James Madison University

USDA Guarantees up to $200 Million in Clean Energy Loans

The U.S. Department of Agriculture (USDA) announced 15 July 2005 that it is now offering $11.4 million to guarantee loans to farmers, ranchers, and small rural businesses for renewable energy and energy efficiency projects. The USDA estimates that the funds could guarantee up to $200 million in loans for such projects. Eligible renewable energy projects are those that produce energy or hydrogen from biomass, geothermal, solar, or wind energy sources. The loans can cover at most 50 percent of the project costs, can range from $5,000 to $10 million, and can extend up to 20 years. The loan guarantee funds will be set aside until August 31st, after which they'll be reallocated to the USDA's grant program. See the USDA press release, the full rules on applying for the funds (about halfway down, past the comments), and the USDA Rural Development Web site.

USDA Newsroom Press Release No. 0261.05