USDA Rural Development invites applications for renewable energy loans and grants

UPDATE, Aug. 25, 2008: The application deadline for these programs has passed.

Agriculture Secretary Ed Schafer announced during an international renewable energy conference this spring that USDA will accept $220.9 million in loan and grant applications within USDA's Renewable Energy Systems and Energy Efficiency Improvements Program.

"As demand for energy rises, these renewable energy loans and grants help farms and rural small businesses increase their investment in renewable energy initiatives," said Schafer, speaking at the Washington International Renewable Energy Conference. "Energy efficiency wisely applies our resources, and energizes wealth-creation opportunities with more jobs throughout rural America."

Loan guarantees and grants are available to agricultural producers and rural small businesses to purchase and install renewable energy systems or to make energy efficiency improvements.

Eligible applicants may seek loan guarantees to cover up to 50 percent of a project's cost, not to exceed $10 million. Grants are available for up to 25 percent of a project's cost, not to exceed $250,000 for energy efficiency improvements and $500,000 for renewable energy systems. USDA Rural Development has invested $674 million in more than 1,763 renewable energy and energy efficiency projects since 2001. These investments include ethanol, biodiesel, wind, solar, geothermal, methane gas recovery systems and biomass.

Grant-only applications must be submitted and no later than June 16, 2008. Applications for loan guarantees, as well as those for loan/grant combinations must be completed and submitted to the appropriate USDA Rural Development State Office no later than June 16, 2008. In South Dakota, applications may be sent to USDA Rural Development State Office, 200 Fourth St., SW, Federal Building, Room 210, Huron, SD 57350.

Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA's Web site.

Information provided by the U.S. Department of Agriculture.
June 2008