Together, America Prospers

Rural Energy for America Program 

Renewable Energy Systems and Energy Efficiency 

Loans and Grants 

Loan guarantees for this program are streamlined under the OneRD Guarantee Loan Initiative 

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 can also apply for new 

energy-efficient equipment and 

new system loans for agricultural 

production and processing.

Who can apply?

• Agricultural producers with 

at least 50 percent of their 

gross income coming from 

agricultural operations

• Small businesses in eligible 

rural areas

NOTE: Agricultural producers 

and small businesses must 

have NO outstanding delinquent 

federal taxes, debt, judgment, or 

debarment.

What types of borrowers are 

eligible?

Eligible borrowers include: 

• Rural small businesses

• Agricultural producers

Additional USDA Rural Development 

programs that support other types 

of businesses and organizations are 

included in the OneRD Guarantee 

Loan Initiative. You can learn more at 

this link: https://go.usa.gov/xJnfQ.

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?

• Businesses must be located in rural 

areas with populations of 50,000 or 

fewer. You can check our database 

of eligible business addresses at 

this link: https://go.usa.gov/xJnGQ.

• Agricultural producers can be 

located in rural or nonrural areas.

How can funds be used?

Funds can be used for 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 also can be used to buy, 

build, and install 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 an electric 

irrigation motor

• Replacement of energy-inefficient 

equipment

Agricultural producers can also 

use guaranteed loan funds to install 

energy efficient equipment and 

systems for agricultural production or 

processing.
OneRD Guarantee Loan Initiative: 

Rural Energy for America Program 

Renewable Energy and Energy Efficiency

What types of funding are 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 percent of total

eligible project costs

What is the maximum amount of a 

loan guarantee?

The loan guarantee percentage is 

published yearly in a notice in the 

Federal Register (available at this link: 

https://www.federalregister.gov/) 

How do we get started?

Applications are accepted year-round 

in your local USDA Rural Development 

office. A list of state offices is available 

at this link: https://go.usa.gov/xJnHR. 

Who can answer questions?

Your state-based USDA Rural 

Development Energy Coordinator can 

help answer your questions. A list is 

available at this link: 

https://go.usa.gov/xtBaj - PDF. 

What governs this program?

• Grants: 7 CFR 4280, Subpart B,

(available at this link:

https://tinyurl.com/5e8vy9sb)

• Guaranteed Loans: 7 CFR 5001,

(available at this link:

https://tinyurl.com/3rt4cp59)

• This program is authorized by Title

IX of the Agricultural Improvement

Act of 2018 (available at this link:

https://tinyurl.com/3hn26vy3), and

the Inflation Reduction Act of 2022

(available at this link:

https://tinyurl.com/26cv2tzc).

Why does USDA Rural Development 

do this?

This program helps increase American 

energy independence by increasing 

the private-sector supply of renewable 

energy, and by decreasing the 

demand for energy through energy 

efficiency improvements. Over time, 

these investments can also help lower 

the cost of energy costs for small 

businesses and agricultural producers.

NOTE: Because information changes, always consult official program instructions 

or contact your local Rural Development office for help. A list is available at this 

link: https://go.usa.gov/xJHPE. You will find additional resources, forms, and program 

information at https://rd.usda.gov. USDA is an equal opportunity provider, employer, 

and lender.

Last Updated March 2023