A federal agency is soliciting grant and loan guaranty applications for rural Hawai'i small businesses interested in purchasing or studying the feasibility of renewable energy systems.

Grants and loan guarantees are available to farmers, ranchers and any small business located in a rural area, which, as defined by the federal government, includes the whole state except for the area on O'ahu from Red Hill to Makapu'u Point.

Grants are available for up to 25 percent of a project's cost up to $250,000 for energy efficiency improvements and $500,000 for renewable energy systems.

The maximum guaranteed loan amount is $25 million.

A combination of grant funding and loan guaranty also is available and is limited to 75 percent of eligible project costs.

To qualify as a farmer or rancher, the company, including affiliates, must derive at least half of its total income from agricultural operations.

To qualify as a small business, the company, including affiliates, must meet U.S. Small Business Administration guidelines — available at http://sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf — based on income or employees.

All applicants must demonstrate financial need to be considered for funding under the Rural Energy for America Program operated by the U.S. Department of Agriculture's Rural Development division.

The application deadline is 4:30 p.m. July 31.

Applications may be obtained and submitted at grants.gov. Or contact Tim O'Connell at 808-933-8313 in Hilo or tim.oconnell@hi.usda.gov. Applications may be mailed to USDA Rural Development, Federal Building, Room 311, 154 Waianuenue Ave., Hilo, HI 96720.