The U.S. Department of Agriculture's Rural Energy for America Program (REAP) provides grant funding and guaranteed loan financing to rural small businesses, farms, and ranches for energy efficiency upgrades and renewable energy projects.

• For energy efficiency improvements, grant requests can be between $1,500 and $250,000. 

• For renewable energy projects, grant requests can be between $2,500 and $500,000.

• Agricultural producers and small businesses can also qualify to receive REAP Guaranteed Loan Assistance of $5,000 to $25MM. 

If you qualify, you can get a grant for up to 25 percent of your total eligible project costs. In addition, you may qualify for a guaranteed loan for up to 75% of your total eligible project costs. (Combined grant and loan funding up to 75% of total eligible project costs.)

Who qualifies for REAP grants and loans? 

For-profit businesses located in rural areas with a population of less than 50,000.

• Agricultural producers must receive 51% or more of their gross income from agricultural production (crops, livestock, aquaculture, forestry operations, nurseries, and dairies).

• Small businesses must meet the Small Business Administration (SBA) small business size standard. To find this, look for the four- to six-digit NAIC code on your income tax form.  

What are the steps to qualifying for REAP grants and loans?

1. Register for DUNS and SAM codes. You’re required to submit a Dun & Bradstreet (DUNS) number on your USDA REAP grant application. If you don’t have a DUNS number, you can register your business for free here. You will also need to register for a Unique Entity ID (SAM). There should be NO COST involved in obtaining a DUNS or SAM code.

2. Gather your electric, gas, and water bills. After registering for your DUNS and SAM codes, it’s time to collect at least one year (three is preferred) of electric, natural gas, and water bills.

3. Apply. Contact the USDA Rural Development Energy Coordinator in your state for application materials. (Millig Design Build can help you navigate this process.)

It’s important to note that you will want to apply for a REAP grant BEFORE the implementation of any upgrades. (Any orders, purchases, down payments, etc… completed before the REAP application is submitted to USDA are not eligible for reimbursement.)