Rural Energy for America Program (REAP)- Renewable Energy System and Energy Efficiency Improvement Guaranteed Loan and Grant Program – Financing

The maximum amount of a REAP Guaranteed Loan is $25 million per loan request. The minimum loan amount is $5,000. Up to 75 percent of total eligible project costs can be covered through the REAP Guaranteed Loan Program.

The Program provides guarantees to commercial lenders who make loans to rural small businesses or agricultural producers for energy projects. The rates and terms of these loans are negotiated between the lenders and the borrowers.

The following guarantee limits apply:

• 85 percent for loans of $600,000 or less
• 80 percent for loans greater than $600,000 up to $5 million
• 70 percent for loans greater than $5 million up to $10 million
• 60 percent for loans greater than $10 million up to $25 million

The following grant amounts apply:

• The minimum Renewable Energy System Grant request is $2,500 up to a maximum of 25 percent of eligible project costs or $500,000, whichever is less.
• The minimum Energy Efficiency Improvement Grant request is $1,500 up to a maximum of 25 percent of eligible project costs or $250,000, whichever is less.

The following amounts apply to combination guaranteed loan and grant limits apply:

• The combined request cannot exceed 75 percent of total eligible project cost
• The above guarantee limits apply
• The maximum  REAP Guaranteed Loan is $25 million per loan request
• The maximum Renewable Energy System Grant request is 25 percent of eligible project costs or $500,000, whichever is less
• The maximum Energy Efficiency Improvement Grant request is 25 percent of eligible project costs or $250,000, whichever is less $250,000
• The minimum combined funding request allowed is $5,000, with the grant portion of the funding request being at least $1,500