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Funding Available for Renewable Energy System and Energy Efficiency Loan Guarantees

Tammi Schone
Release Date

United States Department of Agriculture (USDA) State Director for South Dakota Julie Gross today encouraged rural small businesses and agricultural producers to apply for financing in a key program, USDA’s Rural Energy for America Program (REAP), that provides loan guarantees to help rural small businesses lower their energy costs.

“Assisting rural communities is our mission,” said Gross. “Reducing operating costs and energy consumption can assist a small business’ bottom line and allows them to invest in equipment, products, and services to expand their operation.”   

USDA accepts applications for REAP funding year-round.  Potential applicants can contact Jolene Pravecek at jolene.pravecek@usda.gov or (605) 655-3516 for additional information.  In conjunction with the REAP Guaranteed Loan Program is a competitive REAP grant.  If selected, grant funds will reimburse the applicant up to 25% of eligible project costs.  The next application deadline for REAP grants (requesting $20,000 or less in grant funding) is October 31, 2019.

REAP funding can be used for renewable energy systems such as anaerobic digesters, biomass, geothermal, hydropower, wind and solar. It also can be used to make energy efficiency improvements to heating, ventilation and cooling systems; insulation; and lighting and refrigeration. Below is an example of a USDA REAP investment: 

  • Langer’s Supermarkets, Inc. (trade name Langer’s Family Foods) received $3,767 to purchase and install LED lighting in the grocery store in Gettysburg, SD.Langer’s Family Foods is a family owned grocery store.The store is a convenient one-stop shop where you can purchase everyday essentials including quality fresh meat, frozen food items, dairy, health and beauty products to a wide array of locally grown fruit and vegetables.

This program helps increase America energy independence by increasing the private sector supply of renewable energy and decreasing the demand for energy through energy efficiency improvements.  Over time, these investments can also help lower the cost of energy costs for small businesses and agricultural producers.

Gross’ announcement is in coordination with the recent announcement made by Acting Assistant to the Secretary for Rural Development Joel Baxley that the U.S. Department of Agriculture (USDA) has more than $400 million still available for Energy System and Energy Efficiency Loan Guarantees.

In April 2017, President Donald J. Trump established the Interagency Task Force on Agriculture and Rural Prosperity to identify legislative, regulatory and policy changes that could promote agriculture and prosperity in rural communities. In January 2018, Secretary Perdue presented the Task Force’s findings to President Trump. These findings included 31 recommendations to align the federal government with state, local and tribal governments to take advantage of opportunities that exist in rural America. Supporting the rural workforce was a cornerstone recommendation of the task force.

 To view the report in its entirety, please view the Report to the President of the United States from the Task Force on Agriculture and Rural Prosperity (PDF, 5.4 MB). In addition, to view the categories of the recommendations, please view the Rural Prosperity infographic (PDF, 190 KB).

USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural areas. For more information, visit www.rd.usda.gov.