Pella Cooperative Electric Association and Co-Line Welding, Inc. announced their successful application to secure a $1 million loan through the United States Department of Agriculture (USDA) Rural Economic Development Loan program (REDLG) to assist with a $6,675,000 building expansion for Co-Line.

The program provides zero-interest loans to rural utility providers, such as Pella Cooperative Electric, that in turn re-lend the money at zero interest to businesses within their communities. Pella Cooperative Electric utilizes the USDA’s REDLG program as one of the economic
development tools to promote economic growth, and help create and retain jobs in rural Iowa.

“As a member-owned electric cooperative, we’re in a unique position to utilize borrowing power for our local businesses that we serve. Any efforts we can make to contribute to our local economy is a win for us, for our members, and for the community – and we’re pleased to be able to partner with Co-Line on their project,” Pella Cooperative Electric Chief Executive Officer Jon Miles said.

Co-Line, started in 1979, is a family-owned metal fabrication and manufacturing business located in between Sully and Pella and is a member of Pella Cooperative Electric. Co-
Line houses high tech metal processing equipment and produces parts and products for many different industries including automotive, recreational, agricultural, heavy construction, communications, utility, and healthcare.

Currently, Co-Line has 300,000 square feet under roof and employs 200 people, and will build a 70,000 square foot building expansion.

“We are happy to partner with Pella Cooperative Electric and the USDA in our next expansion project,” said Faye Brand, co-owner. “It’s exciting to be part of business growth in rural Iowa by adding employees to our outstanding team as well as new technology, the latest equipment, and another building expansion.”

Timeline for the project is to start groundwork in spring 2021 with construction beginning later this year.
This is Pella Cooperative Electric’s thirteenth USDA economic development loan project, which has $5 million dollars of additional investment and helped retain and create over 100 jobs in Pella and surrounding communities through the program. This is the third USDA loan project between the electric co-op and the manufacturing company, totaling nearly $1.9 million in funds.