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Combined Heat and Power Partnership

REAP - Guaranteed Loan and Grant Program

dCHPP Glossary (PDF) (2 pp, 53K)

Date Last Updated5/14/2014
Incentive TypeLoan; Grant
Incentive Administrator/Contact OfficeUSDA - Rural Development
Incentive Initiation Date5/13/2002
Incentive Size and Funding SourceThe Renewable Energy for America Program's (REAP) Renewable Energy System and Energy Efficiency Improvement Guaranteed Loan and Grant Program provides financial assistance to purchase and install renewable energy systems and energy efficient improvements in rural areas. $12.38 million in grant funding and $578 million in guaranteed loans are available, as well as funding for grant/loan combination requests.

Grant funding will not exceed 25% of total eligible project costs and the maximum amount available to one individual or entity per fiscal year is $750,000. The minimum and maximum grant amounts are as follows:
  • Renewable energy projects: $2,500 - $500,000.
  • Energy efficiency projects: $1,500 - $250,000.
The minimum loan is $5,000 and the maximum guaranteed loan is $25 million. Up to 75% of project costs can be covered through the loan guarantee program. Interest rates are negotiated between the lender and the borrower. The program provides guarantees to commercial lenders who make loans to rural small businesses or agricultural producers for energy projects. The following guarantee limits apply:
  • 85% for loans of $600,000 or less.
  • 80% for loans greater than $600,000 up to $5 million.
  • 70% for loans greater than $5 million up to $10 million.
  • 60% for loans greater than $10 million up to $25 million.
Eligible RecipientAgricultural producer or rural small business.
Eligible FuelDoes Not Specify
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required (%)Does Not Specify
Application Form(s) Grant Application Materials.
Other Incentive DetailsGrant applications and combination grant and guaranteed loan applications are due July 7, 2014. Guaranteed loan only applications will be accepted on a continuous basis up to July 31, 2014.

REAP is no longer offering feasibility study grants and renewable energy development assistance or energy audit grants in 2014.

Please contact the USDA Rural Development Energy Coordinator in your state for further information.
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