Renewable Energy Systems and Energy Efficiency Improvement Guaranteed Loans and Grants help agricultural producers or rural small businesses reduce energy costs and consumption in order to meet the nation's critical energy needs.

Agricultural producers (individual or entity directly engaged in the production of agricultural products that get 50 percent plus of their gross income from agricultural production) or small rural businesses (must meet SBA definition of Small business) that are private entities, sole proprietorships, partnerships, corporations, or cooperatives. The applicant must also be located in a rural area that has a population of less than 50,000.

Post application purchase of equipment (except ag tillage equipment/vehicles)

Post application constructin

Feasibility Studies and Business Plans

Professional service fees (excluding application preparation)

Permit fees, energy audits, and costs associated with the environmental review

Working Capital (guaranteed only)

Land purchase (guaranteed only)

Grant funds cannot exceed 25 percent of eligible project costs. Guaranteed loans cannot exceed 50 percent of eligible project costs. Combination guaranteed loan and grant cannot exceed 50 percent of eligible project costs.

Renewable: A minimum grant of $2,500 and a maximum grant of $500,000. A minimum guaranteed loan of $5,000 and a maximum guaranteed loan of $10,000,000.

Efficiency: A minimum grant of $1,500 and a maximum grant of $250,000. A minimum guaranteed loan of $5,000 and a maximum guaranteed loan of $10,000,000.

Consider the following definitions:

Energy Efficiency: Replacement of equipment and/or imporvements to a facility, building, or process that will reduce energy consumption.

Renewable Energy: Derived from wind, solar, biomass, geothermal, or hydrogen derived from these sources.

Biomass: Any organic material that is available on a renewable or recurring basis, including agricultural crops, trees grown for energy production, wood waste, wood residues, plant residues/fibers, animal wastes, fats, oil, and greases. Biomass does not include paper that is commonly recycled or unsegregated solid waste.

More information about this program can be found in the Renewable Energy & Energy Efficiency Guaranteed Loan and Grant Brochure (PDF) or by visiting our national webpage.

Contact our State Office for more information.