Weekly Review for May 9, 2024
This informal report by the Division of Entomology & Plant Pathology is a commentary on insects, diseases, and curiosities division staff encounter on a week-to-week basis. Comments and questions about this report are welcome and can be sent to your respective Inspector.
Angela Rust (Nursery Inspector & Compliance Officer) -
I’ve attached a photo this week of adult weevil feeding damage on roses. Irregular notching around the edges of roses and other ornamentals is a sign of adult weevil feeding. Adults will not likely be seen unless you survey the plants at night because that’s when feeding occurs. The larvae of weevils are in the soil and feed on plant roots. Beneficial nematodes are commercially available to control root-feeding larvae or insecticides. They can be applied to target adults when notching damage appears on leaves. Several species of weevils feed on ornamental plants.
Eastern tent caterpillars in this area are maturing and leaving nests in trees to find a protective location to pupate. I’ve already been seeing a lot of Botrytis blight on geraniums. We have had a fair amount of rain this spring and this part of the state tends to be very humid. These are ideal conditions for development of Botrytis fungus. Symptoms can start as spots on leaves, cut stems, or flowers and then spots can enlarge or join together to form a large brown blighted area which causes leaves or flowers to wilt and die. Watering plants from the base instead of overhead and not overcrowding plants can help with prevention. Trimming out early signs of infected leaves and disinfecting shears in between cuts can help prevent spread. There are also fungicides available to help control this problem.
Jared Spokowsky (Nursery Inspetor & Compliance Officer) -
I was asked to look at some nucs that were brought into the state this past week. I saw spotty brood, jagged torn open cappings and a foul odor. Those are typical American Foulbrood symptoms and should raise some alarm bells with any beekeeper, but it’s important to look carefully because things are not always what they appear to be at first glance. There was no oil residue on top of cappings and none of the cappings were sunken. Upon further investigation when capped cells were opened there was no decomposing brood and no open cells showed signs of hardened scale in the bottoms. When the contents of the cells were scrambled you could not get any material to rope out. This led me to look for other causes.
The most prominent other symptom was the presence of quite a bit of chewed down brood. Chewed down brood is indicative of Parasitic Mite Syndrome (PMS). PMS is basically when mite populations have gotten out of control and the bees are no longer strong enough to keep up with maintaining basic hive functions. However, in this case I could not find a single mite after removing dozens of bees from capped cells and the beekeeper had stated that they were treated prior to being moved. Ultimately, I came to the conclusion that all the symptoms were the result of chilled brood. The bees had been brought in during a cold snap the previous night and had a 6+ hour drive. Furthermore, a lot of the brood frames had been placed on the outside frame of the nuc.
I was also forwarded another report of dying boxwood. If you’re not familiar with boxwoods, they are a very popular evergreen landscape plant. Over the past few years there has been concern that boxwood blight could wipe them out. Although boxwood blight has been a problem, we have not seen it readily establish here in Indiana even after intercepting it multiple times on incoming nursery stock and finding it in isolated landscapes.
Now the Box Tree Moth (BTM) is another problem that Indiana boxwood will most likely face soon. Native to China and the Korean Peninsula, it was found in Europe in 2006 and then in Canada in 2018/ It has now been found in four U.S. states (Michigan, Ohio, New York, and Massachusetts). BTM is a voracious foliar feeder and can completely defoliate an entire boxwood in a single season. For more information on BTM please visit this Cornell Link. Thankfully, the residence I was called out to look at had a combination of cold damage from the winter and a heavy infestation of boxwood psyllid whose feeding damage will cause some cupping to the leaves but poses no significant threat to boxwoods.
Vince Burkle (Assistant Division Director & Nursery Inspector) -
Will Drews (Nursery Inspector & Compliance Officer) -
During a recent inspection, I found a Hosta ‘Twilight’ plant with some unusual foliar characteristics. It had some discoloration to the leaves and a fair bit of bumpy, puckering, mottled sections (see below photos). After sending a sample to Purdue’s Plant and Pest Diagnostic Lab, it was confirmed that this plant was infected with hosta virus X (HVX).
