This post is part of a series of posts designed to help you acquire a loan for your small business. The following posts cover methods for public financing of your small business
Loans, loan guarantees and grants are available to help agricultural producers and rural small business purchase renewable energy systems and make energy efficiency improvements. Rural is defined as an area of less than 50,000 in population or its immediately adjacent incorporated communities.
Renewable energy means energy derived from wind, solar, biomass, hydro-power or a geothermal source; or hydrogen derived from biomass or water using one of those energy sources. Biomass includes agricultural crops; trees grown for energy production; wood waste and wood residues; plants (including aquatic plants and grasses); residues; fibers; animal wastes and other waste materials; and fats, oils, and greases. Biomass does not include paper that is commonly recycled or unsegregated solid waste.
The amount of the grant cannot exceed 25 percent of the cost of the activity funded under this program. To be eligible for a grant, the applicant must demonstrate financial need. Applications for renewable energy systems must be for a minimum grant request of $2,500, but no more than $500,000. Applications for energy efficiency improvements must be for a minimum grant request of $1,500, but no more than $250,000. Individual applicants must be citizens of the U.S. or reside in the U.S. after being legally admitted for permanent residence.
CREDITS: This is an excerpt from A Guide to Starting a Business in Minnesota, provided by the Minnesota Department of Employment and Economic Development, Small Business Assistance Office, Twenty-eighth Edition, January 2010, written by Charles A. Schaffer, Madeline Harris, and Mark Simmer. Copies are available without charge from the Minnesota Department of Employment and Economic Development, Small Business Assistance Office.