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USDA Seeks Applications for Renewable Energy and Energy Efficiency Loans and Grants

Name
Kathy Smith
City
Nashville
Release Date

USDA Rural Development State Director Bobby Goode encourages rural small businesses to apply for loans and grants to support renewable energy and energy efficiency projects.

“Investing in renewable energy and energy efficiency helps farmers, ranchers, and rural small businesses save money and strengthen their bottom line,” Goode said.  “It also provides jobs now, creates economic opportunity, and leads to a more secure energy future.”

USDA is accepting Rural Energy for America Program (REAP) applications for: 1) loans and grants for renewable energy systems and energy efficiency improvements, and 2) grants for energy audits and renewable energy development assistance.

Eligible agricultural producers and rural small businesses may use REAP funds to purchase and install renewable energy systems and make energy efficiency improvements.  Eligible renewable energy systems include energy from wind, solar, renewable biomass (including anaerobic digesters), small hydro-electric, ocean, geothermal, or hydrogen derived from these renewable resources.

Energy audits and renewable energy development assistance grants are available to state, tribal, or local governments; institutions of higher education; rural electric cooperatives and public power entities.

Although applications are accepted year-round, application deadlines for fiscal year 2016 grant funds are:

  • Renewable energy system and energy efficiency improvement less than $20,000 – November 2, 2015 (1st Round) or May 2, 2016 (2nd Round)
  • Renewable energy system and energy efficiency improvement over $20,000 – May 2, 2016
  • Energy audits and renewable energy development assistance – February 1, 2016

The REAP program was created in the 2002 Farm Bill.  Because of the success of the program, Congress reauthorized it in the 2014 Farm Bill with guaranteed funding of no less than $50 million annually for the duration of the five-year bill.  The 2014 Farm Bill builds on historic economic gains in rural America over the past seven years while achieving meaningful reform and billions of dollars in savings for taxpayers. 

Through the REAP program, USDA has supported nearly 11,000 renewable energy and energy efficiency projects nationwide since the start of the Obama Administration.  The Department has provided more than $367 million in grants and $354 million in loan guarantees to agricultural producers and rural small business owners during this period.

USDA Rural Development is moving investments to rural America with housing, business and infrastructure loans and grants to create jobs and strengthen rural economies with an emphasis to assist areas of persistent poverty.  Since 2009, the agency has assisted more than 1.5 million Tennessee families and businesses in 230 communities in all 95 counties of Tennessee, investing more than $5.4 Billion through affordable loans, loan guarantees and grants.

For more information on USDA Rural Development programs available in Tennessee visit us online at www.rd.usda.gov/TN; or to speak to a Business Program Specialist regarding REAP, call 615.783.1341.