USDA

USDA Rural Energy for America Program

USDA Rural Energy for America Program (REAP)

The USDA Rural Energy for America Program (REAP) provides financial assistance to agricultural producers and rural small businesses to support renewable energy systems and energy efficiency improvements. This program aims to reduce energy costs, enhance energy independence, and promote economic development in rural areas.
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Additional Information

Funding Overview

  • Total Funding: $1.72B
  • Types of Funding:
    • Grants: Financial assistance for renewable energy systems and energy efficiency improvements.
    • Guaranteed Loans: Loan financing for renewable energy systems and energy efficiency improvements.

Program Goals

REAP is designed to:

Promote Renewable Energy: Support the development and implementation of renewable energy systems.
Enhance Energy Efficiency: Improve energy efficiency in agricultural production and rural small businesses.
Foster Economic Development: Encourage economic growth and job creation in rural areas through energy cost savings and sustainable practices.

Eligibility Criteria

• Eligible Applicants:
o Rural small businesses
o Agricultural producers
• Tribal Eligibility: Yes
• Eligible Areas: Rural areas as defined by USDA guidelines.

Eligible Uses

Renewable Energy Systems:

o Biomass (e.g., biodiesel, ethanol, anaerobic digesters, solid fuels)
o Geothermal (electric generation or direct use)
o Hydropower (below 30 MW)
o Hydrogen
o Wind generation (small and large)
o Solar generation (small and large)
o Ocean (tidal, current, thermal) generation

• Energy Efficiency Improvements:

o High-efficiency heating, ventilation, and air conditioning systems (HVAC)
o Insulation
o Lighting
o Cooling or refrigeration units
o Doors and windows
o Electric, solar, or gravity pumps for sprinkler pivots
o Switching from diesel to electric irrigation motors
o Replacement of energy-inefficient equipment

Key Considerations

Cost Share Requirement: Up to 50%
Period of Availability: Funds are available until September 30, 2031.
Environmental Review: Applicants must complete an environmental review before incurring project costs or commencing construction activities.

Community Impact

Energy Cost Savings: By funding renewable energy systems and energy efficiency improvements, REAP helps reduce energy costs for agricultural producers and rural small businesses.

Economic Development: Improved energy infrastructure and cost savings contribute to economic growth and job creation in rural areas.

Sustainability: The program supports sustainable practices that enhance energy independence and reduce greenhouse gas emissions.
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Our Financing Programs

The CBO Financial team specializes in helping project sponsors secure flexible, below-market financing with a focus on high-impact projects in low-income communities. Our financial experts are skilled at combining public and private funding sources so that projects that might have otherwise stalled can move forward quickly and cost-effectively.

We’ve financed over $1 billion in high-impact investments nationwide, including $150 million using New Markets Tax Credits awarded to a CBO subsidiary. Backed by powerful funding tools and expertise, you’ll be pushed through to the finish line.

New Markets Tax Credits

A federal subsidy program designed to revitalize distressed communities by providing forgivable gap financing for up to 25% of costs for high-impact projects.
New Markets Tax Credits

Capital Magnet Fund

Grants up to $15M to CDFIs and nonprofit housing organizations to finance affordable housing and related economic development activities.
Property Assessed Clean Energy Financing

Bond Guarantee Program

A program that provides CDFIs with access to long-term, low-cost capital by guaranteeing bonds issued by qualified CDFIs, providing fixed rate financing for up to 29 years at ~100 bps over Treasuries.
Federal Historic Tax Credits

Technical Assistance Awards

Grants up to $125K to startup and existing CDFIs to build capacity to serve low-income communities by funding activities such as staff training, technology purchases, and consulting services.
Community Development Financial Institutions

Financial Assistance Awards

Matching grants up to $2M awarded to CDFIs to enhance their ability to provide loans, investments, and financial services to underserved populations.
US Department of Agriculture

Small Dollar Loan Program

Up to $500K to provide a loan loss reserve to support making affordable consumer loans to low-income individuals for up to $2,500, helping them avoid predatory lending practices.
Redevelopment Assistance Capital Program

CDFI Certification

A designation for specialized financial institutions that provide financial products and services in low-income communities and to targeted populations that lack access to financing.
Puerto Rico Financing Programs

EPA Programs

Community Change Grant Program

A $10M to $40M grant program that supports community-led projects aimed at improving environmental and public health outcomes in underserved communities.
New Markets Tax Credits

Clean Communities Investment Accelerator

Provides community lenders with grants up to $11M to help accelerate investment in clean energy and sustainable infrastructure projects in low-income communities.
Property Assessed Clean Energy Financing

National Community Investment Fund

Loans and guarantees will be made directly to projects with this funding starting in early 2025.
Federal Historic Tax Credits

USDA Programs

Business & Industry

A program that provides loan guarantees up to $25M to rural businesses to improve, develop, or finance business, industry, and employment.
New Markets Tax Credits

Community Facilities

A program that offers direct loans, loan guarantees, and grants to develop essential community facilities in rural areas up to $5M.
Property Assessed Clean Energy Financing

Rural Energy for America Program

A program that provides grants up to $1M and loan guarantees to agricultural producers and rural small businesses for renewable energy systems and energy efficiency improvements.
Federal Historic Tax Credits

Other Funding Programs

Federal Historic Tax Credits

The federal Historic Tax Credit is available for the rehabilitation of historic, income-producing buildings determined by the Secretary of the Interior, through the National Park Service, to be “certified historic structures” for approximately 20% of project costs.
New Markets Tax Credits

You see challenges. We see possibilities.
Your community sees change.

Established in 1999, CBO Financial is a financial consulting firm that specializes in helping businesses secure funding for development projects in the nation’s most distressed communities. Our experts understand how to present economic, environmental, and societal benefits to public and private organizations so your project receives the funding it needs to move forward quickly and reasonably. A CBO Financial subsidiary, Community Development Funding, LLC, has received six awards under the federal New Markets Tax Credit program totaling $150M. In addition the team has taken a leadership role in securing 18 awards for clients totaling over $400M.
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The funding is out there

CBO can be your access point for a variety of federal financing and subsidy programs, including those offered by the CDFI Fund, EPA, USDA and other agencies.
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 a Significant Impact

CBO is on a mission to help elevate the lives of people living in distressed communities by providing flexible, below-market gap financing to high-impact projects that cannot otherwise move forward. Does your project qualify for financing?
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Million-dollar stories

The CBO team has funded over $1 billion in projects for local and national nonprofits, for-profit developers, and municipal agencies. Our team can help you find the low-cost financing or new market tax credits needed for your projects.
Projects

Does Your Project Qualify for Low-Cost Financing or New Markets Tax Credits?

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