USDA Rural Energy for America Program (REAP)

Who qualifies

• Agricultural producers: individuals, legal entities, or Indian tribes that derive at least 50% of gross income from agricultural operations (production, processing, or marketing of agricultural products)
• Rural small businesses: for-profit entities located in a rural area (USDA definition: outside urbanized areas of 50,000+) with ≤$1M in gross revenues OR located in a rural area and meeting SBA size standards for their NAICS code — whichever is larger
• The project must be located in a rural area for rural small businesses (agricultural producers may be located anywhere)
• Must have received a completed energy audit or assessment (for energy efficiency projects): an assessment by a qualified energy auditor performed within 24 months prior to application
• Renewable energy systems: must be commercially available technology with an operating history demonstrating commercial viability
• Energy efficiency improvements: must reduce energy consumption by at least 25% of prior 12-month usage
• Must have legal authority to operate in the location of the project
• Active SAM.gov UEI registration required before submission
• Applicant must provide a technical report signed by a qualified engineer or energy professional demonstrating technical merit and energy production or savings
• Must demonstrate financial need and ability to complete the project (operating financials typically for prior 3 years)

Hard requirements

• Rural location required

What it covers

How to apply

1. 1

   Obtain energy audit or renewable energy feasibility report

   For energy efficiency projects: hire a qualified energy auditor (licensed engineer or auditor certified by BPI, ASHRAE, or equivalent) to conduct and document an energy audit within the past 24 months — this is a hard eligibility requirement, not optional documentation. For renewable energy: obtain a technical report from a licensed engineer certifying system design, expected energy output (kWh/year), and project feasibility. This is the most time-consuming prerequisite.

   ~8 hrs

2. 2

   Register in SAM.gov and get active UEI

   Create or renew your SAM.gov registration at sam.gov. For new registrations, allow 7–10 business days (sometimes up to 4 weeks). You cannot submit a Grants.gov application without an active SAM.gov registration with a UEI. Check your expiration date — many applicants are rejected for expired SAM registrations.

   ~3 hrs

3. 3

   Contact local USDA Rural Development office

   Connect with your state's USDA Rural Development office before applying. Staff can confirm rural eligibility of your location, clarify the current NOFO requirements, and flag common errors. Find your office at rd.usda.gov/contact-us/state-offices. REAP applications are scored at the state level — knowing your state office's priorities helps.

   ~2 hrs

4. 4

   Prepare application package

   Download the NOFO from grants.gov or rd.usda.gov. Assemble: SF-424, SF-424C (budget), technical report (signed engineer), financial statements (3 years), proof of rural location, evidence of 50%+ farm income (for agricultural producers), cost-share documentation, and project narrative. The technical report is the most scrutinized document — it must include projected annual energy production or savings, system specifications, and vendor quotes.

   ~30 hrs

5. 5

   Submit via Grants.gov before deadline

   Submit electronically via grants.gov. Applications with missing technical reports, expired SAM registrations, or undocumented cost-share are rejected as incomplete before scoring. After submission, your state RD office reviews for completeness, then scores. Funding decisions typically announced 3–6 months after deadline.

   ~4 hrs

Industry & certifications

NAICS codes: 111110, 111120, 111130, 112111, 112112, 112210, 221114, 221115, 221116, 221117, 221118, 311, 312, 313, 314

Deadline & timing

Pre-IRA: one annual cycle, spring deadline. Post-IRA: USDA has run multiple funding windows per fiscal year. FY 2024 had at minimum a March and September window. Check grants.gov (CFDA 10.868) and rd.usda.gov for current open opportunities. Quarter 1 (October–December) often sees the NOFO published; applications due 60–90 days after. IRA-funded rounds may have separate NOFOs from base Farm Bill funding.

Programs that stack well

• Research & Development Tax Credit (Section 41)
• USDA Value-Added Producer Grant (VAPG)
• USDA Business & Industry (B&I) Loan Guarantee
• Small Business Administration 504 Loan
• State Rural Energy Programs

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