Rural Energy for America Program Renewable Energy Systems & Energy Efficiency Improvement Guaranteed Loans & Grants in South Dakota

PROGRAM STATUS:

Open

APPLICATION DEADLINE:

Applications for Grants of $20,000 or Less and Loan/Grant of $20,000 or Less Combo Applications due by November 2, 2020, or March 31, 2021.

Applications for Unrestricted Grants or Loan/Unrestricted Grant Combo Applications due by March 31, 2021.

Guaranteed Loans are accepted on a continuous application cycle.

One RD Guarantee

Beginning Oct. 1, 2020, this program will be streamlined under the OneRD Guarantee Loan Initiative. For more information, visit www.rd.usda.gov/onerdguarantee

Fiscal Year 2021 Funding Amounts:

REAP FY 2021 funding amounts will be published with the enactment of the full-year appropriations act.

What does this program do?
The program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements.

Who may apply?

  • Agricultural producers with at least 50 percent of their gross income coming from agricultural operations.
  • Small businesses in eligible rural areas.

NOTE: Agricultural producers and small businesses must have NO outstanding delinquent federal taxes, debt, judgment or debarment.

What is an eligible area?

  • Businesses must be in an area OTHER THAN a city or town with a population of greater than 50,000 inhabitants and the urbanized area of that city or town. Check eligible business addresses.
  • Agricultural producers may be in rural or non-rural areas.

How may the funds be used?
Funds may be used for renewable energy systems, such as:

  • Biomass (for example: biodiesel and ethanol, anaerobic digesters, and solid fuels).
  • Geothermal for electric generation or direct use.
  • Hydropower below 30 megawatts.
  • Hydrogen.
  • Small and large wind generation.
  • Small and large solar generation.
  • Ocean (tidal, current, thermal) generation.

Funds may also be used for the purchase, installation and construction of energy efficiency improvements, such as:

  • High efficiency heating, ventilation and air conditioning systems (HVAC).
  • Insulation.
  • Lighting.
  • Cooling or refrigeration units.
  • Doors and windows.
  • Electric, solar or gravity pumps for sprinkler pivots.
  • Switching from a diesel to electric irrigation motor.
  • Replacement of energy-inefficient equipment.

What funding is available?

  • Loan guarantees on loans up to 75% of total eligible project costs.
  • Grants for up to 25% of total eligible project costs.
  • Combined grant and loan guarantee funding up to 75% of total eligible project costs.

What are the loan guarantee terms?

  • $5,000 minimum loan amount.
  • $25 million maximum loan amount.
  • Up to 85% loan guarantee.
  • Rates and terms negotiated with the lender and subject to USDA approval.
  • Maximum term of 30 years for real estate.
  • Maximum term of 15 years for machinery and equipment.
  • Maximum term of 7 years for capital loans.
  • Maximum term of 30 years for combined real estate and equipment loans.

What are the grant terms?
Renewable Energy System Grants:

  • $2,500 minimum.
  • $500,000 maximum.

Energy Efficiency Grants:

  • $1,500 minimum.
  • $250,000 maximum.

Are there additional requirements?

  • Applicants must provide at least 75% of the project cost if applying for a grant only.
  • Applicants must provide at least 25% of the project cost if applying for loan, or loan and grant combination.
  • Projects greater than $200,000 require a technical report.
  • Energy efficiency projects require an energy audit or assessment.

How do we get started?

  • Applications for this program are accepted year-round at your local office.

Who can answer questions?
Contact your State Rural Development Energy Coordinator.

What law governs this program?

Why does USDA Rural Development do this?
This program helps increase American 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.

NOTE: Because citations and other information may be subject to change, please always consult the program instructions listed in the section above titled “What law governs this program?” You may also contact your local office for assistance.

 

NOTE:If state specific forms are not shown above, please refer to the application materials listed below to start the process of applying for a loan and/or grant. Please ensure that your state is selected in the dropdown menu above to find the  State Office contact information for this program and speak to a Rural Development Energy Coordinators before attempting to fill out any forms or applications. This will save you valuable time in the process.

To complete an application for this program, you must be pre-registered with the System for Award Management (SAM) and also have a Data Universal Number System (DUNS) number. Neither of these applications cost money, but they can take time so be sure to get this taken care of right away. If you are already registered with these systems, you do not need to do it again.To complete an application for this program, you must be pre-registered with the System for Award Management (SAM) and also have a Data Universal Number System (DUNS) number. Neither of these applications cost money, but they can take time so be sure to get this taken care of right away. If you are already registered with these systems, you do not need to do it again.

Instructions

Application Instructions (pdf)

Forms

Other Resources

There are no other additional requirements at the national level. If there are additional state-specific requirements they will be listed above.

There are currently no events scheduled.

South Dakota Rural Business-Cooperative Programs Contact Map

RBS Map

Grant Konechne, Rural Business and Cooperative Programs Director
200 4th Street SW, Federal Bldg. Rm. 210
Huron, SD  57350
Phone: (605) 352-1108
Fax: (855) 262-1940

Clark Guthmiller, Specialist
1717 N. Lincoln Avenue, Suite 102
Pierre, SD  57501
Serves Campbell, Corson, Dewey,
Haakon, Hughes, Jones, Mellette, Potter,
Stanley, Sully, Todd, Walworth, and
Ziebach
Phone: (605) 301-3409
Fax: (855) 262-1942

Gary Wedel, Specialist
1820 North Kimball, Suite C
Mitchell, SD  57301
Serves Aurora, Brule, Buffalo, Charles
Mix, Davison, Douglas, Faulk, Gregory,
Hand, Hanson, Hyde, Jerauld, Lake,
Lyman, McCook, Miner, Sanborn, Spink,
and Tripp
Phone: (605) 299-3339
Fax: (855) 262-1941

Lance Lockwood (605) 858-6681, Specialist
414 East Stumer Road, Suite 200
Rapid City, SD  57701
Serves Bennett, Butte, Custer, Fall River,
Harding, Jackson, Lawrence, Meade,
Oglala Lakota, Perkins, and Pennington
Phone: (605) 858-6683
Fax: (855) 262-1943

Cayla Holleman, Specialist
1820 North Kimball, Suite C
Mitchell, SD  57301
Serves Bon Homme, Clay, Hutchinson,
Lincoln, Minnehaha, Moody, Turner, Union,
and Yankton
Phone: (605) 299-3357
Fax: (855) 262-1938

Cayla Holleman, Specialist
1820 North Kimball, Suite C
Mitchell, SD  57301
Serves Beadle, Brookings, Clark, Deuel, and Kingsbury
Phone: (605) 299-3357
Fax: (855) 262-1941

Clark Guthmiller (605) 301-3409 or Roxanne Woodring (605) 824-3623, Specialist
524 Enterprise Street South, Suite 100
Aberdeen, SD  57401
Serves Brown, Codington, Day, Edmunds,
Grant, Hamlin, Marshall, McPherson, and
Roberts
Phone: (605) 824-3627
Fax: (855) 262-1939

Carolyn Bloodgood, Technician
200 4th Street SW, Federal Bldg. Rm. 210
Huron, SD  57350
Phone: (605) 352-1144
Fax: (855) 262-1940

Teresa Urban, Loan Technician
200 4th Street SW, Federal Bldg. Rm. 210
Huron, SD  57350
Phone: (605) 352-1141
Fax: (855) 262-1940