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

Rural Energy for America Program (REAP) Renewable Energy Systems and Energy Efficiency Improvement (RES/EEI) Grants

Agency Type:

Federal

Funding Source:

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United States Department of Agriculture (USDA) - Rural Development

Deadline Date:

03/31/22 - 4:30 PM local time.

Description:

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Grants and loans to USA, Puerto Rico, and Virgin Islands agricultural producers and small non-urban businesses for environmentally friendly energy solutions. Applicants are advised that required registrations must be completed prior to applying. Funding is intended for installing renewable energy systems or making energy efficiency improvements. Agricultural producers may also apply for new energy efficient equipment and new system loans for agricultural production and processing.

Eligible borrowers are:

  • Rural small businesses.
  • Agricultural producers.

Eligible areas:

  • Businesses must be in located in rural areas with populations of 50,000 residents or less. 
  • Agricultural producers may be in rural or non-rural areas.

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 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.

Agricultural producers may also use guaranteed loan funds to install energy efficient equipment and systems for agricultural production or processing.

The Agency encourages applicants to consider projects that will advance the following key priorities:

  • Assisting Rural communities recover economically from the impacts of the COVID–19 pandemic, particularly disadvantaged communities.
  • Ensuring all rural residents have equitable access to RD programs and benefits from RD funded projects.
  • Reducing climate pollution and increasing resilience to the impacts of climate change through economic support to rural communities.

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 energy costs for small businesses and agricultural producers.

GrantWatch ID#:

GrantWatch ID#: 170109

Estimated Total Program Funding:

$50,000,000

Number of Grants:

The estimated number of awards is 1,000 based on the historical average grant size.

Estimated Size of Grant:

Available funding:
- 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% of total eligible project costs.

Loan guarantee amounts:
- REAP loans approved in Fiscal Year 2021 will receive an 80 percent guarantee.

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

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

Term of Contract:

Project Period: Up to 24 months for grants. Guaranteed loans are governed by the loan terms.

The loan term will not exceed 40 years.

Interest Rates:
- Interest rates are negotiated between the lender and borrower.
- Rates may be fixed or variable.
- Variable interest rates may not be adjusted more often than quarterly.

Additional Eligibility Criteria:

Eligible applicants:
- 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.

Pre-Application Information:

Applications for Grants of $20,000 or Less and Loan/Grant of $20,000 or Less Combo Applications due by Nov. 1, 2021, or March 31, 2022.

Applications for Unrestricted Grants or Loan/Unrestricted Grant Combo Applications due by March 31, 2022.

Anticipated Award Date: Prior to September 30, 2022.

Please speak to a Rural Development Energy Coordinator before attempting to fill out any forms or applications. This will save you valuable time in the process.

To complete an application for this program, you must be pre-registered with the System for Award Management (SAM) and also have a Data Universal Number System (DUNS) number. Neither of these applications cost money, but they can take time so be sure to get this taken care of right away.

Contact Information:

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

Applications for this program are accepted at your local office.
State Offices: https://www.rd.usda.gov/page/state-offices

For questions, contact your State Rural Development Energy Coordinator. See the complete list of coordinators in Supporting Documents below.

Deb Yocum, Program Management Division
Rural Business-Cooperative Service
United States Department of Agriculture
2920 East Court Street, Suite 3
Beatrice, NE 68310

402–499–1198 or email CPgrants@usda.gov

CFDA Number:

10.868

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;   North Carolina;   North Dakota;   Ohio;   Oklahoma;   Oregon;   Pennsylvania;   Rhode Island;   South Carolina;   South Dakota;   Tennessee;   Texas;   Utah;   Vermont;   Virginia;   Washington;   West Virginia;   Wisconsin;   Wyoming

Array ( [0] => Puerto Rico (USA); [1] => Virgin Islands (USA); )

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

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