BANGOR — The U.S. Department of Agriculture Rural Development Program is accepting applications for the Rural Energy for America Program loans and grants in Maine.

Funds are available to assist agricultural producers and rural small businesses with the acquisition and installation of renewable energy systems and/or to make energy efficiency improvements to existing business facilities.

Under REAP, USDA Rural Development can offer grants for up to 25 percent of eligible project costs, or combine grants and guaranteed loans issued by qualified lenders for up to 75 percent of project costs. Loan guarantees can provide support to private lenders and favorable rates and terms to borrowers.

Eligible technologies include anaerobic digestion, biomass, small wind, large wind, hydrogen, small solar, large solar, geothermal (direct use) and geothermal (electrical generation). They also include a variety of energy efficiency upgrades from mechanical systems and equipment to insulation and replacement lighting, windows and doors.

For fiscal year 2011, Maine has been allocated $177,000 for grants of $20,000 and less, another $306,000 for grants over $20,000 and $599,000 for guaranteed loans. Public entities, nonprofit corporations and residential properties do not qualify for REAP.

Applications are due to the Maine state office on or before May 1. For information or application materials, contact John Sheehan at [email protected] or Beverly Stone at [email protected] or call 990-9168.

In Maine, USDA Rural Development has area offices in Presque Isle, Bangor, Lewiston and Scarborough, as well as a state office located in Bangor.