Businesses may qualify for energy grants, loans
Businesses may qualify for energy grants, loans
Staff reporter
Need new light fixtures in your store? Maybe a new heating and cooling system?
Small businesses and agricultural producers in Marion County may qualify for grants and low interest loans through USDA Rural Development.
Tom Finger of Rural Development spoke Friday to Marion Chamber of Commerce members about programs available through the government entity.
Carlsons' Grocery of Marion was the most recent recipient of a grant and loan that totaled more than $80,000 when the store owners replaced coolers and made other energy efficiency improvements.
Who is eligible?
Agricultural producers directly engaged in ag production, rural small businesses that meet the SBA size standards, demonstrated financial need, and projects must be located in a rural area.
Non-profit organizations and public entities are not eligible.
Rural businesses must be located in a city with a population less than 50,000.
What types of projects are eligible?
The bulk of the projects that have been funded, Finger said, have been energy efficiency that include the replacement of electrical and lighting, heating, air conditioning, etc.
Building envelope includes windows, reflective roof coating, and other improvements to the exterior of the building to improve the efficient use of energy, refrigeration systems, grain drying and curing, irrigation, fans and blowers, compressors, and pumps.
Projects with the fastest turn-around or energy savings are the most desirable, Finger said.
Applicant must own the project and control the revenues and expenses.
Eligible uses include business plans, retrofitting, construction of a new facility, working capital, and land acquisition.
Grants
Renewable energy systems have a minimum grant request of $2,500 and maximum of $500,000. Energy efficiency improvements have a minimum request of $1,500 and maximum of $250,000.
Maximum grants per applicant per fiscal year is $750,000.
Guaranteed loans
The guaranteed loan cannot exceed 50 percent of the total eligible project costs. The maximum combination of loan and grant cannot exceed 50 percent of the total eligible project costs.
Minimum loan requests are $5,000, less the grant amount and the maximum is $10 million.
Interest rates are negotiated between lender and applicant. Real estate loans cannot exceed 30 years; machinery and equipment 20 years or useful life. Combined loans of real estate and equipment must not exceed 30 years.
Working capital must not exceed seven years.
Program guidelines for 2008 include a guaranteed loan fee of one percent and annual renewal fee of 1/4 of one percent.
Grant applications are accepted twice a year — April 15 and June 16.
Applications for guaranteed loans and combination loans and grants are accepted until June 16.
Much time and effort must be made to complete applications, Finger said, which makes the April 15 deadline unlikely for any new applications to begin at this time but encouraged businesses who are interested in applying to begin the process as soon as possible for the June deadline.
