Loan and Grant Program to Provide Relief for Rising Energy Prices
Monday March 31, 2008
Help is on the way for farmers and rural small businesses seeking to combat rising energy prices.
USDA Rural Development is making loan guarantees and grants available to agricultural producers and rural small businesses to purchase and install renewable energy systems or to make energy efficiency improvements.
Kentucky Highlands Investment Corporation is one of the financial institutions that can originate the loans. In addition, it can help provide guidance for the grant applications.
"This loan and grant program is good for the economy and the environment," said Jerry Rickett, president &CEO of Kentucky Highlands. "It couldn't come at a better time for farmers and rural business owners who are feeling the pain of increased energy prices."
Eligible applicants may seek loan guarantees to cover up to 50 percent of a project's cost, not to exceed $10 million. Grants are available for up to 25 percent of a project's cost, not to exceed $250,000 for energy efficiency improvements and $500,000 for renewable energy systems.
USDA will issue one grant solicitation for two separate competitions. For the first competitive window, grant-only applications must be submitted no later than April 15. For the second competitive window, grant-only applications must be submitted no earlier than April 16, and no later than June 16.
Applications for loan guarantees, as well as those for loan/grant combinations must be completed and submitted to the appropriate USDA Rural Development State Office no later than June 16.
Eligible projects include purchasing a renewable energy system and/or making energy efficient improvements. The small business and project must be located in a rural area, but the business headquarters may be elsewhere.
"This is the perfect opportunity for business owners who are evaluating their energy consumption and want to make a change," said Scott Maas, business/cooperative specialist and Section 9006 energy coordinator for the USDA-Rural Development's
State Office. "They may want to replace heating or lighting systems or even put in new manufacturing lines."
Here are several resources for additional information and assistance:
- Visit the USDA website at www.rurdev.usda.gov;
- Click on http://www.rurdev.usda.gov/rbs/farmbill/index.html for examples on the loan and grant application process;
- For loan applications, visit http://www.rurdev.usda.gov/ia/rbcs_RE-EE_guaranteed.html
- For grant applications, visit http://www.rurdev.usda.gov/ia/rbcs_RE-EE_grants.html
- Contact the USDA - Rural Development State Office in Lexington at 859-224-7435 to receive fact sheets on both programs; or