USDA Rural Development application deadline for energy project grant funding set

HILO, Hawaii—USDA Rural Development State Director Lorraine P. Shin encourages small businesses and agricultural producers to apply for funding from the U.S. Department of Agriculture’s Rural Development Program for Renewable Energy and Energy Efficiency projects. The grant application deadline is May 12, 2006. Guaranteed loans can be accepted anytime.

The USDA is currently accepting applications for Renewable Energy Systems projects that derive energy from wind, solar, biomass, biogas, and geothermal sources. Funding is also available for Energy Efficiency Improvement projects such as improvements to HVAC systems, insulation, refrigeration, lighting, pumping systems, air systems, motor systems, irrigation efficiency improvements and others.

“Investment in renewable energy and energy related projects is critical to address our nation’s growing energy needs. I encourage eligible rural residents who have not applied to take this funding opportunity to develop renewable energy enterprises and update existing energy operations,” Shin said.

Small businesses in communities with a population of 50,000 or less and agricultural producers that demonstrate a financial need are eligible to apply for this funding. The grant funding may be used to pay for up to 25 percent of the eligible project costs, with a minimum project expense of $2,500 for Energy Projects (maximum grant of $500,000) and $1,500 minimum for Energy Efficiency Improvements (maximum grant of $250,000. Guaranteed loans have a minimum of $5,000 and a maximum of $10 million.

Applications must be postmarked by May 12, 2006. Contact Tim O’Connell, USDA Hawaii State Office Rural Energy Coordinator at 808/933-8313 (tim.oconnell@hi.usda.gov) for additional information or visit, http://www.rurdev.usda.gov/rbs/farmbill/index.html.

USDA Rural Development’s mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. As a venture capital entity, Rural Development has invested over $63 billion since the beginning of the Bush Administration to provide equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. As a result, over 1.1 million jobs have been created or saved through these investments. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA’s web site at http://www.rurdev.usda.gov. (PR)