An Investment and Cost Guide for Delaware Poultry Growers
Appendix E: USDA Renewable Energy Loan
The U.S. Department of Agriculture (USDA) Renewable Energy for America Program (REAP) offers grants and loan guarantees to farmers, ranchers, and rural small businesses, to help them purchase renewable energy systems or make energy efficiency improvements. REAP is a continuation of the program formerly known (prior to 2008) as “Section 9006” or the “Renewable Energy Systems and Energy Efficiency Improvements Grant Program” which was established in the 2002 Farm Bill.
The renewable energy grants and loans are managed in Delaware by USDA’s Rural Development Office in Dover. Bruce Weaver, USDA’s State Energy Coordinator in Delaware, can be reached at (302) 857-3629 or firstname.lastname@example.org for more information. It is advisable to contact USDA for assistance if you are considering this grant or loan program. Additional information on the forms can be found online at http://www.rurdev.usda.gov/regs/regs_toc.html under Part 4280-B (Loans and Grants-Renewable Energy Systems and Energy Efficiency Improvements Program).
For guaranteed loans of $600,000 or less, the following forms are required:
- Form RD 4279-1A, Application for Loan Guarantee, Short Form
- Form RD 1940-20, Request for Environmental Information Form
- Additional information:
The following information will need to be submitted as part of the loan guarantee application:
- Project Summary
- Borrower Eligibility
- Project Eligibility
- Operation description
- Financial information for size determination
- Spreadsheet showing matching funds
- Self-Evaluation Score
- Technical Report
- Business-level Feasibility Study
- Intergovernmental consultation comments
- Lenders complete comprehensive written analysis
- A proposed Loan Agreement or a sample Loan Agreement with an attached list of the proposed Loan Agreement provisions
- The lender will need to have the following information on file for USDA’s review:
- Personal credit report from a credit reporting agency for each owner or person owning 20% or more of the business
- Commercial credit reports obtained by the lender on the borrower
- Current personal and corporate financial statements of any guarantors
- Certification by the lender that it has completed a comprehensive written analysis of the proposal, the borrower is eligible, the loan is for authorized purposes with technical merit, and there is reasonable assurance of repayment ability based on the borrower’s history, projections, equity, and the collateral to be obtained.
For more information about USDA Renewable Energy Grants, Loans, and Loan Guarentees, see page 18 in the Investment and Cost Guide.