More than a power source: Brunswick Electric typifies commitment of cooperatives to support rural communities

Rural Cooperatives, July-August, 2003 by Steve Thompson

The utility is required to re-lend the funds, at zero-percent interest, to an eligible third party. These third-party recipients may be private or public organizations having corporate and legal authority to incur debt. They can include businesses, nonprofits, municipalities and other entities. Eligible purposes include:

* Business expansions and business start-ups, including cost of buildings; equipment, machinery, land, site development and working capital;

* Community infrastructure necessary for economic development and job creation purposes;

* Community facilities and services necessary for economic development and job creation purposes;

* Medical facilities and equipment to provide medical care to rural residents;

* Educational facilities and equipment to provide training and job enhancement skills to rural residents to facilitate economic development;

* Business incubator projects to assist in developing emerging enterprises.

Priority is given to financing third-party recipient projects that are physically located in rural areas having a population of less than 2,500 people.

Funding Business Development Centers

Brunswick Electric Membership Corporation (BEMC) development affiliate, the Rural Consumer Services Corporation (RCSC), was selected by the National Rural Electric Cooperative Association (NRECA) to participate in developing a video presentation and "toolkit" for utility co-ops on promoting economic development. The following is an overview of the Business Development Center project, excerpted from material provided to NRECA:

Leveraged Funds/Source

North Carolina Electric Membership Corporation
zero-percent economic development loans, to RCSC,
guaranteed by BEMC, for the construction of the
Winnabowand Tabor City buildings                         $950,000
  BEMC 5-percent economic development loan
to RCSC for the construction of the Winnabow
building                                                 $128,326
  For the construction of the Whiteville building and
access road (which are owned by BEMC and leased to
RCSC):

  USDA Rural Economic Development Loan
  (repaid)                                               $100,000
  North Carolina Technological Development
  Authority                                              $185,000
  North Carolina Rural Economic Development Center
  Inc                                                     $30,000
  USDA Industrial Development Grant                       $32,000
  Columbus County, N.C., provision of in-kind services
  to build the road to the facility                       $32,000

Other Partners

The ongoing management of RCSC Business Development Centers is made possible by the continuing partnership between BEMC, RCSC and the Small Business Development Centers at two local community colleges. Southeastern Community College provides on-site management for the Whiteville and Tabor City facilities, and Brunswick Community College in Supply provides the management for the Winnabow center. Both community colleges also provide business counseling services and entrepreneurial training programs.