Rural Energy for America Program (REAP)

REAP is a grant and loan guarantee program for agricultural producers and rural small businesses

Program details:

  • Applications are accepted year-round.
    • Guaranteed loan applications are funded on a monthly basis.
    • FY 2023 grant application deadlines: 
      • October 31, 2022
      • March 31, 2023
  • The applicant must be either an agricultural producer or rural small business.  
    • Agricultural Producer: A person, including non-profits, directly engaged in the production of agricultural products through labor management and operations, including the cultivating, growing, and harvesting of plants and crops (including farming); breeding, raising, feeding, or housing of livestock (including ranching); forestry products; hydroponics; nursery stock; or aquaculture, whereby 50% or greater of their gross income is derived from the operations. 
    • Rural Small Business: A small business that is located in a rural area or that can demonstrate the proposed project for which assistance is being applied for is located in a rural area.
      • Please visit the Small Business Administration at the following website to identify your specific industry and the associated size standard: SBA Table of Size Standards
      • Enter your project site address at the following website to ensure your project resides in an eligible rural area: Eligibility (usda.gov)
  • Residential purposes are NOT eligible.
    • If the renewable energy system (RES) project shares a meter with a residence, the applicant must be able to demonstrate that 50% or more of the energy to be generated by the RES project will be used by the agricultural operation or rural small business.
      • This demonstration is based on historical energy use. The following home energy calculator site can be utilized to support residential use: Home Energy Saver (lbl.gov) 
  • Energy efficiency improvement (EEI) projects with total project costs greater than $200,000 will require an energy audit. (RD Instruction 4280-B Appendix A Section B provides Energy Audit guidance) EEI projects with total project costs less than $200,000 will require an energy assessment. (RD Instruction 4280-B Appendix A Section C provides Energy Assessment guidance)

 

  • Eligible project costs are only those costs incurred after a complete application has been received by the Agency.  
    • Please note that a cost will be considered incurred when payment for costs associated with the project have been issued. If payment was in the form of a check, the date of the check (date written) will be considered the date the cost was incurred. If payment was in the form of an electronic payment, the date that the payment was issued from the grantee/producer/borrower account will be considered the date the cost was incurred.
  • After the application has been received, the file will be reviewed to determine if the application is complete. A letter will be sent to the applicant notifying them that they may proceed with the project, but doing so does not guarantee that the project will be funded.

 

Forms and additional program information can be found on the REAP website.

 

FACT SHEET

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