Grants can fund up to 25% of the total eligible project cost. Loan guarantees and combination packages can fund up to 50% of the total eligible project cost. Minimums, maximums and eligible projects for the two project types are as follows:

Renewable Energy Systems –

• Grant – $2,500 to $500,000
• Loan Guarantee – $5,000 to $10 million
• Combination – $1,500 to $10,000,000
• Biomass; Anaerobic Digester; Geothermal – electric generation; Geothermal – direct use; Hydrogen; Small and Large Wind; Small and Large Solar

Energy Efficiency Improvements –

• Grant – $1,500 to $250,000
• Loan Guarantee – $5,000 to $10 million
• Combination – $1,500 to $10 million
• Energy Efficiency Improvements verified by an energy audit or assessment

Eligible costs for grants include:

1. Purchase and installation of equipment (new, refurbished, or remanufactured) except agricultural tillage equipment, used equipment and vehicles;
2. Construction or project improvements, except residential;
3. Energy audits or assessments;
4. Permit and license fees
5. Professional service fees, except for application preparation;
6. Feasibility studies and technical reports;
7. Business plans;
8. Retrofitting;
9. Construction of a new energy efficient facility only when the facility is used for the same purpose; is approximately the same size; and based on the energy audit will provide more energy savings than improving an existing facility.

Eligible costs for guaranteed loans include:

1. All eligible costs included in the Grants section;
2. Working capital;
3. Land acquisition.

For FY 2008 applications are due:

• Grants:  1st round due April 16, 2008; 2nd round due June 16, 2008
• Guarantees:  June 16, 2008
• Combination:  June 16, 2008

For more information go to www.rurdev.usda.gov/rbs/farmbill.

SMALL BUSINESS INNOVATION RESEARCH

USDA’s Small Business Innovation Research (SBIR) program makes competitively awarded grants to qualified small businesses to support high quality, advanced concepts research related to important scientific problems and opportunities in agriculture that could lead to significant public benefit if successful. The objectives of the SBIR are to:

• Stimulate technological innovations in the private sector;
• Strengthen the role of small businesses in meeting Federal research and development needs;
• Increase private sector commercialization of innovations derived from USDA supported research and development efforts; and
• Foster and encourage participation by women-owned and socially and economically disadvantaged small business firms in technological innovations.

There are 12 topic areas for USDA’s SBIR program:

1. Forests and Related Resources
2. Plant Production and Protection – Biology
3. Animal Production and Protection
4. Soil and Water Resources
5. Food Science and Nutrition
6. Rural Development
7. Aquaculture
8. Biofuels and Biobased Products
9. Marketing and Trade
10. Animal Manure Management
11. Small Mid Size Farms
12. Plant Production and Protection – Engineering

SBIR Phase I grants are limited to $80,000 and a duration of 8 months and are open to any small business (less than 500 employees). SBIR Phase II grants are limited to $350,000 and a duration of 24 months and are only open to previous Phase I awardees.

Examples of projects awarded for Phase I funding include (FYs 2006/2007):

Animal Production and Protection:

• Reducing In-Transit Losses in Swine by Modification of Electrolyte Balance Prior to Transportation
• Automated Vaccination of Broiler Chicken Flocks
• A New Litter Disinfectant for Poultry Pathogen Control

Marketing and Trade:

• Expanding Domestic and Export Markets for Open Ocean Aquaculture Products by Value-Adding
• Creating an Internet-Based Service for Merchandising Identity-Preserved Grains
• Identifying Marketing Strategies for a Farmstead Cooperative to Increase Goat Milk Soap and Skin Care Product Sales to Targeted Markets

Due dates for applications varies across the 12 topic areas and for Phase I and Phase II applications.

For more information go to www.csrees.usda.gov/funding/sbir/sbir.html.

Application Deadline: 9/4/2008

VALUE-ADDED PRODUCER GRANT

Applicants may apply for a planning grant or for a working capital grant, but not both. Applicants other than Independent Producers must limit their projects to Emerging Markets.

The maximum award for planning grants is $100,000 and for working capital grants is $300,000. Matching funds are required and must be at least equal to the amount of grant funds requested. Projects are expected to be completed within 12 months.

The proposed project must involve a value-added product. The definition of “value-added” includes four categories that increase the value that is realized from the producer from an agricultural commodity or product as the result of:

1. A change in its physical state;
2. Differentiated production or marketing, as demonstrated in an business plan;
3. Product segregation; or
4. The economic benefit realized from the production of farm- or ranch-based renewable energy.

Examples of eligible planning grant activities include:

• Obtaining legal advice and assistance related to the proposed venture;
• Conducting a feasibility study of a proposed value-added venture to help determine the potential marketing success of the venture;
• Developing a comprehensive business plan;
• Developing a marketing plan for the proposed value-added product.

Examples of eligible working capital grant activities include:

• Designing and purchasing an accounting system for the proposed venture;
• Paying for salaries, utilities, and rental of office space;
• Purchasing inventory, office equipment (e.g. computers, printers, copiers, scanners), and office supplies;
• Conducting a marketing campaign for the proposed value-added product.

For more information go to http://www.rurdev.usda.gov/rbs/coops/vadg.htm.