The program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements. Agricultural producers may also apply for new energy efficient equipment and new system loans for agricultural production and processing.

• Agricultural producers
  • An entity directly engaged in production of agricultural products where at least 50 percent of their gross income coming from agricultural operations.
• Small businesses
  • Must be located in eligible rural areas and one of the following:
    • Private for-profit entity (sole Proprietorship, Partnership, or Corporation)
    • A Cooperative [including those qualified under Section 501(c)(12) of IRS Code]
    • An electric utility (including a Tribal or governmental electric utility) that provides service to rural consumers and operates independent of direct government control)
    • A Tribal corporation or other Tribal business entities that are chartered under Section 17 of the Indian Reorganization Act (25 USC 477) or have similar structures and relationships with their Tribal entity without regard to the resources of the Tribal government.
  • Must meet the Small Business Administration size standards in accordance with 13 CFR 121.

Eligible borrowers are:

• Rural small businesses.
• Agricultural producers.

• Loan guarantees on loans up to 75 percent of total eligible project costs.
• Grants for up to 50 percent of total eligible project costs.
• Combined grant and loan guarantee funding up to 75% of total eligible project costs.