Rural Energy for America Program (REAP)–Accepting Applications NOW
*As a reminder, only rural small businesses and farmers/ranchers are eligible. Non-profits, units of government, and institutions of higher education are not.
To qualify as a farmer/rancher, the entity, including corporate parents, affiliates, and subsidiaries, must derive at least 50% of total income from the farm operations.
To qualify as a small business, the entity, including corporate parents, affiliates, and subsidiaries, must meet the definition based on the Small Business Administration guidelines (http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf).
All of Hawaii and the Western Pacific are considered “rural”, except the Honolulu Census Designated Place (CDP) which is defined as Red Hill to Makapuu Point, S and W of the crest of the Koolau Mts.
Available on request are a list of grant writers and a list of energy auditors/assessors. These lists can be provided as information only. There are no guarantees or assurances on the quality of work, or any other representation made by any of the people listed.
There have been some changes made, primarily to do with funding deadlines and funding availability. The bottom line is to submit a complete application ASAP. There is a final due date of 7/31/09, but if you wait until then, your chances of obtaining funding diminish. The funding priorities are:
1. Grants $20,000 or less. Funding can be accessed twice a month through 7/31/09, starting 6/15/09.
2. Grants with a corresponding guaranteed loan request. Funding can be accessed twice a month through 7/31/09, starting 6/15/09.
The Notice of Funding has finally been published in the Federal Register today, May 26, 2009. http://edocket.access.gpo.gov/2009/pdf/E9-12178.pdf
Grants are available for up to 25% of a project’s cost, not to exceed $250,000 for energy efficiency improvements and $500,000 for renewable energy systems.
The maximum amount of a guaranteed loan is $25 million.
Guaranteed loan only requests and combination guaranteed loan and grant requests cannot exceed 75% of eligible project costs.
Summary of Changes:
1. Submit applications to the appropriate USDA Rural Development State Office by July 31, 2009 (address above). All applications must be received at the appropriate State Office by 4:30 p.m. local time on the deadline date. Neither complete nor incomplete applications received after this date and time will be considered, regardless of the postmark on the application.
2. National set-aside for applications for grants less than $20,000. The reserve funds for these grants will be accessible to the States on the 15th and the last of day of each month prior to August 31, 2009.
3. No renewable energy system or energy efficiency improvement, or portion thereof, can be used for any residential purpose, including any residential portion of a rural small business, farm, ranch, or agricultural facility. However, an applicant may apply for funding for the installation of a second meter or provide certification in the application that any excess power generated by the renewable energy system will be sold to the grid and will not be used by the applicant for residential purposes.
4. The applicant for a grant or combination guaranteed loan and grant must demonstrate financial need. Only those packages that demonstrate financial need will be considered for funding.
5. There has been an allocation of funds to States. Funds not “used” by a State by 9/8/09, will be pooled and revert to the National Office Reserve and made available to other States on a competitive basis.
6. After a State’s grant only allocation is used up, there will be only one opportunity to compete for grant funds nationally after 9/8/09.
7. Requests for Reserve funds for loan-only and loan/grant combination requests may be made at any time. Loan/grant combination requests will be allocated to States on a competitive basis using priority scores of the applications on the 15th and the last of day of each month.
For more information, contact:
Timothy W. O’Connell
Assistant to the State Director/Rural Energy Coordinator
USDA/Rural Development
154 Waianuenue Ave., Room 303
Hilo, HI 96720
(808) 933-8313
(808) 933-8326 (F)
Committed to the future of rural communities