Reed Fund

What Reed Fund does

Reed Fund (legal entity Rural Electric Economic Development, Inc.) is a private, non-profit 501(c)(3) community development financial institution (CDFI) headquartered in Madison, South Dakota, established in 1996 after seven founding electric cooperatives obtained USDA Rural Economic Development Loan and Grant (REDLG) approval. REED operates as a revolving loan fund governed by 27 member electric cooperatives across South Dakota and Minnesota, issuing below-market and zero-interest loans to rural economic development projects and recycling principal and interest repayments into new loans. Since inception the fund has originated approximately $135 million in loans across 415+ deals, generating an estimated $1 billion in total project impact (a roughly 7.4x capital multiplier), financing 3.35 million square feet of facilities and supporting 10,400 jobs while maintaining a 1.5% lifetime loan loss rate.

The fund runs five distinct loan programs: Community Loans (fire protection, infrastructure, recreation), Healthcare Loans (clinics, hospitals, senior care), Business Loans (industrial parks, manufacturing, retail), Agri Business Loans (processing, producer-owned ag enterprises), and Housing Loans (multi-family, senior living, residential development). Underwriting is administered through headquarters in Madison, SD, with origination support from the 27 member cooperatives that serve as referral partners. REED's primary capital source is the USDA REDLG program, through which it has received 87 grants totaling $21,082,793 as of January 2024, supplemented by repayments and modest below-market interest from non-REDLG originations.

The operating model is sales-led and partnership-driven: applications are submitted online or via cooperative referral, and REED co-funds projects with commercial and other economic development lenders to leverage private investment. Outstanding loans stood at $42.86 million and loan commitments at $8.2 million as of year-end 2023. REED has a small core staff (three named personnel: Economic Development Manager Eric Fosheim and Loan Officers Janis Dailing and Angie Neises), is a member of the Opportunity Finance Network, and participated in the National Rural Economic Developers Association's 2026 D.C. fly-in.

Name

Reed Fund

Legal name

Rural Electric Economic Development, Inc.

Website

https://reedfund.coop

Company type

Private

Founded year

1996

Operating status

Operating

Headcount range

1–10 employees

Short description

REED Fund is a 501(c)(3) revolving loan fund, governed by 27 electric cooperatives across South Dakota and Minnesota, that provides below-market and USDA REDLG-backed zero-interest loans for rural business, community, healthcare, housing, and agricultural development projects.

Ownership category

akta.pro rank

Product category

Community Development Lending

NAICS

Other Investment Pools and Funds (5259), Funds, Trusts, and Other Financial Vehicles (525)

SIC

Federal & Federally-Sponsored Credit Agencies (6111)

akta.pro primary industry

Private Credit — Infrastructure Debt & Project Finance (FSAHAJAJ)

Keywords

• Revolving loan fund
• Rural development financing
• Community development lending
• Economic development loans
• Cooperative lending services

Headquarters

HQ city

Madison

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Others

Revenue model

1. Loan Interest Revenue: REED Fund generates revenue through interest payments on loans issued to borrowers. The revolving loan model means that principal and interest repayments are re-lent as new loans, creating a sustainable cycle of capital deployment. Some loans are issued at 0% interest through USDA REDLG programs, while others carry favorable below-market interest rates.

Pricing tiers

Go-to-market motion1 record

Distribution channels2 records

Marketing channels8 records

Core offering

REED Fund is a revolving loan fund that provides below-market and zero-interest loans to rural businesses, community organizations, healthcare facilities, agricultural enterprises, and housing developers across South Dakota and Minnesota. Loans are originated directly by REED and through its 27 member electric cooperative partners, with capital sourced largely from USDA Rural Economic Development Loan and Grant (REDLG) program awards. Typical loan sizes range from $40,000 to $2+ million, and REED co-funds with commercial lenders so that each $1.25 of REED capital typically leverages roughly $10 of total project investment.

Product overview

Reed Fund (Rural Electric Economic Development, Inc.) is a community development financial institution (CDFI) that operates as a revolving loan fund for rural communities. The organization offers five distinct loan programs: Community Loans for fire protection, infrastructure, and quality-of-life projects; Healthcare Loans for medical facilities and services; Business Loans for commercial and industrial development; Agri Business Loans for agricultural processing and producer-owned enterprises; and Housing Loans for multi-family, senior living, and residential development. The loan programs are delivered through a network of 27 member electric cooperatives across South Dakota and Minnesota, leveraging USDA Rural Economic Development Loan and Grant (REDLG) program funding.

Differentiator

Problem solved

Functional benefit

Products and services

• Community Loans Financing for community projects including fire protection (trucks and buildings), emergency services, recreation and cultural facilities, streets, and water/wastewater infrastructure that support quality of life and economic development in rural areas. Targeted at rural municipalities, nonprofits, fire districts, and community organizations in South Dakota and Minnesota.
• Healthcare Loans Financing for rural hospitals, clinics, assisted living facilities, ambulance services, medical equipment, and healthcare infrastructure serving rural communities in South Dakota and Minnesota. Available to rural healthcare providers and nonprofit health organizations.
• Business Loans Financing for business development, industrial parks, manufacturing firms, retail and service businesses, and commercial projects that create jobs and economic growth in rural South Dakota and Minnesota. Targeted at rural SMBs and commercial developers.
• Agri-Business Loans Financing for agricultural processing businesses, grain handling, agronomy services, and producer-owned agricultural enterprises supporting rural farming communities in South Dakota and Minnesota. Targeted at agribusinesses and producer-owned cooperatives.
• Housing Loans Financing for multi-family housing, elderly and assisted living facilities, housing developments, single-family home construction, and housing site development to address housing needs in rural South Dakota and Minnesota. Targeted at housing developers, multi-family property owners, and senior living operators.

