The YMCA Project is in the process of seeking a 10-year, interest-free loan through the Rural Economic Development Loan and Grant Program (REDLG) and the first phase of a two-phase process has been approved.
This loan is critical to the project in order to turn pledges that will be collected over the next several years into money to begin construction. The interest-free REDLG loan will save approximately $200,000 in interest that would be paid under a traditional loan, and it will allow 100% of the donations received to be incorporated into the YMCA facility.
The REDLG loan requires a sponsorship through a qualified utility company. Consolidated Electric, based in Mexico, has reviewed the YMCA project and has agreed to sponsor the loan with some minor conditions. The first condition was a guarantee from the Van-dalia Recreation Corporation to ensure repayment of the loan, which was approved at the June 6 Vandalia Recreation Corporation meeting. The other items requested were information regarding the Rual Morris Foundation pledge and support from the City of Vandalia should Rual Morris not complete their pledge. The Rual Morris Foundation has fully committed to the YMCA project, so the motion of support from the City of Vandalia is just an added layer of security. In addition, the Rual Morris Foundation amended their pledge to be payable over 10 years instead of 15. This pledge change coincides with the 10-year duration of the REDLG loan.
The second phase of the approval process is submitting a variety of information to the United States Department of Agriculture (USDA). The additional information is due on June 30 and the project will be reviewed by the USDA over the summer months.
The YMCA Project would like to thank Consolidated Electric, the Rual Morris Foundation, and the City of Vandalia for their efforts in securing the first phase of the REDLG loan. The completion of this project will enhance the area and provide a facility for all ages to enjoy.
Donations are still needed for the project. Visit the project website, www.emoymca.org to access a pledge form or email firstname.lastname@example.org with any questions. Become a part of this community-changing project by making a donation.