Dept. of Agriculture Has $ for Rural Small Businesses
At first blush, the idea that the US Department of Agriculture has any role to play in the build-out of Renewable energy sources might seem surprising. But, since 2008, the USDA has administered the Rural Energy for America Program (REAP) to provide financial assistance to agriculture producers and rural small businesses to purchase, install, and construct renewable energy systems.
Earlier this year, the USDA announced a huge expansion of REAP by making over 1 billion dollars in funding available. Funding support can take the form of loan guarantees and/or grants. The maximum grant amount is $1 million. This funding can be used toward the purchase of a renewable energy system, which, for example, could include solar generation, battery storage, and EV charging stations.
Successful applicants can receive loan guarantees for up to 75 percent of total eligible project costs, grants for up to 50 percent of total eligible project costs, and combined grant and loan guarantee funding for up to 75% of total projects costs.
What may also be surprising is that it isn’t necessary for a “rural small business” to be related to or engaged in farming. A “rural small business” only needs to be located in an eligible rural area, be a private for-profit entity (sole proprietorship, partnership, or corporation), and meet the Small Business Administration size standards in accordance with 13 CFR 121.
So, if you’re a car dealer on Long Island, don’t think that you won’t qualify for a REAP grant. There are locations on eastern Long Island that are designated eligible rural areas. To learn if your business is within an eligible area, go to: https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do.
REAP awards are received after the installation of the renewable energy system. In other words, REAP is a reimbursement grant. An awardee won’t typically receive their reimbursement check until one year from completion of the project. But, considering the costs of installation for a renewable energy system and the opportunity for the USDA to pick up half the tab, the wait may be worth it.
The USDA published an FAQ that addresses many of the questions you may have about REAP. You can access their FAQ at: https://www.rd.usda.gov/media/file/download/reap-renewable-energy-systems-faqs.pdf.
A REAP application requires a fair amount of paperwork. Sprocket Power can help you navigate your way through the process. If you are interested in considering applying for a REAP grant, contact Maria Fields at (914) 646-4016, mfields@sprocketpower, or Thomas Higgins at (518) 339-2193.
Sources:
https://shrinkthatfootprint.com/usda-reap-grant-unlocking-the-benefits/
https://www.rd.usda.gov/media/file/download/reap-renewable-energy-systems-faqs.pdf
