Empowering Rural America New ERA Program by the IRA

Grantee Type: Rural Development

Funding:

You can apply for the following types of financial assistance:

Loan only: The interest rate for loans will be set either at the U.S. Treasury rate or at a fixed rate as low as 2 percent. Treasury interest rates are set at the time funds are drawn. These rates are set periodically. A zero percent interest rate is available to refinance stranded assets or for projects that serve predominantly distressed, disadvantaged, or energy communities (as defined in the funding notice).Grant only: Applicants can apply for a grant only that equals no more than 25 percent of the total project cost. Applicants would have to demonstrate the ability to meet the remaining 75 percent of the project cost.Loan and Grant Combinations: Applicants can request loan and grant combination financing for proposed projects.

Loan Refinancing or Loan Modification: In addition to loan and grant combinations, applicants may propose to refinance debt related to a stranded asset if the applicant utilizes the refinancing savings to fund an eligible project. No single borrower or awardee can receive more than 10 percent of the available funding, which is $970 million of the $9.7 billion available in this program.

Qualifications:

The New ERA program is available only to rural electric cooperatives, including:

Existing or former USDA Rural Utilities Service (RUS) borrowersBorrowers of the former Rural Electrification AdministrationRural electric cooperatives that serve predominantly rural areasWholly or jointly owned subsidiaries of rural electric cooperativesNote: For the purposes of the New ERA program, the term “predominantly rural” means a service territory where at least 50 percent of its consumers are rural.

To create opportunities for rural electric cooperatives of all sizes – and to ensure cooperatives compete only against their peers – New ERA applicants are separated into three categories:

Category 1: Total utility plant value equal to or more than $500 millionCategory 2: Total utility plant value more than $200 million and less than $500 millionCategory 3: Total utility plant value equal to or less than $200 million

Deadline to Apply:

The application window is open from July 31 through August 31, 2023.