Round Lake Vineyards & Winery receives loan from Federated Rural Electric

The $150,000 loan will assist in financing new septic system for winery's renovation and expansion projects.

ROUND LAKE — Federated Rural Electric in Jackson assisted the Round Lake Vineyards and Winery with a $150,000 Revolving Loan Fund loan. The winery has a building project and renovation underway that requires an updated septic system for a permanent kitchen, additional indoor restaurant seating and expanded banquet seating.

Federated and the winery signed the 10-year loan paperwork Nov. 2; the winery also provided matching funds with a loan from the Southwest Initiative Foundation in Hutchinson. As funds are repaid to Federated, they can be loaned to other organizations.

Round Lake Vineyards and Winery is a commercial vineyard and production winery with a full-service restaurant.

“On an annual basis we grow approximately 50 tons of grapes and produce 4,000 to 5,000 cases of wine,” stated owner Scott Ellenbecker. “We serve thousands of local and vacation traffic annually in our tasting room, event building and restaurant.”

“This economic development funding helps us finance a new septic system,” added co-owner Jenny Ellenbecker. “With the renovation of three buildings, this system will tie all four buildings together in a common septic system for long-term efficiency at reduced maintenance costs.


“For five years we’ve been cooking out of a food trailer. This has limited our event and food service,” she shared. “With this renovation, we’ll have two new spaces: an 80-seat banquet room and a seasonal picnic space with a permanent indoor food and bar service building; in the winter this building will be used as a warming house.”

“Federated initially applied for the zero-interest loan and then charges up to 1% handling to the organizations,” stated Scott Reimer, Federated’s general manager. “As these organizations pay back their loans, this money goes into a revolving loan fund to assist other organizations for economic development or community facilities.”

The recipient also pays for the loan’s closing costs and 1% interest.

Federated has a long history of economic development. Since 1992, Federated has provided economic development dollars totaling $4.462 million. This contributed to keeping 1,163 jobs and securing 642 jobs in the area. More specifically, Federated’s revolving loan started in 2009 with a loan from the U.S. Department of Agriculture (USDA) for $244,000 that financed a Ceylon fire truck and Tenhassen Township Hall. Then in 2016, Federated secured additional USDA revolving loan funds and added a matching 20%, totaling $421,515 toward new Heron Lake and Round Lake fire trucks. Since then Okabena has used the revolving loan funds for its fire department brush fire truck, payloader and shop building.

This year Federated also assisted the Fox Lake Conservation League to buy the former Alliant power plant land to create a park.

Over the past four years, USDA Rural Development has invested nearly $2.9 million in REDLG funding to support community facilities and small business development and expansion in rural communities throughout Minnesota.

For more information on USDA Rural Development programs, visit

Federated is a Touchstone Energy Cooperative serving 6,800 members in Jackson and Martin counties.

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