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Rural Energy for America Program (REAP) Renewable Energy Systems and Energy Efficiency Improvement Loans and Grants

Grants and Loans to USA Agricultural Producers and
Small Rural Businesses for Energy Improvements

Agency Type:


Funding Source:

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United States Department of Agriculture (USDA) - Rural Development

Deadline Date:

04/01/19 4:30 PM Local time - Deadline for Grant requests; Loan requests are accepted on an ongoing basis.


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Grants starting at $1,500 and loan guarantees starting at $5,000 to USA, Virgin Islands, and Puerto Rico agricultural producers and small rural businesses to improve energy efficiency by installing renewable energy systems or making energy efficiency enhancements. Funds may be used for the purchase, installation and construction of renewable energy systems, such as:

- 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

This program helps increase American energy independence by increasing the private sector supply of renewable energy and decreasing the demand for energy through energy efficiency improvements. Over time, these investments can also help lower the cost of energy costs for small businesses and agricultural producers.

GrantWatch ID#:

GrantWatch ID#: 170109

Estimated Total Program Funding:


Number of Grants:


Estimated Size of Grant:

Loan guarantees:

- $5,000 minimum loan amount.
- $25,000,000 maximum loan amount.
- Up to 85% loan guarantee.
- Rates and terms negotiated with the lender and subject to USDA approval.


Renewable Energy System Grants:
- $2,500 minimum.
- $500,000 maximum.

Energy Efficiency Grants:
- $1,500 minimum.
- $250,000 maximum

Term of Contract:

Loan guarantees:

- Maximum term of 30 years for real estate.
- Maximum term of 15 years, or useful life, for machinery and equipment.
- Maximum term of 7 years for capital loans.
- Maximum term of 30 years for combined real estate and equipment loans.


Additional Eligibility Criteria:

This program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses to purchase or install
renewable energy systems or make energy efficiency improvements.

Eligible applicants:

- Agricultural producers with at least 50% of gross income coming from agricultural operations, and
- Small businesses in eligible rural areas (see below).

NOTE: Agricultural producers and small businesses must have no outstanding delinquent federal taxes, debt, judgment or debarment.

Eligible areas:

- Businesses must be in an area other than a city or town with a population of greater than 50,000 inhabitants and the urbanized area of that city or town. Check eligible business addresses:
- Agricultural producers may be in rural or non-rural areas

Pre-Application Information:


Renewable Energy Systems and Energy Efficiency Improvements Grants ($20,000 or less grant only request or a combination grant and guaranteed loan where the grant request is $20,000 or less competing for the remaining set aside funds) - Application period: November 1, 2018 to April 1, 2019.*

Renewable Energy Systems and Energy Efficiency Improvements Grants (Unrestricted grants, including combination grant and guaranteed loan where the grant request is greater than $20,000) - Application period:
May 1, 2018 to April 1, 2019.

Renewable Energy Systems and Energy Efficiency Improvements Guaranteed Loans: Continuous application cycle. All unfunded eligible
guaranteed loan-only applications received that do not score at least 40
points will be competed against other guaranteed loan-only applications from other States at a final national competition, if the guaranteed loan reserves have not been completely depleted, on September 2, 2019.

Grant applicants must be registered in SAM prior to submitting a grant application; which can be obtained at no cost via a toll-free request line at (866) 705–5711 or online at Registration of new entities in SAM requires an original, signed notarized letter stating that you are the authorized Entity Administrator before your registration will be activated.

To ensure that small projects have a fair opportunity to compete for the funding and are consistent with the priorities set forth in the statute, the Agency will set-aside not less than 20 percent of the FY 2019 funds until June 29, 2019, to fund grants of $20,000 or less.

Additional requirements:

- Applicants must provide at least 75% of the project cost if applying for a grant only.
- Applicants must provide at least 25% of the project cost if applying for loan, or loan and grant combination.
- Projects greater than $200,000 require a technical report.
- Energy efficiency projects require an energy audit or assessment.

All grant applications must be submitted either as hard copy to the appropriate Rural Development Energy Coordinator in the State in which the applicant’s proposed project is located, or electronically using the Governmentwide website.

All guaranteed loan applications must be submitted as a hard copy to the appropriate Rural Development Energy Coordinator in the State in which the applicant’s proposed project is located.

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Contact Information:

Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.

To apply via the state coordinators, see the pdf in Supporting Documents below.

For information about this Notice, please contact:

Anthony Crooks, Rural Energy Policy Specialist
USDA Rural Development, Energy Division
1400 Independence Avenue SW
Stop 3225, Room 6870
Washington, DC 20250
Telephone:(202) 205–9322.

State offices:

CFDA Number:


Funding or Pin Number:


URL for Full Text (RFP):

Geographic Focus:

USA: Alabama;   Alaska;   Arizona;   Arkansas;   California;   Colorado;   Connecticut;   Delaware;   Florida;   Georgia;   Hawaii;   Idaho;   Illinois;   Indiana;   Iowa;   Kansas;   Kentucky;   Louisiana;   Maine;   Maryland;   Massachusetts;   Michigan;   Minnesota;   Mississippi;   Missouri;   Montana;   Nebraska;   Nevada;   New Hampshire;   New Jersey;   New Mexico;   New York City;   New York;   North Carolina;   North Dakota;   Ohio;   Oklahoma;   Oregon;   Pennsylvania;   Rhode Island;   South Carolina;   South Dakota;   Tennessee;   Texas;   Utah;   Vermont;   Virginia;   Washington;   West Virginia;   Wisconsin;   Wyoming

USA Territories: Puerto Rico (USA)   Virgin Islands (USA)