Renewable Energy and Energy Efficiency Grants

Objective
To reduce energy costs and consumption.

Applicant
Agricultural producers and small business in rural areas.

Uses
Equipment, construction, or improvements, energy audits, permit and professional fees, feasibility studies, business plans and retrofitting.

Population
All areas except cities of more than 50,000 and their immediately adjacent urban or urbanizing areas.

Loan/Grant
Grant, loan or combination grant/loan.

Terms/Conditions
Grant will not exceed 25 percent of eligible project costs with $2,500 minimum with maximum of $500,000 renewable energy and $250,000 energy efficiency.

Business and Industry Loan Guarantees

Objective
Create jobs and stimulate rural economies by providing financial backing for rural businesses.

Applicant
Business applies through Federal or State Chartered banks, credit unions, savings & loan associations.

Uses
Most legal business purposes including acquisition, start-up and expansion of businesses that create rural employment. (Agricultural production is not an eligible use.)

Population
All areas except cities of more than 50,000 and their immediately adjacent urban or urbanizing areas.

Loan/Grant
Loan guarantee

Terms/Conditions
Lender and borrower negotiate terms Interest rate tied to published rate that may change no more often than quarterly.

Intermediary Relending Program Loans

Objective
Finance business facilities and community development projects in rural areas.

Applicant
Public bodies, nonprofit corporations, cooperatives, federally recognized Indian tribal groups apply to Rural Development State Office.

Uses
Community development projects, establishment or expansion of businesses, creation or saving rural jobs.  Recipients make loans to third parties.

Population
Rural areas and places with populations of less than 25,000.

Loan/Grant
Direct loan

Terms/Conditions
The intermediary makes loans to businesses from its revolving loan fund on terms consistent with security offered.  Intermediary pays 1% for 30 years.

Rural Business Enterprise Grants

Objective
Finance and facilitate the development of small and emerging private business enterprises.

Applicant
Public bodies; nonprofit corporations, federally recognized Indian tribal groups apply to Rural Development State Office.

Uses
Buy and develop land, provide technical assistance, access streets and roads, parking areas, utility and service extensions, rural distance learning networks. If used to create a revolving loan fund, recipients make loans to third parties.

Population
All areas except cities of more than 50,000 and their immediately adjacent urban or urbanizing areas.

Loan/Grant
Grant

Terms/Conditions
When grant funds are used for revolving loan fund (RLF) the intermediary makes loans to businesses from its RLF on terms consistent with security offered.

Rural Economic Development Loans and Grants

Objective
Finance economic development and job creation in rural areas.

Applicant
Electric and Telephone Cooperatives apply to Rural Development State Office.

Uses
Business startup or expansion projects that create rural jobs.

Population
Rural areas and places with populations of 2,500 or less.

Loan/Grant
Direct loan

Terms/Conditions
The intermediary, electric or telephone cooperatives, make loans or grants to profit or non-profit business and public bodies for rural economic development and/or job creation projects. Loans are 0% for 10 years.

Value-Added Producer Grants

Objective
Matching grant program to assist agricultural producers enter into value-added activities.

Applicant
Independent producers, farmer and rancher cooperatives, agricultural producer groups and majority-controlled producer-based business ventures.

Uses
Funds can be used for planning purposes such as conducting feasibility studies or feasibility business plans or it can be used as working capital to help start the the operations of a venture.

Loan/Grant
Grant

Terms/Conditions
Applicants must meet specific selection criteria.  Grants are awarded on a competitive basis.  Funds cannot be used to build facilities or purchase equipment.  There is a dollar for dollar matching requirement.