Together, America Prospers 

Rural Energy for America Program 

Renewable Energy & Energy Efficiency 

Immediate Measures 

to Support Rural 

Communities Affected 

by COVID-19 

• Did you know REAP can help 

businesses by helping them 

lower their energy costs so they 

can provide essential services? 

• For information on how the 

Rural Energy for America 

Program might be able to help 

your business, please contact 

your State Rural Development 

Energy Coordinator. 

What does this 

program do? 

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. 

Who may apply? 

• Agricultural producers with 

at least 50% of gross income 

coming from agricultural 

operations, and 

• Small businesses in 

eligible rural areas. 

NOTE: Agricultural producers 

and small businesses must 

have no outstanding delinquent 

federal taxes, debt, judgment, 

or debarment. 

What is an eligible area? 

• 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. 

How may the funds be used? 

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 

What funding is available? 

• Loan guarantees on loans up to 

75% of total eligible project costs 

• Grants for up to 25% of total eligible 

project costs 

• Combined grant and loan guarantee 

funding up to 75% of total eligible 

project costs 

What are the loan guarantee terms? 

• $5,000 minimum loan amount 

• $25 million maximum loan amount 

• Up to 85% loan guarantee 

• Rates and terms negotiated with the 

lender and subject to USDA approval 

• 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 
Rural Energy for America Program 

Renewable Energy & Energy Efficiency 

What are the grant terms? 

Renewable Energy System Grants: 

• $2,500 minimum 

• $500,000 maximum 

Energy Efficiency Grants: 

• $1,500 minimum 

• $250,000 maximum 

Are there 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. 

How do we get started? 

Applications for this program 

are accepted year round 

at your local RD office. 

Who can answer questions? 

Contact your State Rural Development 

Energy Coordinator. 

What governs this program? 

• Basic Program – 7 CFR 4280, 

Subpart B 

• This program is authorized by 

Agricultural Improvement Act of 

2018, (2018 Farm Bill). 

Why does USDA Rural Development 

do this? 

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. 

NOTE: Because citations and other information may be subject to change, 

please always consult the program instructions listed in the section above 

titled “What Governs This Program?” You may also contact your local office for 

assistance. You will find additional forms, resources, and program information at 

rd.usda.gov. USDA is an equal opportunity provider, employer, and lender. 

Last Updated April 2020