Eligible borrowers:
Rural development borrowers, RUS utilities

Eligible systems:
Solar thermal, PV

Loan Amount
$300,000 (avg.)

Terms:
10 years

Interest Rates:
0%

Collateral:
As negotiated with the RUS borrower

For more Info:
1(202) 720-4323
www.usda.gov

U.S. Department of Agriculture

The U.S. Department of Agriculture (USDA) Rural Development Mission Area is committed to helping improve the economy and the quality of life in all of rural America. Its financial programs support such essential public facilities and services as water and sewer systems, housing, health clinics, emergency service facilities, and electric and telephone service.

The USDA promotes economic development by supporting loans to businesses through banks and community- managed lending pools. The department offers technical assistance and information to help agricultural and other cooperatives get started, improve the effectiveness of their member services, and help communities undertake community empowerment programs.

The USDA Rural Development Mission Area offers these three services: Rural Housing Service (RHS), Rural Business-Cooperative Service, and Rural Utilities Service (RUS). Through RHS, Farmer Mac (formerly the Farmers Home Administration or FmHA) guarantees and insures loans in rural areas. Farmer Mac provides a secondary market for agricultural real estate and rural housing mortgage loans. The RHS offers the following programs: Community Facilities Loans, Resource Conservation and Development Loans, Home Ownership Loans, Rural Rental Housing Loans, Home Improvement and Repair Loans and Grants, Self -Help Housing Loans, Rural Housing Site Loans, and Farm Labor Housing Loans and Grants.

The Rural Business -Cooperative Service offers Business and Industry Guaranteed and Direct Loans, Intermediary Relending Program Loans, Rural Business Enterprise Grants, Rural Economic Development Loans and Grants, and Rural Cooperative Development Grants. Rural Business Cooperative Service programs are designed to facilitate the development of' small business enterprises and other economic opportunities in rural areas. Public bodies, nonprofit corporations, and Indian Tribal groups are eligible for all programs; other legally organized entities (cooperatives, partnerships, trust, of profit entities) are also eligible under Business and Industry Guaranteed and Direct Loan Programs.

The Rural Business-Cooperative Service offers a "'Rural Economic Development Loan Program" that provides zero-interest loans to RUS borrowers to promote rural economic development and create jobs. The maximum loan amount depends on the amount of funds available each fiscal year. Recently, the average loan has been $300,000. The Rural Economic Development Grant Program provides grants to RUS borrowers to promote economic development. Grants are used to establish revolving loan funds to provide infrastructure or community facilities in rural areas that will lead to economic stability.

RUS also administers two electric loan programs: the Guaranteed Program and the Direct Loan Program. The Guaranteed Program is used primarily by power supply cooperatives or borrowers and is a 100% loan guarantee program. The interest rate is based on the Treasury yield curve (20-30 years). There is $300 million available in this program. The Direct Loan Program is based on appropriations from Congress. The interest rate is based on the municipal bond rate for AA utilities. Photovoltaics is an eligible technology (including grid-independent systems) for RUS loan programs. The 60 electricity generation & transmission companies and 800 cooperatives are eligible for this loan program.


Information Provided by the U.S. Department of Energy

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