Department of agriculture loans plan from USDA to aid rural consumers

The U.S. Department of Agriculture plans to make $250 million in low-interest loans open to retrofit residences and businesses in rural communities to improve their energy efficiency, the company announced Wednesday.

Through the Energy Efficiency and Loan Conservation Program, the USDA can make the money available to rural energy cooperatives, which will offer you loans to business and residential customers.

Starting in 2019, cooperatives will be able to apply for $250 million in loans that consumers will be able to use for such small remodels as upgrading old and inefficient heating and air-conditioning units, installing solar panels or improving lighting.

In an interview, Agriculture Secretary Tom Vilsack said numerous aging homes in rural America require renovations which will reduce energy consumption.

“When you look at the challenges that rural families have when it comes to their income differential with urban and suburban families, anything that allows these to save money ought to be pursued,” said Vilsack. “I am betting as this unfolds during the next 12 months, this is going to be a pretty popular program.”

The former Iowa governor said this program would cut back energy costs for rural electric cooperatives, assisting to keep rates low for area residents. Consumers would cut costs his or her energy consumption falls. Additionally they would benefit from financing they are able to pay back through savings on their energy bills.

The USDA said theprogram is patterned after a similar one out of Sc.

Vilsack said funding for the program is guaranteed for 2019, but future money will depend on whether Congress is able to finish focus on a farm bill.

“This is yet another program whose fate is sort of dependent on Congress getting its work done,” he explained.

The program is among several being run through the USDA to boost energy efficiency in rural communities.

Among them is the Rural Energy for America Program, the USDA’s flagship renewable energy program, which has given out $400 million in loans and grants since 2009 to farms and smaller businesses to create energy improvements.