Who Qualifies for USDA REAP Grants and Loans? | EnergyLink
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Who Qualifies for USDA REAP Grants and Loans?


The U.S. Department of Agriculture (USDA) Rural Energy for America Program (REAP) guarantees loan financing and grant funding to agricultural producers and small businesses in rural areas for renewable or energy efficiency projects. USDA REAP grants and loans were created with the goals of increasing energy dependence in the U.S., decreasing energy demand and lowering energy costs for small businesses and agricultural producers. This program guarantees loans under the OneRD Guarantee Loan Initiative.

Who qualifies for USDA REAP?

To qualify for a USDA REAP grant or loan you must be either an agricultural producer or a rural small business in an eligible area with no outstanding delinquent federal taxes, debt judgement or debarment. Individual borrowers must also be U.S. citizens or legal residents and private-entity borrowers have to demonstrate that the loan funds will remain in the U.S.

Agricultural producers may be in rural or non-rural areas and have the additional ability to apply for new energy efficiency equipment and new system loans for agricultural production and processing.

Small businesses are only eligible if they are located in a rural areas with a population of 50,000 or less or an “urbanized area contiguous and adjacent to such a city or town” as defined by the U.S. Bureau of the Census.

Both of the parties described above are eligible for loan guarantees, grants and a combination of both under REAP. Loan guarantees on loans up to 75% of total project costs, grants for up to 25% of project costs and a combination of funding for up to 75% of total project costs are all available options.

What qualifies for USDA REAP funding?

Renewable, energy efficiency systems and agricultural production & processing equipment can all qualify for USDA REAP funding. Some examples of specific equipment are listed below.

  • Renewable systems: biomass, geothermal (electric generation or direct use), hydrogen, hydropower (below 30 MW), wind power, solar power, ocean power generation
  • Energy efficiency systems: HVAC, LED lighting, insulation, windows and doors, cooling or refrigerations units, pumps for sprinkler pivots, inefficient equipment replacements

Learn more

To learn more about USDA REAP funding and eligibility head to their website. To start a project leveraging USDA REAP grants and loans click here. If you are interested in more renewable and energy efficiency funding options click the button to learn more.

 EnergyLink is a certified National Energy Service Company (ESCO) that designs projects for commercial and industrial entities. We will be your partner throughout each stage of your project. Our team has extensive experience managing complex & integrated project installations and we offer a variety of financial modeling and project funding opportunities. 

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