USDA Energy Grant & Loan Programs
The Renewable Energy for America Program (REAP), offered through USDA Rural Development, offers grants, guaranteed loans, and combination grant/guaranteed loans to help agricultural producers and rural small businesses purchase and install renewable energy systems and make energy efficiency improvements in rural areas.
Renewable energy is defined as energy derived from a wind, solar, biomass, or geothermal source; or hydrogen derived from biomass or water using wind, solar, biomass, or geothermal energy sources.
Southwest Energy & Feed, Seminole, TX — 2006 was the first year that the USDA accepted applications for a combination grant and guaranteed loan application. Southwest Energy & Feed, a Westar Trade Resources client, was successful in obtaining a $500,000 grant and a $1.1 million loan guarantee for a 1.6 million gallon per year biodiesel plant located adjacent to the Ocho Gin. This combination award was one of 7 awards by the USDA throughout the nation. In 2007, Southwest Energy & Feed Inc. also received a USDA Value-Added Producer Grant for $300,000.
Zurix Biodiesel, Thomaston, GA — Received a $500,000 grant for a $5 million biodiesel project through this program in 2008.
Mississippi Moonshine, Clarksville, MO — Received a $20,000 grant for an ethanol fueling station.