HVX is a virus that impacts all hosta cultivars. Symptoms include discoloration around the leaf veins, leaf mottling, puckering, and ringspots. In severe cases, this can lead to wilting and necrosis. Symptom presence varies among different cultivars. If you suspect HVX presence, it is wise to send a sample to a plant diagnostic lab for confirmation.
HVX is unfortunately not treatable and is spread via the sap of infected plants. Infected plants should be removed and incinerated or bagged and trashed. Do not compost infected material as it can spread the virus.
For more information, check out this Purdue University Landscape Report.
The Washington County Open Sheep Show will be Saturday, June 1, at the Washington County Fairgrounds. The event is sponsored by the Washington County Sheep Association and the Washington County Fair Board.
The Washington County Sheet Association will have food and drink concessions available.
Sheep related vendors are welcome to participate.
Check-in is 8-10 a.m. EDT; weigh-in 8:30-10 a.m.; Showmanship Starts 12:30 p.m. and Market Classes Start 30 minutes after the conclusion of Showmanship.
Showmanship will be based on grade as of 1/1/24. The Peewee Fun Class is for third grade and under. There is no entry fee and the winner receives a trophy.
There is a $5 entry fee for Juniors (grades 3-5), Intermediate (grades 6-8), Seniors (grades 9-12) and Adults. Winners receive $25.
Classes will include:
Market Lambs, Wethers and Ewes shown together by weight. Supreme Market Lamb receives $100 and banner. Reserve Market Lamb receives $50.
Washington County Only Market Lambs—first place received $25, second place receives $15.
Wool and Hair Breeding Ewes and Rams includes Junior Lambs (born March or later), Lambs, Yearlings and Ages shown by breed. Supreme Ewes receive $100 and banner. Reserve Ewes receive $50. Supreme Rams receive $50 and banner. Reserve Rams receive $25. Supreme Flock receives banner.
RULES:
Premise ID required at entry.
Sheep (excluding wethers) must have a scrapie tag.
Entry fee is $12/head ($8 for Washington County Residents. No fee if in Washington County only market lamb class)
Sheep should not be unloaded until checked at the designated area on the west side of the Livestock Pavilion.
Wool market lambs must be slick shorn (no more that 1/2 inch of fleece at check-in).
Ewe lambs may not be shown in both market and breeding classes.
Breeding sheep must have registration papers to show in purebred classes. All other breeding sheep will show in Commercial Wool or Hair classes.
Farm Flocks include one ram (any age) and four ewes (Aged/Yearlings/Lambs in any combination.)
Exhibitors are responsible for bedding and clean-up.
Show committee makes final decisions and reserves the right to disqualify any exhibitor and/or their animal due to abusive, unethical, deceptive or fraudulent practices.
For more information contact Jason Webster (WCSA president) at 812-725-5700 or Purdue Extension/Washington County at
The sponsors will not be held responsible for accidents.
This informal report by the Division of Entomology & Plant Pathology is a commentary on insects, diseases, and curiosities division staff encounter on a week-to-week basis. Comments and questions about this report are welcome and can be sent to your respective Inspector.
Our Website
Inspector Territories
Jared Spokowsky (Nursery Inspetor & Compliance Officer) -
Still relatively slow with nursery inspections. I was able to find quite a few samples of azalea and rhododendron which we take for a Sudden Oak Death survey. Phytophthora ramorum is the causal agent for Sudden Oak Death which has been a problem in the Pacific Northwest for many years. Our division takes hundreds of samples each year looking for diseased material and we have intercepted it in previous years on nursery stock. The host list is extensive and includes many plants outside of the Quercus genus. For more information on SOD click this link.
I did manage to find a healthy population of oleander aphid on swamp milkweed in a greenhouse. There were quite a few natural predators present but the aphids had a pretty good head start on them.
