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Eligibility Website for Rural Development Programs

Rural Development Guaranteed Programs Matrix


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Rural Energy for America Program  (REAP) 
 

Click Here to view all and to obtain application information for your specific type of renewable energy project.

Description:

Section 9007 of the 2008 Farm Bill established a grant, loan, and loan guarantee program to assist eligible farmers, ranchers, and rural small businesses in purchasing renewable energy systems and for making energy efficiency improvements.

Eligible projects include those that derive energy from a wind, solar, biomass, or geothermal source, or hydrogen derived from biomass or water using wind, solar, or geothermal energy sources. Awards will be made on a competitive basis for the purchase of renewable energy systems and to make energy improvements

Energy Efficiency improvements could include replacing diesel irrigation motors, upgrading poultry houses, or retrofitting tobacco barns with new burners.  Installing more installation, new HVAC systems or more efficient windows for rural small businesses can also be eligible for grant funds.

Grant Purposes:

Grant funds must be used to finance and develop small and emerging private business enterprises in rural areas. The following 
is a list of some of the eligible purposes: 

  • Purchase and installation of equipment
  • Construction and improvements
  • Energy audits
  • Permit fees
  • Professional service fees
  • Feasibility Studies
  • Business plans
  • Retrofitting
What Can You Not Do With These Funds?

Grant funds cannot be used to:

  • Purchase land

  • Provide working capital
  • Research and Development
  • Residential improvements
  • Vehicles
  • Waste collections
Who Is Eligible?

These grants can be made to farmers, ranchers, and rural small businesses.  Farmers or ranchers must receive more than 50% of their annual income from their farming operation.  Rural Small businesses must be the SBA definition of a small business.  To see if you qualify as a small business, please go to the SBA web site at http://www.sba.gov/services/contractingopportunities/sizestandardstopics/summarywhatis/index.html.  

The following table is a summary of the SBA definition of a small business:

Industry Group

Size Standard

Manufacturing 500 employees
Wholesale Trade 100 employees
Agriculture $750,000
Retail Trade $6.5 million
General & Heavy Construction (except Dredging) $31 million
Dredging $18.5 million
Special Trade Contractors $13 million
Travel Agencies $3.5 million (commissions & other income)
Business and Personal Services Except: $6.5 million
  • Architectural, Engineering, Surveying, and Mapping Services
$4.5 million
  • Dry Cleaning and Carpet Cleaning Services
$4.5 million

Your business may have different standards, so it is suggested that you check the SBA site for your specific business type based on your NAICS code.  You can find your NAICS code at this site, http://www.naics.com/search.htm

Other Criteria:

  • The applicant must have a demonstrated financial need.
  • Applicants must be located in a rural area.
FY 2009 Allocation

The 2009 allocation for the grant program will be published in the Federal Register.  The application deadline for the grant program will be set in the Funding Notice..  The application deadline for loans or loan and grant combinations was June 1, 2008.  In FY '09, the mandatory funding as specified in the new Farm Bill is $55,000,000.  Applications for the grant program are not being accepted for the 2009 program at this time. 

Loan applications will be accepted and processed when the completed application is received in the Georgia State Office.

Go to the USDA Energy Home Page for more information by clicking here.

Loan and Grant Amounts:

Grants for Renewable Energy Systems have a maximum limit of $500,000 and a minimum of $2,500.  Grants for Energy Efficiency Improvements have a maximum of $250,000 and a minimum of $1,500.  The maximum loan is $10,000,000 or 50% of project costs, whichever is less.

Where Do You Apply?

Individuals may contact the Renewable Energy Coordinator at (207) 990-9127. To obtain additional information and/or to request an application, please click here.  Applications or information requests should be mailed to:

 John F. Sheehan
 Business & Cooperative Specialist
 USDA, Rural Development
 967 Illinois Avenue, Suite 4
 PO Box 405
 Bangor, ME  04402-0405
 (207) 990-9168
 (207) 990-9129
 john.sheehan@me.usda.gov

 

 

To obtain application information for your specific type of project, please go here.

 

Grant Requests with project costs under $200,000 Grant Requests with project costs over $200,000 Guaranteed Loan Requests with project costs under $200,000 Guaranteed Loan Requests with project costs between $200,000 & $600,000 Guaranteed Loan Requests with project costs over $600,000

General Information:

2009 Energy Fact Sheet

Brochure- ALL Rural Development  Energy Programs

To go to the USDA National Energy web site and get other forms, please go here.