USDA now accepting applications for loans
BANGOR, Maine — USDA Rural Development State Director Virginia Manuel has announced that the agency is now accepting applications from rural small businesses and agricultural producers to compete for $200 million in guaranteed loan funds available to finance renewable energy and energy efficiency projects in Maine’s rural communities.
Funds are being made available through Rural Development’s Rural Energy for America Program (REAP).
There is approximately $200 million available through the REAP guaranteed loan program for fiscal year 2016. Loan purposes include financing renewable energy systems such as biomass fueled anaerobic digesters and biodiesel production, solar, wind, geothermal, etc., and making energy efficiency improvements such as efficient lighting conversions, motor upgrades, building envelope improvements, HVAC upgrades and more.
REAP is a program driven by the lender who will request the USDA Rural Development loan guarantee, and if approved, make and service the loan.
Guaranteed loans are available for up to 75 percent of the total eligible project cost, and loan amounts can range from $5,000 to $25 million. The REAP loan guarantee requires that 25 percent of project costs come from other funding sources such as business equity or other borrowed funds, which could include a USDA Rural Development Business & Industry Guaranteed Loan.
For more information on how to apply, interested rural Maine businesses, agricultural producers and lenders may contact Brian Wilson at 990-9168 or brian.wilson@me.usda.gov. USDA Rural Development’s local office is at 735 Main St., Suite 1, Presque Isle.
