WEBSTER CITY — Just a month ago Webster City learned the former Natural Shrimp building, 401 Des Moines St., would be converted to a high-volume protein supplement factory run by Edible Gardens Prairie Hills LLC.

Ultimately, the 400,000-square-foot manufacturing facility will make 100 million units of the protein drink annually for an as-yet-unnamed launch customer.

On May 18, the City Council approved an application for a $1 million loan for Edible Gardens under the U.S. Department of Agriculture’s Rural Economic Development program. The no-interest loan, will run for a term of 10 years. Edible Gardens will use the money for unspecified factory equipment.

The loan is in addition to a $6.5 million incentive package provided by the City of Webster City. This loan will be funded exclusively by tax-increment financing, not taxes.

Steven Benne, vice president of development finance for Iowa Area Development Group of Des Moines, which aids business growth and expansion in Iowa, addressed the council, characterizing the USDA loans as “a unique, niche program in which utilities apply for a loan on behalf of a business.”

Webster City Municipal Utilities will apply on behalf of Edible Gardens. An application filed by Corn Belt Power Co-Op may potentially allow Edible Gardens to receive a total of $2 million.