COOPERATIVE
FUNDING
Electric cooperatives are funded by lending bodies, such as the Rural Utility Service (RUS) and the
National Rural Utilities Cooperative Finance Corporation (CFC).
RURAL UTILITY SERVICE.
RUS is an agency in the U.S. Department of Agriculture (USDA) that makes loans to finance electric and telephone facilities in rural areas. RUS offers several types of financing for electric cooperatives: Municipal Rate Loan, Hardship Loan and Treasury Rate Loan. RUS is headed by an administrator and assigned responsibility for electric and telephone loan programs formerly performed by the Rural Electrification administration. No federal tax money is involved in RUS loans.
COOPERATIVE FINANCE CORPORATION.
The National Rural Utilities Cooperative Finance Corporation is a non-profit, co-op financing institution that provides its member-systems with an independent source of loan funds as a supplement to loans made by RUS. Incorporated in 1969, CFC is owned by its 1,054 member rural electric systems, 902 of which are distribution systems. CFC has a 23 member board of directors representing 11 districts from across the country.
