ActiveOpenFederal

Rural Energy for America Program Guaranteed Loans.

REAP guaranteed loans support qualifying agricultural producers and rural small businesses financing renewable energy systems or energy-efficiency improvements through participating lenders.

Offered byUSDA Rural Developmentverified 2026-07-10

Overview

What it does.

FY2026 REAP guaranteed-loan applications are currently accepted under OneRD guarantee rules. USDA is not accepting REAP grant applications or making further grant awards until updated regulations and a new funding notice are in effect.

Best for: Rural businesses or farms planning documented solar, renewable-energy, or energy-efficiency investments.

Eligibility

Who and what may qualify.

Eligible applicants

  • Agricultural producers meeting the agricultural-income test
  • Eligible rural small businesses, including specified cooperatives and independent rural-serving electric utilities

Applicants excluded by the source

  • Small businesses at ineligible urban project locations
  • Projects lacking technical merit or required energy documentation

Eligible uses

  • Renewable energy systems
  • Energy-efficiency improvements
  • Eligible energy-efficient agricultural production and processing equipment

Uses excluded by the source

  • Projects begun before required environmental review or agency clearance
  • Grant-only requests while USDA is not accepting REAP grant applications
  • Technologies or costs excluded by OneRD guarantee rules and current USDA guidance

Application

How to start.

  1. Confirm the project address and applicant eligibility with the Illinois State Energy Coordinator
  2. Obtain the required energy assessment or audit and technical documentation
  3. Identify a participating lender; only lenders submit OneRD guarantee applications to USDA
  4. Work with the lender and Illinois USDA Rural Development office before construction begins

Timing: Guaranteed-loan applications are accepted year-round and FY2026 applications are currently being accepted. REAP grant applications are not being accepted.

Planning notes

Limits to account for.

  • This open record applies only to guaranteed loans; USDA is not accepting REAP grant applications
  • Exact rural address eligibility must be checked
  • Energy projects require technical merit and an audit or assessment
  • Environmental review must occur before award or construction

May be combined with tax credits, utility incentives, or other financing if OneRD, duplication, and total-project rules are satisfied.

Evidence

Official sources.