Anyone looking for cover crop choices for feeding bees should take a look at yellow mustard. It is a winter annual which if planted in the fall will survive until the spring and is fast to bloom.
Lastly, if anyone is interested in brushing up on their honeybee disease ID I would suggest taking a look at this link. Meg Milbrath at Michigan State University has put together a good slideshow with a variety of disease photos in a quiz format. For anyone who doesn't get to see many diseased hives, this gives a pretty good idea of what you would need to be able to ID when trying to diagnose one. I’ll also be giving a disease ID presentation on May 11 at the Northeast Indiana Beekeepers Association field day at Wheeler’s Bees as well as the Purdue Field Day put on by the Beekeepers of Indiana at the Beck Agricultural Center on June 15 (registration deadline June 8). And if you think you have a disease issue feel free to call me, even if you know what it is. I need examples to help cross-train the rest of our staff so please don’t hesitate to drop me a line at 317-447-0084.
Kristy Stultz (Nursery Inspector & Compliance Officer) -
Reminder: Aerial spraying for Lymantria dispar, now called spongy moth, is planned for the week of May 5 in part of North Manchester and a small area east of Berne in Adams County.
Treatments may be delayed due to weather.
During treatment an airplane flying 75-100 feet above the treetops will conduct treatment, starting at sunrise and continuing throughout the day as weather and flight schedules permit.
A second treatment will occur four to 10 days after the first.
People who live or work near the treatment areas might want to stay inside when the planes are flying and for about 30 minutes after treatments are complete. This gives the material time to settle out of the air and stick to treetops.
For more information on the treatments, call toll-free 1-866-NO-EXOTIC (663-9684), go to on.IN.gov/spongymoth or contact your county extension office. Follow us on X (formerly Twitter) @INdnrinvasive for continued updates.
Will Drews (Nursery Inspector & Compliance Officer) -
Besides nursery inspections, our division assists with phytosanitary inspections in partnership with the USDA’s APHIS Plant Protection and Quarantine staff. In my area, I assist mainly with log inspections and ensure the commodities are relatively pest free before leaving the country or, if not, make sure they will be treated beforehand. The images below show some of the insect pest activity I’ve spotted recently during log inspections.
Indiana State Department of Agriculture (ISDA)
The Indiana Meat and Poultry Intermediary Lending Program (MPILP) is a $15 million revolving loan program that assists Indiana meat and poultry packers and processors with access to affordable capital for meat expansion projects. This intermediary lending program addresses critical meat expansion needs, which developed and have continued since the start of the COVID-19 pandemic. The program will support local livestock producers by allowing their market ready livestock to be processed within their communities by reducing processing booking delays. ISDA will be working closely with the Indiana Economic Development Corporation (IEDC), who will serve as the intermediary lender. ISDA is also partnering with the Indiana Small Business Development Centers (ISBDC) who will assist in development of meat expansion projects and loan packages with local meat packers and processors.
Download the MPILP Grant Program One-Pager HERE.
TIMELINE:
Pre- applications will open April 1, 2024 at 8:00 a.m. ET.
Click here for the pre-application.
This program has a rolling application timeline which means applications can be submitted at any time.
WHO IS ELIGIBLE:
Indiana small and very small meat and poultry packers and processors that are not members of “the big four.” For example, in beef processing, “the big four” include Cargill, Tyson Foods, JBS SA and National Beef Packing.
ELIGIBLE EXPENSES MAY INCLUDE, BUT ARE NOT LIMITED TO:
Indiana Meat and Poultry Intermediary Lending Program MPILP eligible uses include:
- Expansion of existing business
- Start-up of new business
- Real estate purchase
- New construction
- Facilities update or expansion
- Equipment purchase
- Energy efficiency upgrades to facilities and equipment
- Purchase of an existing business
- Working capital
- Pollution control such as wastewater management
ELIGIBILITY:
Meat & Poultry Processing Loans are available to primary (slaughter) and secondary (cut, pack, value-added) meat processors. Processors must either be federal USDA inspected or state inspected by the Board of Animal Health BOAH to be eligible. Loans are available only to small and very small meat and poultry processors in the state of Indiana.
