USDA’s Rural Development Agency has announced that it is taking applications for Rural Energy for America Program (REAP) grants and guaranteed loans.  A total of $87 million is available in FY2010 for projects to develop and/or construct renewable energy systems and energy efficiency improvements.

Applications for REAP grants and guaranteed loans must be received by 4:30 pm local time June 30, 2010 at the USDA Rural Development State Office in which the proposed project is located.   A list of the state offices, with contact information for the state’s Rural Development Energy Coordinator, is provide in the Federal Register notice soliciting applications.  Application materials may be obtained by contacting a Rural Development State Energy Coordinator or on the federal grants website.

A few highlights for this year’s notice for REAP grants and guaranteed loans include:

• At least 20 percent of the grant funding will be allocated for grants of $20,000 or less.  But, unlike FY2009, smaller grant applications will not be assigned any additional priority points for ranking grant applications.
• For renewable energy systems, the minimum grant is $2,500 and the maximum is $500,000.
• For energy efficiency grants, the minimum grant is $1,500 and the maximum grant is $250,000.
• The minimum loan guarantee amount is $5,000 and the maximum amount is $25 million.
• Applicants may apply for both a grant and a guaranteed loan for a single project.
• Applicants for a grant or a grant and guaranteed loan must demonstrate financial need.

Later this year, the Agency plans to issue notices for $9.9 million in FY2010 funding for REAP energy audit and renewable energy development and assistance grants and for $2.4 million in FY2010 funding for REAP renewable energy feasibility study grants.  The amount of funding available for these two REAP components may be adjusted depending on the quality of the applications for the grants and guaranteed loans.