Together, America Prospers 

Rural Energy for America Program (REAP) 

Renewable Energy & Energy Effciency 

Loan guarantees for this program are streamlined under the OneRD Guarantee Loan Initiative 

What does this 

program do? 

The program provides guaranteed 

loan fnancing and grant funding 

to agricultural producers and 

rural small businesses for 

renewable energy systems 

or to make energy effciency 

improvements. Agricultural 

producers may also apply for new 

energy effcient equipment and 

new system loans for agricultural 

production and processing. 

Who may apply 

for this program? 

• Agricultural producers with 

at least 50 percent of their 

gross income coming from 

agricultural operations. 

• Small businesses in eligible 

rural areas. 

NOTE: Agricultural producers and 

small businesses must have NO 

outstanding delinquent federal taxes, 

debt, judgment or debarment. 

Who may qualify for 

loan guarantees? 

Eligible borrowers are: 

• Rural small businesses. 

• Agricultural producers. 

Additional entities may be eligible for 

other types of loan guarantees under 

the OneRD Guarantee Loan Initiative. 

What are the borrowing restrictions 

for loan guarantees? 

• Individual borrowers must be 

citizens of the United States or 

reside in the U.S. after being legally 

admitted for permanent residence. 

• Private-entity borrowers must 

demonstrate that loan funds will 

remain in the U.S. 

What is an eligible area? 

• Businesses must be in located 

in rural areas with populations of 

50,000 residents or less. 

• 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 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 effciency improvements, 

such as: 

• High effciency 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-ineffcient 

equipment. 

Agricultural producers may also use 

guaranteed loan funds to install energy 

effcient equipment and systems for 

agricultural production or processing. 

What funding is available? 

• Loan guarantees on loans up to 

75 percent of total eligible project costs. 

• Grants for up to 25 percent of total 

eligible project costs. 

• Combined grant and loan guarantee 

funding up to 75 percent of total 

eligible project costs. 

What is the maximum amount of a 

loan guarantee? 

The loan guarantee percentage 

is published annually in a 

Federal Register notice. 
OneRD Guarantee Loan Initiative: 

Rural Energy for America Program (REAP) 

Renewable Energy & Energy Efficiency 

How do we get started? 

Applications for this program are 

accepted year-round at your local offce. 

Who can answer questions? 

Contact your State Rural Development 

Energy Coordinator. 

What law governs this program? 

• Grants – Code of Federal 

Regulation, 7 CFR 4280, Subpart B. 

• Guaranteed Loans – Code of 

Federal Regulation, 7 CFR 5001. 

• This program is authorized by 

Title IX of the 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 effciency 

improvements. Over time, these 

investments can also help lower the 

cost of energy for small businesses 

and agricultural producers. 

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

please always consult the program regulations listed in the section above titled 

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

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

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

September 2020