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Rural Energy for America Program  (REAP) 
 

Click Here to view all and to obtain application information for your specific type of renewable energy project.

Description:

Section 9007 of the 2008 Farm Bill established a grant, loan, and loan guarantee program to assist eligible farmers, ranchers, and rural small businesses in purchasing renewable energy systems and for making energy efficiency improvements.

Eligible projects include those that derive energy from a wind, solar, biomass, or geothermal source, or hydrogen derived from biomass or water using wind, solar, or geothermal energy sources. Awards will be made on a competitive basis for the purchase of renewable energy systems and to make energy improvements

Energy Efficiency improvements could include replacing diesel irrigation motors, upgrading poultry houses, or retrofitting tobacco barns with new burners.  Installing more installation, new HVAC systems or more efficient windows for rural small businesses can also be eligible for grant funds.

Grant Purposes:

Grant funds must be used to finance and develop small and emerging private business enterprises in rural areas. The following 
is a list of some of the eligible purposes: 

  • Purchase and installation of equipment
  • Construction and improvements
  • Energy audits
  • Permit fees
  • Professional service fees
  • Feasibility Studies
  • Business plans
  • Retrofitting
What Can You Not Do With These Funds?

Grant funds cannot be used to:
  • Purchase land

  • Provide working capital
  • Research and Development
  • Residential improvements
  • Vehicles
  • Waste collections
Who Is Eligible?

These grants can be made to farmers, ranchers, and rural small businesses.  Farmers or ranchers must receive more than 50% of their annual income from their farming operation.  Rural Small businesses must be the SBA definition of a small business.  To see if you qualify as a small business, please go to the SBA web site at http://www.sba.gov/services/contractingopportunities/sizestandardstopics/summarywhatis/index.html.  

The following table is a summary of the SBA definition of a small business:

Industry Group

Size Standard

Manufacturing 500 employees
Wholesale Trade 100 employees
Agriculture $750,000
Retail Trade $6.5 million
General & Heavy Construction (except Dredging) $31 million
Dredging $18.5 million
Special Trade Contractors $13 million
Travel Agencies $3.5 million (commissions & other income)
Business and Personal Services Except: $6.5 million
  • Architectural, Engineering, Surveying, and Mapping Services
$4.5 million
  • Dry Cleaning and Carpet Cleaning Services
$4.5 million

Your business may have different standards, so it is suggested that you check the SBA site for your specific business type based on your NAICS code.  You can find your NAICS code at this site, http://www.naics.com/search.htm

Other Criteria:

  • The applicant must have a demonstrated financial need.
  • Applicants must be located in a rural area.

Loan and Grant Amounts:

Grants for Renewable Energy Systems have a maximum limit of $500,000 and a minimum of $2,500.  Grants for Energy Efficiency Improvements have a maximum of $250,000 and a minimum of $1,500.  The maximum loan is $10,000,000 or 50% of project costs, whichever is less.

Where Do You Apply?
 

Contact your Local Area Office:
 

Presque Isle Area Office: Aroostook & Washington Counties

Cheryl D. Pelletier Cheryl.Pelletier@me.usda.gov

735 Main Street Suite 1, Presque Isle, ME 04769

(207) 764-4157, ext 135

Bangor Area Office:  Hancock, Knox, Penobscot, Piscataquis, Somerset

& Waldo Counties

 John F. Sheehan John.Sheehan@me.usda.gov

1423 Broadway Suite 3, Bangor, ME 04401

(207) 990-3676, ext 130

 

Lewiston Area Office: Androscoggin, Franklin, Kennebec & Oxford Counties and Scarborough Area Office: Cumberland, Lincoln, Sagadahoc, & York Counties

Bobbi J. Arnold Bobbi.Arnold@me.usda.gov

254 Goddard Road, Lewiston, ME 04240

(207) 753-9400, ext 240

 

 

 
 

Program Director: Dean R. Churchill Dean.Churchill@me.usda.gov
 

967 Illinois Avenue, Suite 4

Bangor, ME 04401

(207) 990-9168

Energy Coordinator Beverly A. Stone Beverly.Stone@me.usda.gov

967 Illinois Avenue, Suite 4

Bangor, ME 04401

(207) 990-9168

 

 

To obtain application information for your specific type of project, please go here.

 

Grant Requests with a project cost of $200,000 or less Grant Requests with a project cost of over $200,000 Guaranteed Loan Requests with a project cost of $200,000 or less Guaranteed Loan Requests with project costs between $200,000 & $600,000 Guaranteed Loan Requests with project costs over $600,000