in Ohio and Adams and Allen counties in Indiana. Those who have a project or want more information on the loan fund can call 800.686.2357 or email ewillitzer@ppec.coop.

“We’re striving to be a resource for all the counties we serve, and we’re hoping that, by beginning this process, we’ll be able to have a true economic impact,” Willitzer said. “Eventually, we hope (that) by creating this fund, it will lead to more jobs and prosperity.”