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Rural Energy for America Program 
Loan Program

Description:

Section 9007 of the 2008 Farm Bill established a 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. 

Loan Purposes:

Loan 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
• Working Capital
• Land Acquisition

• Residential improvements
• Vehicles
• Waste collections
• Research and Development

• Applicants must be located in a rural area.

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 Amount and Terms:

Loans for Renewable Energy Systems have a maximum limit of $25,000,000 and a minimum of $5,000.   We cannot guarantee more than 75% of the total project cost or $25,000,000, whichever is less.

The repayment term for a loan for:   

(1)  real estate must not exceed 30 years;

(2)  machinery and equipment must not exceed 20 years, or the useful life, including major rebuilds and component replacement, whichever is less;  

(3)  combined loans on real estate and equipment must not exceed 30 years; and  

(4)  working capital loans must not exceed 7 years.

Loan Fees:

The maximum guarantee fee charged by the agency on the guaranteed loan is 1%.  The annual servicing fee has a maximum charge of .5% annually.  These fees will be published in the Federal Register each year.

Where Do You Apply?

Individuals may contact the Renewable Energy Coordinator at 770-267-1413 ext. 113. To obtain additional information and/or to request an application, please click here.  Applications or information requests should be mailed to:

Craig Scroggs
USDA Rural Development
111 E. Spring St.
Monroe, GA  30655

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

Last Updated : May 12, 2009