What Happens After You Submit a USDA REAP Grant Application?

Applying for a USDA Rural Energy for America Program (REAP) grant is a big step toward funding renewable energy or energy efficiency projects for your farm or rural small business. It is important to understand different milestones after you submit the application. Under the rule USDA published on October 1, 2026, every application is evaluated for completeness, eligibility, risk, and merit (7 CFR §4280.140). Your project is also already finished when you apply. It must have been completed 12 to 24 months before the application date (7 CFR §4280.122(a)(1)). In the first application window after the new rule, projects completed up to 36 months earlier can also apply (7 CFR §4280.122(a)(6)).

At CGF, we guide our clients through every stage of the process, so they know exactly what to expect after an application goes in.

1. Submission by the Deadline

USDA publishes the application dates on its website. Applications are due by 5:00 p.m. Eastern time on the published deadline. Late applications are not considered (7 CFR §4280.133(a)). Everything must be sent as one application, and USDA will not consider attachments beyond the required items (7 CFR §4280.133(b)).

2. Initial Screening for Completeness

Before scoring begins, USDA staff perform a completeness check. They review your application to make sure it includes everything listed in the application requirements (7 CFR §4280.131) (7 CFR §4280.140(a)).

• If complete: your application advances.
• If something is missing: USDA rejects the application and notifies you. It is not processed further (7 CFR §4280.133(b)) (7 CFR §4280.140(a)) (7 CFR §4280.152).

This is where small mistakes can end an application, which is why accuracy and organization matter from the start.

3. Eligibility Review

Once your application passes the completeness check, USDA reviews it against the eligibility rules for the applicant and the project (7 CFR §4280.140(b)). USDA reviewers check:

• That your business and your project meet every eligibility requirement (7 CFR §4280.120) (7 CFR §4280.122)
• That your technical report shows the project is technically sound (7 CFR §4280.122(a)(8))
• Whether you are excluded from federal funding, using the government’s records (7 CFR §4280.140(b))
• Environmental review documentation (7 CFR §4280.122(a)(12))

Applications that fail any eligibility requirement stop here, and USDA notifies the applicant (7 CFR §4280.140(b)).

4. Risk Review

Eligible applications then go through a risk review (7 CFR §4280.140(c)). At this point:

• USDA reviews your financial statements. If your current assets do not at least equal your current liabilities (a 1:1 ratio), the application cannot be funded (7 CFR §4280.140(c)(1)).
• USDA looks at federal awards you, your affiliates, or your owners received in the past five years. More than two awards with performance problems means the application is too high a risk to fund (7 CFR §4280.140(c)(2)).
• USDA also checks the principals of the business for financial risk or exclusion (7 CFR §4280.140(c)(3)).

Passing these reviews does not guarantee grant funding (7 CFR §4280.150).

5. Scoring and Competition

USDA employees score each remaining application. The total is 90 points, plus up to 10 priority points that USDA posts on the program website (7 CFR §4280.140(d)-(e)). Points are awarded for:

• Impact: at least three employees besides the owners, and critical community services (up to 10 points) (7 CFR §4280.140(d)(1))
• Energy saved or produced per grant dollar requested (up to 25 points) (7 CFR §4280.140(d)(2))
• Percent of energy saved or replaced (up to 20 points) (7 CFR §4280.140(d)(3))
• Environmental benefits (up to 5 points) (7 CFR §4280.140(d)(4))
• Prior REAP awards (up to 15 points, with the most for first-time applicants) (7 CFR §4280.140(d)(5))
• Simple payback (up to 15 points) (7 CFR §4280.140(d)(6))

Because REAP is competitive, applications are ranked solely on points (7 CFR §4280.150). Want a rough idea of your score? Try our score estimator.

6. Notification of Award or Rejection

USDA selects applications in rank order. Requests of $20,000 or less compete first for reserved funds (7 CFR §4280.150(a)). For all other requests, USDA first funds the top-scoring application from each state, or the top two if more than $100 million is available. Then it funds the rest in national rank order. No application below 40 points is funded (7 CFR §4280.150(b)). If you are selected, you’ll receive a Letter of Conditions. It lists the conditions you must meet and includes a copy of the award terms (7 CFR §4280.151(a)).

• If not funded, USDA notifies you as soon as practicable, and the application is not processed further (7 CFR §4280.152). One exception: a request of $20,000 or less that is not funded from the reserve also competes with all other applications, unless you withdraw it (7 CFR §4280.133(a)(1)).
• You can submit a specific project only once per federal fiscal year (7 CFR §4280.133(c)). If you apply again in a later year, the project must still have been completed 12 to 24 months before that application date (7 CFR §4280.122(a)(6)).

7. Grant Agreement and Paperwork

If selected, you have 60 calendar days to meet the conditions in the Letter of Conditions, unless the letter gives a different time frame. If you miss it, USDA stops processing the application (7 CFR §4280.151(b)). Once you meet the conditions, USDA approves the award by signing Form RD 4280-2, the Financial Assistance Agreement. It sets out all the terms of the award (7 CFR §4280.153).

8. Final Documentation and Payment

Your project is already built and paid for before you apply. If you receive an award, you must provide copies of all invoices and payments, and they must show that your business owns the system (7 CFR §4280.131(b)(18)). Costs must be allowable and incurred during the approved Project Period (7 CFR §4280.153). Projects costing $200,000 or more, and some larger or more complex projects, need a completion certificate from a professional engineer licensed in the state where the project is located (7 CFR §4280.122(a)(11)). You must keep owning the system, and owning or controlling the site, until the final payment is made (7 CFR §4280.120(a)(6)). The rule does not set a payment timeline, so follow your Letter of Conditions and award agreement.

9. Post-Completion Reporting

A final financial report (Form SF-425) and a final performance report are due 120 calendar days after award approval (7 CFR §4280.160(a)-(b)). Equipment reporting follows the terms in your award agreement (7 CFR §4280.160(c)). USDA monitors awards and can suspend or end an award for missing reports, documentation, or other failures to follow the award terms (7 CFR §4280.161).

How CGF Simplifies the Process

At CGF, we don’t just submit your application and walk away, we stay with you through the entire USDA timeline. Our support includes:

• Pre-screening your project for eligibility
• Preparing complete, compliant applications
• Responding quickly to USDA requests for clarification
• Advising on scoring strategies
• Helping with reimbursement paperwork and reporting

Submitting a REAP application is just the beginning. The process involves multiple reviews, scoring, and follow-ups before funds can be awarded (7 CFR §4280.140) (7 CFR §4280.151). With expert guidance, you can avoid delays, improve your chances of success, and keep your project moving forward. Not sure your project qualifies yet? Start with our eligibility tool.