Grants Available to Businesses and Ag Producers with Energy Efficiency Improvements and Renewable Energy Systems

14 02 2011

Topeka, February 14, 2011 – USDA Rural Development is accepting applications for grantsand loan guarantees in the Rural Energy for America Program (REAP) for the fiscal year 2011program. DO NOT WAIT to submit your project application; applying early may increase theopportunity for your project to be funded. The initial application deadline is March 31, 2011;later application deadlines may be announced as they are made available.

REAP is designed for rural small business and agriculture producers that complete energyefficiency (EE) improvements in their existing business or install renewable energy (RE) systemsfor their current or new business. Rural is defined as populations less than 50,000. Grants areavailable for up to 25% of the total project costs. The minimum requirement for a grant forenergy efficiency improvements is $1,500 and for $2,500 for renewable energy systems. Loanguarantees can also be obtained for up to 75% of the total project costs; loan guarantees canmitigate a lender’s risk up to 85% of the loan. Applications can be received continually and willbe selected through a competition based on a set of scoring criteria.
Energy efficiency improvements are defined as projects that result in a reduction of BTU usage.Project such as lighting upgrades, insulation, HVAC, coolers, irrigation, and grain dryers.Renewable energy projects are projects that either create or replace energy from a renewablesource. Renewable projects can include wind, solar, geothermal, biomass and biogas. Theprogram does not allow improvements to houses or housing units (including rental property)even if they are used as part of a business or agriculture production. Approximately 40 projectswere funded in Kansas last year utilizing this program.

To obtain more information about this program, please contact the following USDA RuralDevelopment Area Office Specialist in your area.
Brandon Prough – Hays USDA RD office, 785-628-3081,

Larry Holz – Manhattan USDA RD office, 785-776-7582,

Katie Casper – Iola USDA RD office, 620-365-2901,

Doug Clary – Newton USDA RD office, 316-283-0370,

For additional information regarding this and other USDA Rural Development programs,call the Agency’s state office at 785-271-2740, or log onto the Agency’s website




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