Quantifiable outcome

• $135 million in loans originated since 1996 generating $1 billion in total project impact
• +4 more outcomes

Named customers14 records

Segments7 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Nine partnerships are on record, tiered minor and core.

• Opportunity Finance NetworkminorStrategic or Co-development Partner · 1 January 2024REED Fund displays Opportunity Finance Network logo indicating membership or affiliation with this organization supporting community development financial institutions.
• Meeker Cooperative Light & Power AssociationcoreStrategic or Co-development Partner · 1 January 2023Joined REED Fund as new member in 2023. Meeker Cooperative has served central Minnesota since 1935 with over 9,000 electric accounts across six counties (Meeker, Kandiyohi, McLeod, Renville, Stearns, and Wright).
• East River Electric Power CooperativecoreStrategic or Co-development Partner · 1 January 1996East River Electric Power Cooperative is the host organization for REED Fund headquarters in Madison, SD. As a generation and transmission cooperative, East River delivers wholesale power to 24 rural electric distribution cooperatives and one municipally-owned electric system in eastern South Dakota and western Minnesota.
• FEM Electric AssociationcoreStrategic or Co-development Partner · 1 January 1996One of seven founding member cooperatives that initiated REED Fund development in 1994. FEM Electric serves Faulk, Edmunds, and McPherson counties in north-central South Dakota with over 2,000 miles of line.
• H-D Electric CooperativecoreStrategic or Co-development Partner · 1 January 1996One of seven founding member cooperatives that initiated REED Fund development in 1994. H-D Electric serves Clear Lake, South Dakota area.
• Northern Electric CooperativecoreStrategic or Co-development Partner · 1 January 1996One of seven founding member cooperatives that initiated REED Fund development in 1994. Northern Electric serves Brown and Spink Counties in northeast South Dakota with over 5,000 consumers.
• Southeastern Electric CooperativecoreStrategic or Co-development Partner · 1 January 1996Formerly Turner-Hutchinson Electric Cooperative, one of seven founding members. Serves southeastern South Dakota including Yankton and Bon Homme counties.
• Whetstone Valley Electric CooperativecoreStrategic or Co-development Partner · 1 January 1996One of seven founding member cooperatives that initiated REED Fund development in 1994. Whetstone Valley Electric serves Milbank, South Dakota area.
• Central Electric CooperativecoreStrategic or Co-development Partner · 1 January 1996Formerly Intercounty Electric Association, one of seven founding members. Touchstone Energy Cooperative serving southeastern South Dakota with over 4,700 members.

Scale indicators10 records

Recent moves7 records

Expansion highlights5 records

Broad incumbents

• AgCountry Farm Credit Services: Cooperative agricultural lender serving farmers, ranchers, and rural businesses in the Upper Midwest - similar cooperative governance and rural focus overlapping with REED's member network.
• GreenStone Farm Credit Services: Largest agricultural cooperative lender in Michigan and Wisconsin, with similar cooperative governance and rural Midwestern footprint as REED Fund.
• National Cooperative Bank (NCB): Cooperatively owned bank serving cooperatives and member-owned enterprises across the U.S., with rural and economic-development mission aligned to REED's cooperative model.
• CoBank: Major cooperative bank serving rural America's agricultural, infrastructure, and rural utility sectors - broader portfolio than REED but overlapping geographic and mission alignment through cooperative governance structure.

Direct peers

• Rural Community Assistance Corporation (RCAC): National CDFI providing financing, training, and technical assistance to rural communities across multiple states - directly comparable revolving loan fund model serving rural geographies.
• Capital Impact Partners: National nonprofit CDFI providing capital and development services to underserved communities - comparable mission-driven community development lender with revolving loan model.
• Dakota Resources: South Dakota-based nonprofit community development and economic finance corporation serving rural communities, with overlapping CDFI-style mission and similar geography to REED Fund.

Others

• Opportunity Finance Network (OFN): National CDFI trade association providing advocacy, capital, and capacity-building - REED Fund is affiliated with this organization, which represents the broader community development finance industry.
• USDA Rural Development: Federal agency administering the REDLG program through which REED receives zero-interest capital - upstream funding partner whose program decisions directly drive REED's lending capacity.
• Great Plains Institute: Regional nonprofit advancing energy and community resilience in the Great Plains, with mission alignment to rural community economic development in REED's service territory.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights7 records

Customer concentration

• Xtwitter.com/REEDFundEconDev
• YouTubeyoutube.com/channel/UC9dlNeHN46B2bn0qxY79-fg
• Facebookfacebook.com/reedfund
• LinkedInlinkedin.com/company/reed-fund

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Reed Fund