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USDA Rural Energy for America Program (REAP)

USDA Rural Energy for America Program (REAP)

Improve your energy efficiency with a REAP grant or loan.

The REAP program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements. Agricultural producers may also apply for new energy efficient equipment and new system loans for agricultural production and processing.

How can REAP grants and guaranteed loans be used? Eligible uses include, but are not limited to: 
  • Biomass (for example: biodiesel and ethanol, anaerobic digesters, and solid fuels)
  • Geothermal for electric generation or direct use
  • Hydropower below 30 megawatts
  • Hydrogen
  • Small and large wind generation
  • Small and large solar generation
  • Ocean (tidal, current, thermal) generation
Funds may also be used for the purchase, installation, and construction of energy efficiency improvements, such as:
  • High efficiency heating, ventilation and air conditioning systems (HVAC)
  • Insulation
  • Lighting
  • Cooling or refrigeration units
  • Doors and windows
  • Electric, solar or gravity pumps for sprinkler pivots
  • Switching from a diesel to electric irrigation motor
  • Replacement of energy-inefficient equipment
Agricultural producers may also use guaranteed loan funds to install energy efficient equipment and systems for agricultural production or processing.

What is considered an eligible area?
  • Rural areas not in a city or town with a population of more than 50,000 inhabitants, with certain exceptions
  • The borrower’s headquarters may be based within a larger city as long as the project is located in an eligible rural area

Who may qualify for REAP loan guarantees?
  • Rural small businesses
  • Agricultural producers

Additional entities may be eligible for other types of loan guarantees under the OneRD Guarantee Loan Initiative.

Are there additional requirements for REAP?
  • Individual borrowers must be citizens of the United States or reside in the U.S. after being legally admitted for permanent residence
  • Private-entity borrowers must demonstrate that loan funds will remain in the U.S.

Contact our REAP grant and loan lending expert.

Clayton Summers

Renewable Energy Finance Team Lead

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