Applying for REAP under the new rule
Because projects are now funded after they are finished, preparation starts before you build. These are the steps, with the rule section behind each one.
Last updated . Reflects USDA's October 1, 2026 final rule.
- 1
Register in SAM.gov
Register the business in SAM.gov and get a Unique Entity ID. Choose the "All Awards" option. Rural small businesses also need an active SBA profile that shows them as a small business. Keep the registration current the whole time. (7 CFR §4280.120(a)(1)-(2))
- 2
Plan the project the way USDA requires
Get an Energy Assessment (efficiency projects of $80,000 or less) or an Energy Audit (larger efficiency projects). For renewable systems, get a Resource Assessment or a Feasibility Study. (7 CFR §4280.131(b)(3)) Choose an installer licensed in the state where the project is installed who has installed at least three similar systems. Select your installer and other key service providers following federal procurement rules (2 CFR 200.318 to 200.327). (7 CFR §4280.122(a)(9)-(10)) Put the system on a meter dedicated to the business. (7 CFR §4280.122(a)(16))
- 3
Build it and keep records
Keep every invoice and proof of payment, and make sure the business owns the system. (7 CFR §4280.131(b)(18)) For projects of $200,000 or more, a professional engineer licensed in the state where the project is located must sign a completion certificate. (7 CFR §4280.122(a)(11))
- 4
Collect 12 months of results
Renewable systems need 12 consecutive months of energy use from before installation and 12 months of production after. Efficiency projects need before-and-after consumption, plus the dollar value of energy saved. (7 CFR §4280.131(b)(17)) You can apply 12 to 24 months after the project ends. (7 CFR §4280.122(a)(6))
- 5
Prepare financials and documents
You'll need a Certificate of Good Standing, bylaws or operating agreement, owner details, and business-level financial statements for the latest fiscal year. Projects of $200,000 or more also need two years of pro forma statements. (7 CFR §4280.131(a)) Your latest year must show positive cash flow and a current ratio of at least 1:1. (7 CFR §4280.120(a)(7))
- 6
Submit on time
USDA publishes application dates on its website. Applications are due by 5:00 p.m. Eastern on the deadline, and everything must be submitted in a single application. Requests of $20,000 or less can compete for reserved funds. (7 CFR §4280.133)
Common reasons applications get rejected: missing documents (incomplete applications are rejected), more than 25% unallowable costs, or any conflict of interest. (7 CFR §4280.140(a); §4280.122(b)(21)-(22))
Want an expert to handle the paperwork?
We prepare REAP applications for farms and rural businesses. Start with the free eligibility check, or book a call.