LOCAL BANK PARTICIPATION:
Indiana MPILP funds are available through local bank participation loans. Our MPILP team will work directly with you and your local banks to determine the structure of the local bank participation loan.
RATES & FEES:
Current Indiana MPILP fund rates are 3% for building and equipment, 2% for wastewater projects. The local bank rates will be current market loan rates. A local bank participation loan where MPILP funds are used will end up with a “blended” interest rate which will assist your business by lowering your overall interest rate. Loan fees will be the standard closing fees used by the local banks.
ISDA is working closely with the Indiana Banking Association (IBA) to encourage local bank participation on the meat expansion revolving loans that will result in blended interest rates while preserving local bank relationships.
TERMS:
The amortization period for MPILP funds can be from 1 to 15 years based on the term requirements from the local bank. In general, terms will match the useful life of the business asset being financed. Longer term loans may utilize periodic balloon payments with option to refinance based on the local bank eligibility.
LOAN LIMITS:
Indiana MPILP funds may range from $100,000 to $5 million.
OWNER EQUITY:
In general, MPILP funds will have the same requirements that an owner has made to the local bank. Owners must make a financial investment of 10% to 20% of the requested loan amount.
COLLATERAL REQUIREMENTS:
MPILP loans through local bank participation are typically collateralized by business and/or personal assets.
UNDERWRITING PROCESS:
Loans will be underwritten based on historic and projected cash flows with demonstrated ability to repay being the primary underwriting consideration. All MPILP loans require concurrence from USDA on the underwriting recommendation. The Indiana MPILP team will lead the loan concurrence process with the USDA.
REQUIRED DOCUMENTS:
A partial list of required documents appears below. Each loan is unique, and additional documents may be required based on the circumstances of the loan.
- Business financials statements
- Year-to-date profit and loss statement
- Current business balance sheet
- Business tax returns
- Proof of business ownership
- Trade name registration, if applicable
- Schedule of sources and uses
- Proof of personal equity injection
- Business plan
- Business bank statements
- Personal financial statement
- Personal tax returns
- Environmental review, if required by USDA and by project
MPILP SUPPORT:
The Indiana MPILP Team will help advise you throughout the loan development and term, providing support as needed. We will refer you to a regional Indiana Small Business Development Center ISBDC, https://isbdc.org/ to assist in business plan development and important financial planning. Access to the business professionals through the Indiana Small Business Development Centers ISBDC is a free service.
FOR MORE INFORMATION:
For information regarding the Indiana Meat and Poultry Intermediary Lending Program, please contact our Indiana MPILP team at
What does this program do?
The program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements. Agricultural producers may also apply for new energy efficient equipment and new system loans for agricultural production and processing.
Who may apply for this program?
- Agricultural producers
- An entity directly engaged in production of agricultural products where at least 50 percent of their gross income coming from agricultural operations.
- Small businesses
- Must be located in eligible rural areas and one of the following:
- Private for-profit entity (sole Proprietorship, Partnership, or Corporation)
- A Cooperative [including those qualified under Section 501(c)(12) of IRS Code]
- An electric utility (including a Tribal or governmental electric utility) that provides service to rural consumers and operates independent of direct government control)
- A Tribal corporation or other Tribal business entities that are chartered under Section 17 of the Indian Reorganization Act (25 USC 477) or have similar structures and relationships with their Tribal entity without regard to the resources of the Tribal government.
- Must meet the Small Business Administration size standards in accordance with 13 CFR 121.
- Must be located in eligible rural areas and one of the following:
NOTE: Agricultural producers and small businesses must have NO outstanding delinquent federal taxes, debt, judgment or debarment.
Who may qualify for loan guarantees?
Eligible borrowers are:
- Rural small businesses.
- Agricultural producers.
What are the borrowing restrictions for loan guarantees?
- Individual borrowers must be citizens of the United States or reside in the U.S. after being legally admitted for permanent residence.
