USDA – Rural Energy for America Program (REAP) Loan Guarantees
| Jurisdiction: |
Federal
|
| Incentive Type: | Loan Program |
| Industries: |
Energy, Infrastructure, Agricultural, Technology
|
| Eligible Sector: |
Business
|
| Category: |
Financial Incentive
|
| Time Period: |
FY 2015
|
| Governing Body: | U.S. Department of Agriculture Rural Development |
| What’s it worth?: | $25 million per loan guarantee |
The Rural Energy for America Program (REAP) Loan Guarantees are available for agricultural producers with a minimum of 50% of their gross income coming rom agricultural operations and small businesses identified in specific rural areas. The program provides grants of up to $20,000, unrestricted grants of up to $500,000 through May 6, 2016, and loan guarantees continuously throughout the year.
Loan guarantees are available for up to 75% of the total eligible project cost with loan amounts between $5,000 and $25 million; maximum terms may range from seven to 30 years depending on loan specifications. Funds awarded from this program may be used to purchase, install, and construct:
- Renewable Energy Systems
– Biomass
– Geothermal for electric generation or direct use
– Hydropower below 30 megawatts
– Wind Generation
– Solar Generation
– Ocean Generation
- Energy Efficiency Improvements
– High efficiency heating
– Insulation
– Lighting
– Cooling or refrigeration units
– Doors
– Windows
– Electric pumps
– Solar pumps
– Gravity pumps
– Upgrades from diesel to electric irrigation motor
– Replacement of energy-inefficient equipment
To get started with this program, participants can submit an application at the local USDA office year around.
