USDA – REAP Loan Guarantee Program

Rural Energy for America Program (REAP) – Renewable Energy & Efficiency Financing

Reset Funding partners with strategic partners to unlock clean energy capital for agricultural producers and rural small businesses. Through the USDA's REAP Guaranteed Loan Program, we help clients secure long-term, low-rate financing for renewable energy systems and energy efficiency improvements across rural America.

Program Overview

The USDA’s REAP Loan Guarantee Program is designed to promote energy independence and reduce energy costs for rural businesses and agricultural producers. The program incentivizes financing for renewable energy projects and energy efficiency improvements. Loans can be used to build, upgrade, or retrofit systems that lower utility bills, enhance sustainability, and increase operational resilience.

Eligible Borrowers

Borrowers must fall into one of the following categories:

• Agricultural producers individuals or entities directly engaged in ag production
• Rural small businesses located in areas with populations under 50,000 and must be for-profit

*Borrowers must own the project and project site and demonstrate sufficient revenue to support operations, maintenance, and loan repayment.

Eligible Projects

Renewable Energy Systems (RES)

Loan funds may be used for:

• New or existing renewable energy systems
• Refurbished renewable energy technologies
• Retrofits of existing RES assets

Examples:

• Installing solar panels or battery storage systems
• Upgrading wind turbine blades
• Installing combined heat and power (CHP) for biomass or pellet operations
• Retrofitting ethanol or biodiesel plants

*Only hydroelectric projects rated at 30 megawatts or less are eligible.

Energy Efficiency Improvements (EEI)

Loan funds may be used for:

• Replacing inefficient equipment or systems
• Retrofitting buildings to reduce energy usage
• Replacing a structure with a new building if energy savings are greater

Examples:

• HVAC upgrades
• Lighting retrofits
• Grain dryer replacements
• Insulation and building envelope improvements

Energy Efficient Equipment (EEE)

Only available to agricultural producers, this category supports:

• Purchase and installation of energy-efficient ag production or processing equipment
• Equipment must exceed standard building codes or federal/state energy efficiency standards

Location Eligibility

• Projects must generally be located in rural areas
• Agricultural producers may apply for projects in non-rural areas only if the system is:
• Used directly for their ag production
• Co-located with their operation

Loan Structures & Terms

• Maximum Loan Amount: $25 million
• Term: Up to 30 years (not to exceed the useful life of the asset)
• Matching Funds Requirement: At least 25% of eligible project costs must come from other sources

Give us a call so we can start your project today!