USDA Announces Available Grants for Renewable Energy Systems and Energy Efficiency Improvements

April 16, 2007 __ Rural Business—Cooperative Service (RBS), an Agency within USDA Rural Development, announces it is accepting applications for fiscal year (FY) 2007 to purchase renewable energy systems and make energy efficiency improvements for agriculture producers and rural small businesses in eligible rural areas. Funding will be available in the form of grants, guaranteed loans, and combined guaranteed loans and grant applications.
 
For renewable energy systems, the minimum grant request is $2,500 and the maximum is $500,000. For energy efficiency improvements, the minimum grant request is $1,500 and the maximum is $250,000. The maximum amount of a guaranteed loan made to a borrower will be $10 million. Fifty percent of the available grant funding will be reserved for the grant portion of combination grant and guaranteed loan applications. For FY 2007, the guarantee fee amount is 1 percent of the guaranteed portion of the loan and the annual renewal fee is 0.125 percent (one-eighth of one percent) of the guaranteed portion of the loan.
 
Grant applications must be completed and submitted to the appropriate USDA Rural Development State Office no later than May 18, 2007. Any unused guaranteed loan funding as of August 1, 2007, may be pooled and revert to grant funding. It is anticipated that grant award announcements will be made approximately 75 days following the submission deadline.
 
Applications for guaranteed loans as well as combined guaranteed loan and grant packages must be completed and submitted to the appropriate USDA Rural Development State Office no later than July 2, 2007. Combined guaranteed loan and grant packages will compete and be awarded on a bi-weekly basis.
 
Guaranteed loan applications will be accepted and processed in a rolling application manner. The application closing deadlines for grants, guaranteed loans and combined guaranteed loan and grant packages are firm. Submit applications to Alan Watt, USDA Rural Development, 230 North First Avenue, Suite 206, Phoenix, AZ 85003–1706. For questions call Alan at (602) 280–8769.