- Private-entity borrowers must demonstrate that loan funds will remain in the U.S.
What is an eligible area?
- Projects must be located in rural areas with populations of 50,000 residents or less*.
- Check eligible rural area
Agricultural producers may submit projects to be located in non-rural areas as long as the project is associated with an on-site production operation.
How may the funds be used?
Funds may be used for the purchase and installation of renewable energy systems, such as:
- Biomass (for example: biodiesel and ethanol, anaerobic digesters, and solid fuels).
- Geothermal for electric generation or direct use.
- Hydropower below 30 megawatts.
- Hydrogen.
- Small and large wind generation.
- Small and large solar generation.
- Ocean (tidal, current, thermal) generation.
Funds may also be used for the purchase, installation and construction of energy efficiency improvements, such as:
- High efficiency heating, ventilation and air conditioning systems (HVAC).
- Insulation.
- Lighting.
- Cooling or refrigeration units.
- Doors and windows.
- Electric, solar or gravity pumps for sprinkler pivots.
- Switching from a diesel to electric irrigation motor.
- Replacement of energy-inefficient equipment.
Energy Efficiency Improvement applications must contain an Energy Audit, or Energy Assessment (depending on Total Project Costs) that complies with Appendix A to RD Instructions 4280-B
Agricultural producers may also use guaranteed loan funds to install energy efficient equipment and systems for agricultural production or processing.
What funding is available?
- Loan guarantees on loans up to 75 percent of total eligible project costs.
- Grants for up to 50 percent of total eligible project costs.
- Combined grant and loan guarantee funding up to 75% of total eligible project costs.
What is the maximum amount of a loan guarantee?
The loan guarantee percentage is published annually in a Federal Register notice. REAP loans approved in Fiscal Year 2024 will receive an 80 percent guarantee.
What are the loan guarantee terms?
The lender, with Agency concurrence, will establish and justify the guaranteed loan term based on the use of guaranteed loan funds, the useful economic life of the assets being financed and those used as collateral, and the borrower’s repayment ability. The loan term will not exceed 40 years.
What are the interest rates for the loan guarantee?
- Interest rates are negotiated between the lender and borrower.
- Rates may be fixed or variable.
- Variable interest rates may not be adjusted more often than quarterly.
What are the applicable fees for the loan guarantee?
- There is an initial guarantee fee, currently 1 percent of the guaranteed amount.
- There is a guarantee retention fee, currently 0.25 percent of the outstanding principal balance, paid annually.
- Reasonable and customary fees for loan origination are negotiated between the borrower and lender.
What are the underwriting requirements for the loan guarantee?
- The lender will conduct a credit evaluation using credit documentation procedures and underwriting processes that are consistent with generally accepted prudent lending practices and also consistent with the lender’s own policies, procedures and lending practices.
- The lender’s evaluation must address any financial or other credit weaknesses of the borrower and project and discuss risk mitigation requirements.
- The lender must analyze all credit factors to determine that the credit factors and guaranteed loan terms and conditions ensure guaranteed loan repayment.
- Credit factors to be analyzed include but are not limited to character, capacity, capital, collateral, and conditions.
What are the grant terms?
Renewable Energy System Grants:
- $2,500 minimum.
- $1 million maximum.
- $1,500 minimum.
- $500,000 maximum.
Are there additional requirements?
- Applicants must provide matching funds if applying for a grant only.
- 50% Federal grant share limited to projects that meet one of the following:
- Project is a Renewable Energy System (RES), or RES retrofit that produces zero greenhouse gas emissions (Carbon Dioxide, Methane, Nitrous Oxide, or Fluorinated Gases) at the project level.
- Project is located in an Energy Community as defined in 26 USC 45(b)(11)(B) and determined by the Department of the Treasury.
- Project is an Energy Efficiency Improvement (EEI).
- Is a project proposed from an eligible Tribal Corporation or other Tribal Business entity (including agriculture operations) as described in 7 CFR part 4280.
