USDA REAP Loans
A USDA REAP loan from Ready Capital enables rural businesses to capitalize on energy-efficient upgrades without straining financial resources.
Fund Energy-Efficiency Projects with the Rural Energy for America Program
Implementing energy-efficient improvements or renewable energy systems is an excellent way to reduce rising energy costs and further business sustainability goals. However, saving energy and money long-term can require substantial capital today—something many small rural businesses don’t have.
Because many conventional lenders offer unfavorable loan terms or avoid funding for energy efficiency or renewable energy projects altogether, the United States Department of Agriculture (USDA) created a program to help agricultural producers and rural small businesses secure flexible financing. Through the Rural Energy for America Program (REAP), Ready Capital can help obtain an amortized loan with reasonable rates and extended lending periods.
USDA REAP Loan Details
- Loan Amount: Up to $25 million (REAP and B&I funding may be available for up to $50 million)
- Terms: 10 to 40 years
- Rates: Competitive Rates
- Territory: Nationwide
- Occupancy: For-profit owner-occupied and investor real estate, renewable energy projects such as biomass, solar, and anaerobic digestors.
Secure a Customized REAP Loan from a Top USDA Lender
Deciding to pursue REAP financing is easy if you’re looking for reasonable loan terms, high loan amounts, and interest rates in the single digits. However, choosing the right lender isn’t always as simple. Many banks and credit unions are unfamiliar with the nuances of USDA loan programs and don’t have the lending capacity to offer the financing needed.
At Ready Capital, every team member has extensive experience navigating USDA financing programs. Unlike other companies that aren’t confident in offering USDA REAP loans, our team can develop creative and innovative solutions to your funding challenges.
Book a Loan Consultation Today
Rural businesses or agricultural producers with plans to upgrade their facilities may be eligible for up to $25 million in funding. In 15 minutes or less, a Ready Capital expert can determine their loan qualifications and begin structuring a loan.
About Ready Capital
Why Choose Ready Capital for USDA Business Loans?
Ready Capital is a trusted partner for small business loans.
Here’s why clients think we’re different.
Publicly Traded
A non-bank, non-depository, listed on the New York Stock Exchange (NYSE:RC)
SBA Preferred Lender
The #4 SBA Preferred Lender in the United States
Responsive Lending
More flexible lending delivers better outcomes
Nationwide Coverage
Lends in all 50 states, delivering over $1.6B in capital
Dedicated Service
A reliable Ready Capital representative manages each transaction
Rapid Execution
Approval process focused on speed, dependability, and transparency
FAQs
What Type of Business Is Eligible for a REAP Loan?
The Rural Energy for America Program was designed to promote renewable energy production in rural America, but some borrowers can use funds in urban areas. Any agricultural producer can apply for a USDA REAP loan, regardless of location. Other applicants must qualify as a small rural business in a city or town with fewer than 50,000 residents or plan to use their funds for a project located in a rural area.
How Can USDA REAP Funds Be Used?
REAP funds may be used to purchase, install, or construct renewable energy systems or energy-efficient improvements. Eligible renewable energy projects include solar, wind, biomass, geothermal, hydrogen, hydropower, and ocean systems. REAP loans can also be used to replace or upgrade manufacturing equipment, HVAC systems, lighting, doors and windows, insulation, refrigeration units, and other inefficient equipment.
Can SDA REAP Financing Be Used for Any Industry?
Ready Capital serves most businesses across the U.S.—with limited restrictions. If they meet USDA REAP loan requirements, we can expedite the application and closing process.
Whether installing a solar energy system for a small medical office or replacing the lighting and HVAC systems in a rural industrial facility, Ready Capital can help choose the loan option with the smallest impact on cash flow.