Rural Energy Grants

USDA Rural Development is accepting applications for grants and loan guarantees for farmers and rural small businesses to install renewable energy systems or to make energy efficiency improvements.

The grants will be administered through the agency’s Rural Energy for America Program (REAP).

The REAP grants can provide financial assistance for 25% of the eligible cost for the purchase and installation of a renewable energy system or to make energy efficiency improvements. The maximum grant for renewable energy systems is $500,000 or $250,000 for energy efficiency improvement projects. Grant applications are selected for funding on a competitive basis, and priority will be given to grant requests of $20,000 or less.

To be eligible for renewable energy and energy efficiency grants, applicants must be either agricultural producers earning at least 51 percent of gross income from agricultural production, or a small business, as defined by the U.S. Small Business Administration. Projects must be located in rural areas with a population of 50,000 or less.

The proposed renewable energy or energy efficiency technology must be commercially available in order to be eligible for the REAP program. Residential applications are not eligible.

In addition to grant funding, the REAP program offers loan guarantees to assist with financing for eligible projects. The maximum loan guarantee is 75 percent of eligible project costs and no more than $25 million. Combination funding from grants and loan guarantees is also available.

The Missouri state office has received approximately $1.2 million in REAP grant funds allocation. In order to be considered to receive funding from the Missouri state allocation of grant funds, applications must be received by USDA Rural Development not later than 4:30 PM on June 1, 2010. If an application is received by USDA after June 1, 2010, but before June 30, 2010, then the application may only be considered to receive funding from the national funding allocation. The deadline for grant applications to be considered for funding in FY 2010 is 4:30 PM on June 30, 2010.