- All other projects are limited to 25% Federal grant share
- 50% Federal grant share limited to projects that meet one of the following:
- Applicants must provide at least 25 percent of the project cost if applying for loan.
- All projects must have technical merit and utilize commercially available technology.
- Energy efficiency projects require an energy audit or assessment.
- All projects require an environmental review prior to award or construction
How do we get started? Applications for this program are accepted year-round at your local office
Who can answer questions?
Contact your State Rural Development Energy Coordinato
What law governs this program?
- Grants – Code of Federal Regulation, 7 CFR Part 4280 -- Loans and Grants
- Guaranteed Loans – Code of Federal Regulation, 7 CFR 5001.
- This program is authorized by Title IX of the
Why does USDA Rural Development do this?
This program helps increase American energy independence by increasing the private sector supply of renewable energy and decreasing the demand for energy through energy efficiency improvements. Over time, these investments can also help lower the cost of energy for small businesses and agricultural producers.
NOTE: Because citations and other information may be subject to change, please always consult the program regulations listed in the section above titled “What law governs this program?” You may also contact your local office for assistance.
REAP Stakeholder Announcement
Due to the overwhelming response to the March 31st Notice of Solicitation of Applications, our processing times may be longer than anticipated. We are working diligently to ensure the quickest response time possible. Thank you for your patience.
Federal Register Notice - Correction Notice
FAQs
REAP Program Updates
- Rural Energy for America Program: Inflation Reduction Act Changes. Applicable to REAP RES/EEI grant applications received on or after April 1, 2023
What does this program do?
The program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements. Agricultural producers may also apply for new energy efficient equipment and new system loans for agricultural production and processing.
Who may apply for this program?
- Agricultural producers
- An entity directly engaged in production of agricultural products where at least 50 percent of their gross income coming from agricultural operations.
- Small businesses
- Must be located in eligible rural areas and one of the following:
- Private for-profit entity (sole Proprietorship, Partnership, or Corporation)
- A Cooperative [including those qualified under Section 501(c)(12) of IRS Code]
- An electric utility (including a Tribal or governmental electric utility) that provides service to rural consumers and operates independent of direct government control)
- A Tribal corporation or other Tribal business entities that are chartered under Section 17 of the Indian Reorganization Act (25 USC 477) or have similar structures and relationships with their Tribal entity without regard to the resources of the Tribal government.
- Must meet the Small Business Administration size standards in accordance with 13 CFR 121.
- Must be located in eligible rural areas and one of the following:
NOTE: Agricultural producers and small businesses must have NO outstanding delinquent federal taxes, debt, judgment or debarment.
Who may qualify for loan guarantees?
Eligible borrowers are:
- Rural small businesses.
- Agricultural producers.
What are the borrowing restrictions for loan guarantees?
- Individual borrowers must be citizens of the United States or reside in the U.S. after being legally admitted for permanent residence.
- Private-entity borrowers must demonstrate that loan funds will remain in the U.S.
What is an eligible area?
- Projects must be located in rural areas with populations of 50,000 residents or less*.
- Check eligible rural areas
Agricultural producers may submit projects to be located in non-rural areas as long as the project is associated with an on-site production operation.
How may the funds be used?
Funds may be used for the purchase and installation of renewable energy systems, such as:
- Biomass (for example: biodiesel and ethanol, anaerobic digesters, and solid fuels).
- Geothermal for electric generation or direct use.
- Hydropower below 30 megawatts.
- Hydrogen.
- Small and large wind generation.
- Small and large solar generation.
- Ocean (tidal, current, thermal) generation.
Funds may also be used for the purchase, installation and construction of energy efficiency improvements, such as:
- High efficiency heating, ventilation and air conditioning systems (HVAC).
- Insulation.
- Lighting.
- Cooling or refrigeration units.
- Doors and windows.
- Electric, solar or gravity pumps for sprinkler pivots.
- Switching from a diesel to electric irrigation motor.
- Replacement of energy-inefficient equipment.
