USDA Rural Development State Director Colleen Landkamer today announced funding for 28 projects throughout Minnesota that will help rural small businesses and agricultural producers reduce energy usage and costs in their operations. The funding is available through the Rural Energy for America Program (REAP) and will be used to make energy efficiency improvements and install renewable energy systems.
“These investments in clean energy support the broader rural economy by encouraging the production of renewable energy sources and infrastructure of energy efficiency measures," Landkamer said. "The Rural Energy for America Program helps businesses create jobs, helps farmers and rural businesses reduce their carbon footprint, and helps the country move closer to energy independence."
USDA is providing $43.2 million in loan guarantees and $11.6 million in grants through REAP for projects in every state, as well as in the Virgin Islands, the Western Pacific and the Commonwealth of Puerto Rico. $395,350 in grants will go towards 28 rural small businesses and agricultural producers in Minnesota alone.
Ardolf Enterprises Inc., a certified cleaning agency in Faribault, Minn., has been selected to receive a $10,912 REAP grant to purchase and install a 14.625 kW photovoltaic (PV) solar array. The system is expected to replace all electrical usage – generating more than 16,000 kWh of energy – and will save the business over $2,000 per year. The project also supports USDA’s dedication to underserved populations by investing in a high-poverty area.
Staple Food Corp, a family-owned grocery store providing full-service goods including fresh produce, meats, and cheese, is receiving a $19,693 REAP grant to replace its fluorescent lighting system with a light-emitting diode (LED) system. Multi-deck open refrigeration cases will also be replaced with enclosed, energy efficient cases. The new system is expected to save the Staples, Minn., business $10,123 annually and reduce energy usage by 218,734 kWh annually. That is enough energy to power over 21 homes.
In addition to grants, USDA also guarantees loans for a minimum of $5,000 and maximum of $25 million. Applicants are encouraged to apply through the REAP loan guarantee program for larger-scale projects. Grant and guaranteed loan combinations are also available.
Since 2009, REAP has helped finance more than 1,000 renewable energy and energy efficiency projects throughout Minnesota. During this period, USDA has provided more than $40 million in grants and loan guarantees to agricultural producers and rural small business owners.
Congress created the REAP program in the 2002 Farm Bill. Because of the program's success, Congress reauthorized it in the 2014 Farm Bill with guaranteed funding of at least $50 million annually for the duration of the five-year Farm Bill.
USDA Rural Development also invests in housing, water and wastewater treatment, community facilities, local foods, and broadband. Since 2009, USDA has invested over $6 billion in rural community economic development throughout Minnesota across more than 40 programs.
For more information on USDA’s programs, visit www.rd.usda.gov/mn and contact your local area office.