DES MOINES — The federal government is pumping nearly $13 million into Iowa businesses, manufacturers, hospitals and community projects, including several major investments in Northern Iowa, as part of a new round of economic development assistance announced Friday, October 9, 2026.
The U.S. Department of Agriculture announced the funding through its Rural Economic Development Loan and Grant program, with projects ranging from factory expansions and medical equipment purchases to new healthcare facilities and agricultural infrastructure.
Among the beneficiaries are Rosenboom Machine & Tool in Milford, Garner Dental Group in Hancock County, Humboldt County Memorial Hospital and a new manufacturing operation in Sibley.
The largest Northern Iowa employment announcement involves Rosenboom Machine & Tool, which is expected to create 78 jobs through an expansion supported by a new $1 million federal loan.
The financing comes on top of $1.35 million in Iowa state tax credits previously approved for the Milford manufacturer, bringing the combined value of the two forms of government-backed assistance to more than $2.35 million.
As NorthIowaToday.com previously reported, Rosenboom is undertaking a $19.07 million expansion involving new manufacturing space and equipment. The project is expected to create 78 jobs with qualifying wages of $25.54 per hour.
The latest federal financing will flow through Iowa Lakes Electric Cooperative, which received the $1 million loan to help Rosenboom purchase equipment and expand production.
The 78 jobs cited in Friday’s announcement appear to be associated with the previously announced expansion, rather than a separate round of hiring.
In Humboldt, three USDA awards totaling $2.3 million will support modernization of radiology and surgical services at Humboldt County Memorial Hospital.
Corn Belt Power Cooperative received a $1 million loan for the hospital, while Midland Power Cooperative received another $1 million loan and a $300,000 grant for a revolving loan fund that will also support hospital improvements.
The project is expected to create four jobs.
In Garner, Prairie Energy Cooperative received a $133,750 loan to replenish a revolving loan fund. The initial financing will help Garner Dental Group purchase new imaging and scanning equipment for its dental clinic.
Another $884,800 federal loan will support Northwest Financial Consulting LLC and MBN Pallets LLC in Sibley, where equipment purchases and construction of a new wood bedding production facility are expected to create six jobs.
The USDA also announced major manufacturing assistance elsewhere in Iowa, including a $1 million loan to support Iowa Pipe Fittings Company LLC near Oakland in Pottawattamie County.
That project is expected to create 68 jobs as the company expands its manufacturing capacity, purchases equipment, modernizes technology infrastructure and establishes an on-site training classroom.
Other awards include $1 million for Hawkeye Molding Company in Roland, with 10 jobs anticipated; $1 million for a new dental clinic in Monticello, with six jobs projected; and $1 million to help Montgomery County Memorial Hospital purchase a dental practice and establish an integrated rural health clinic in Red Oak, creating seven jobs.
Additional USDA assistance will support a grain dryer expansion in Arcadia, industrial manufacturing improvements in Lamoni, a new community center in Larchwood, childcare development in Stuart and a retail facility associated with Family Crisis Centers in Sioux Center.
The federal funding is being distributed through rural electric cooperatives and telecommunications providers, which act as intermediaries in financing eligible projects.
Most of the awards are loans expected to be repaid, while several grants will establish or replenish revolving loan funds that can provide financing for future projects.
USDA Rural Business-Cooperative Service Administrator Gimmie Jo Jansonius announced the investments alongside Iowa Rural Development State Director Mike Sexton.
The officials said the financing is intended to strengthen rural healthcare, promote manufacturing and encourage job creation.
“USDA partners with Iowa co-ops to champion investment in rural hospitals, manufacturing, and ag infrastructure,” Sexton said.
The announcement coincides with National Cooperative Month, which highlights the role cooperatives play in rural economic development.
The 16 awards listed in USDA’s release total approximately $12.88 million, slightly below the agency’s stated figure of more than $12.9 million.
The projects collectively carry projections for approximately 185 new jobs and the retention of another 20 existing childcare jobs, although actual hiring will depend on the individual projects moving forward.
For Northern Iowa, the latest announcement means additional government-backed financing for manufacturing operations, medical facilities and other businesses already investing in the region.
It also adds to a growing list of publicly supported economic development projects in Iowa, where federal loans, state tax incentives and other assistance are being used to encourage private investment and employment growth.