Distributed Generation Energy Project Financing
The RUS Electric Program can provide loans and loan guarantees to energy project developers for distributed energy projects including renewables that provide wholesale or retail electricity to existing Electric Program borrowers or to rural communities served by other utilities. Electric Program project financing loans follow the same regulatory requirements and processes as do our traditional electric infrastructure loans and loan guarantees (also known as system loans or loans for rural electrification).
Distributed generation projects including generation from renewable resources are providing more power supply options for rural communities. There is growing interest among electric cooperatives to enter into power purchase agreements (PPAs) with project developers or to interconnect distributed generation projects directly into their systems.
Who may apply for financing?
- Energy project developers for distributed energy projects
- Electric Program borrowers or other utilities that serve rural areas
How may funds be used?
For project loans, there are three typical situations:
- Existing borrower (cooperative) owns and operates the project.
- A project developer builds and operates the project that has PPAs to serve rural customers such as existing RUS borrowers and/or other off-takers.
- A wholly-owned subsidiary of an existing RUS borrower owns and operates the project and has a PPA with the RUS borrower to take the entire output.
Category: Federal Programs, Loans, USDA Rural Development
What does this program do?
This program bolsters the existing private credit structure through the guaranteeing of loans for rural businesses, allowing private lenders to extend more credit than they would typically be able to.
Who may apply for this program?
Lenders...
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SBA provides low-interest disaster loans to businesses of all sizes, private non-profit organizations, homeowners, and renters. SBA disaster loans can be used to repair or replace the following items damaged or destroyed in a declared disaster: real estate, personal property, machinery and equipment, and inventory...
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The CDC/504 Loan Program provides financing for major fixed assets such as equipment or real estate.
CDC/504 Loan Program Eligibility
To be considered for Certified Development Company(CDC)/504 loan, applicants must meet these eligibility requirements:
Operate as a for-profit company
Do business...
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What does this program do?
RBDG is a competitive grant designed to support targeted technical assistance, training and other activities leading to the development or expansion of small and emerging private businesses in rural areas that have fewer than 50 employees and less than $1...
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The Rural Economic Development Loan (REDL) and Grant (REDG) programs provide funding to rural projects through local utility organizations. Under the REDLoan program, USDA provides zero interest loans to local utilities which they, in turn, pass through to local businesses (ultimate recipients) for projects that...
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What does this program do?
Provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses to purchase or install renewable energy systems or make energy efficiency improvements.
Who may apply?
Agricultural producers with at least 50% of...
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This program provides financing for the construction, maintenance, improvement and expansion of telephone service and broadband in rural areas. For more information on other programs administered by RUS Telecommunications please visit : http://www.rd.usda.gov/programs-services/all-programs/telecom-programs
Who may apply?
Most entities that provide telecommunications in qualified...
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