USDA 9006 Energy Grant & Loan Program
The Renewable Energy and Energy Efficiency Improvement Program, 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. Whe is eligible?
- An agricultural producer (individual or entity) directly engaged in the production of agricultural products and obtains at least 50% or greater of their gross income from their agriculture business
- A rural small business – an entity is considered a small business in accordance with SBA’s small business standards.
A private entity including a sole proprietorship, partnership, corporation, and a cooperative.
An electric utility, including a Tribal or governmental electric utility that provides services to rural consumers on a cost-of-service basis without support from public funds or subsidy from the Government authority establishing the district, provided such utilities meet SBA’s definition of small business. These entities must operate independent of direct Government control.
- With the exception of the entities described above, all other non-profit organizations and public entities are excluded.
- For projects with total eligible costs exceeding $200,000, agricultural producers and rural small businesses with a demonstrated financial need.
- For projects with total eligible costs of $200,000 or less, applicants must provide a statement certifying their financial need.
2006 was the first year that the USDA accepted applications for a combination grant and guaranteed loan application. Southwest Energy & Feed, Seminole, Texas, 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.