November 12, 2013. The United States Department of Agriculture recently announced funding for 424 projects across the country that target rural small businesses and agricultural producers. The funding was provided under the Rural Energy for America Program (“REAP”). This program is designed to offer financial assistance to farmers, ranchers and rural small businesses to purchase and install renewable energy systems and make energy-efficiency improvements. The funds provided allow rural small businesses and agricultural producers to leverage additional private funding sources to make needed energy efficiency upgrades to their operation.
The recent round of funding through REAP accounted for $14 million in grants and loan guarantees across 22 states. Rural small businesses participating in the program include multiple Iowa companies. For example, Grinnell Markets Inc., of Grinnell, Iowa, has been selected to receive a $39,000 grant to install more energy efficient lighting and refrigeration and to install a more efficient heating, ventilation and cooling system. L&S Pumping, Inc., in Strawberry Point, Iowa, was selected for an $11,675 grant to help purchase and install a geothermal heating and cooling system for a business equipment maintenance shop.
Under REAP, up to 25 percent of an eligible renewable energy system or energy efficiency improvement project can be funded through a grant, and additional support can be provided in the form of a loan guarantee. To learn more about Goosmann Law's agricultural practice, contact us at info@goosmannlaw.com or by calling 712.226.4000.