USDA is making available loans and grants to agricultural producers and small businesses for investments in renewable energy and energy efficiency improvements.
The Renewable Energy and Energy Efficiency loan and grant program was established under Section 9006 of the 2002 Farm Bill. It provides loan guarantees and grants to agricultural producers and rural small businesses for the purchase and installation of renewable energy systems or for energy efficiency improvements.
Loan guarantees 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. These loans and grants are expected to reduce greenhouse gas emissions by 0.97 million metric tons, replace 821 million barrels of foreign oil and generate almost 2 million kilowatt hours of electricity annually. USDA has funded more than 800 loans and grants since the renewable energy program began in FY 2003.
Applications for grants must be completed and submitted to the appropriate USDA Rural Development state office postmarked no later than May 18. The deadline for submitting loan applications as well as for loan and grant combinations is July 2.