The USDA Rural Energy for America Program (REAP) provides loan and grant funding to rural small businesses and agricultural producers for renewable energy systems or to make energy efficiency improvements. While loan applications are accepted on a continuous cycle, Unrestricted Grants or Loan/Unrestricted Grant Combo applications are due by March 31, 2021.
The program aims to 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 help lower the cost of energy for small businesses and agricultural producers.
REAP funds may be used for renewable energy systems — such as biomass production (biodiesel, ethanol, etc.) and wind or solar generation, among others — or for the purchase, installation, and construction of energy-efficient improvements. Examples of energy efficiency include improvements to HVAC systems, insulation, lighting, and replacement of energy-inefficient equipment.
Grants for renewable energy systems range from $2,500 to $500,000. Grants for energy efficiency improvements range from $1,500 to $250,000. Grant applicants must provide at least 75 percent of the project cost.
Eligible businesses must be located in rural areas with populations of 50,000 residents or less. Agricultural producers may be in rural or non-rural areas.