Energy Efficiency Improvement applications must contain an Energy Audit, or Energy Assessment (depending on Total Project Costs) that complies with Appendix A to RD Instructions 4280-B
Agricultural producers may also use guaranteed loan funds to install energy efficient equipment and systems for agricultural production or processing.
What funding is available?
- Loan guarantees on loans up to 75 percent of total eligible project costs.
- Grants for up to 50 percent of total eligible project costs.
- Combined grant and loan guarantee funding up to 75% of total eligible project costs.
What is the maximum amount of a loan guarantee?
The loan guarantee percentage is published annually in a Federal Register notice. REAP loans approved in Fiscal Year 2024 will receive an 80 percent guarantee.
What are the loan guarantee terms?
The lender, with Agency concurrence, will establish and justify the guaranteed loan term based on the use of guaranteed loan funds, the useful economic life of the assets being financed and those used as collateral, and the borrower’s repayment ability. The loan term will not exceed 40 years.
What are the interest rates for the loan guarantee?
- Interest rates are negotiated between the lender and borrower.
- Rates may be fixed or variable.
- Variable interest rates may not be adjusted more often than quarterly.
What are the applicable fees for the loan guarantee?
- There is an initial guarantee fee, currently 1 percent of the guaranteed amount.
- There is a guarantee retention fee, currently 0.25 percent of the outstanding principal balance, paid annually.
- Reasonable and customary fees for loan origination are negotiated between the borrower and lender.
What are the underwriting requirements for the loan guarantee?
- The lender will conduct a credit evaluation using credit documentation procedures and underwriting processes that are consistent with generally accepted prudent lending practices and also consistent with the lender’s own policies, procedures and lending practices.
- The lender’s evaluation must address any financial or other credit weaknesses of the borrower and project and discuss risk mitigation requirements.
- The lender must analyze all credit factors to determine that the credit factors and guaranteed loan terms and conditions ensure guaranteed loan repayment.
- Credit factors to be analyzed include but are not limited to character, capacity, capital, collateral, and conditions.
What are the grant terms?
Renewable Energy System Grants:
- $2,500 minimum.
- $1 million maximum.
Energy Efficiency Grants:
- $1,500 minimum.
- $500,000 maximum.
Are there additional requirements?
- Applicants must provide matching funds if applying for a grant only.
- 50% Federal grant share limited to projects that meet one of the following:
- Project is a Renewable Energy System (RES), or RES retrofit that produces zero greenhouse gas emissions (Carbon Dioxide, Methane, Nitrous Oxide, or Fluorinated Gases) at the project level.
- Project is located in an Energy Community as defined in 26 USC 45(b)(11)(B) and determined by the Department of the Treasury.
- Project is an Energy Efficiency Improvement (EEI).
- Is a project proposed from an eligible Tribal Corporation or other Tribal Business entity (including agriculture operations) as described in 7 CFR part 4280.
- All other projects are limited to 25% Federal grant share
- 50% Federal grant share limited to projects that meet one of the following:
- Applicants must provide at least 25 percent of the project cost if applying for loan.
- All projects must have technical merit and utilize commercially available technology.
- Energy efficiency projects require an energy audit or assessment.
- All projects require an environmental review prior to award or construction
How do we get started? Applications for this program are accepted year-round at your local office.
Who can answer questions?
Contact your State Rural Development Energy Coordinator
What law governs this program?
- Grants – Code of Federal Regulation, 7 CFR Part 4280 -- Loans and Grants
- Guaranteed Loans – Code of Federal Regulation, 7 CFR 5001.
- This program is authorized by Title IX of the
Why does USDA Rural Development do this?
This program helps increase American energy independence by increasing the private sector supply of renewable energy and decreasing the demand for energy through energy efficiency improvements. Over time, these investments can also help lower the cost of energy for small businesses and agricultural producers.
NOTE: Because citations and other information may be subject to change, please always consult the program regulations listed in the section above titled “What law governs this program?” You may also contact your local office for assistance.
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