USDA REAP Status FY2026: Grants Paused, Guaranteed-Loan Applications Open

The Rural Energy for America Program (REAP) has two very different answers right now. USDA is pausing the FY2026 grant track while it revises the program regulations. The agency is not accepting new Renewable Energy Systems (RES) or Energy Efficiency Improvement (EEI) grant applications, and it is not making further grant awards for applications that do not have a fully executed Financial Assistance Agreement. There is no confirmed FY2026 grant deadline, grant application window, or grant amount.

The guaranteed-loan track remains open. USDA’s FY26 REAP FAQ says that FY2026 guaranteed-loan applications are currently being accepted under the OneRD guarantee rules. That means an agricultural producer or eligible rural small business may still discuss a renewable-energy or energy-efficiency project with USDA Rural Development and a lender, even though the grant application route is closed. Do not treat a loan inquiry as a grant application, and do not assume that a future grant will be available to complete the financing plan.

Current FY2026 status

USDA published its stakeholder status announcement on April 6, 2026. The announcement says that Rural Business Cooperative Service intends to update 7 CFR 4280, subpart B, and that a new Notice of Funding Opportunity will be published under the revised regulations once they take effect. It also says applicants who previously submitted an application and do not have a fully executed Financial Assistance Agreement will have an opportunity to reapply under the future requirements. The FY26 REAP FAQ gives the same practical answer: no new grant applications are currently accepted, while guaranteed loans continue.

What is paused and what is still available

The pause applies to grant awards and to new RES and EEI grant applications. It is not accurate to describe REAP as fully discontinued, and it is not accurate to say that every REAP financing option is closed. USDA says the regulations are being updated and that the grant program will have a new funding notice after the revised rules become effective.

The pause also reaches applications already filed without a fully executed Financial Assistance Agreement. USDA says it will not make further awards on those applications until the new regulations are completed. Once the updated regulation is published and the agency announces that new applications are accepted, an affected applicant may file a new application that complies with the forthcoming requirements. A selection notice, a partially processed application, an environmental review in progress, or an informal communication from an installer is not the same as a fully executed agreement.

Guaranteed loans are different. USDA’s FAQ says the REAP guaranteed-loan program follows the OneRD guarantee regulation and that FY2026 applications are currently accepted. The FAQ also notes that certain solar photovoltaic and wind projects may qualify for a REAP guarantee, subject to USDA’s additional guidance. A lender still has to underwrite the borrower and project, and USDA must review the guarantee request under the applicable instructions. Loan availability therefore does not mean automatic approval or a promise of a particular interest rate, guarantee percentage, or closing date.

Amount and cost share

There is no confirmed FY2026 REAP grant amount to use in a budget. The new regulations and the future funding notice may change the grant ceilings, federal share, scoring, documentation, or eligible technologies. Older pages and prior notices may show grant limits or cost-share percentages from an earlier funding structure. Those figures should not be presented as an FY2026 grant offer while USDA is revising the rules.

The currently available loan guidance is more useful for a project that needs financing now. REAP guaranteed loans can cover up to 75 percent of eligible project costs, and the borrower must generally demonstrate a financial contribution of at least 25 percent of total eligible project costs. The applicable OneRD rules set a $5,000 minimum guaranteed-loan amount and a $25 million maximum total REAP guaranteed-loan exposure per borrower, including the guaranteed and unguaranteed portions and relevant existing REAP debt. The lender and USDA will still determine the eligible costs, repayment structure, collateral, fees, and final loan terms.

The loan guarantee is not a grant. The lender provides the loan, the borrower repays it, and USDA’s guarantee reduces the lender’s risk under the program rules. Interest rates are negotiated between the lender and borrower. A project should therefore be able to support repayment without relying on a future grant that has not been announced.

Who may qualify

The core applicant groups remain agricultural producers and rural small businesses, but the grant pause means that grant eligibility cannot be finally determined until the revised rules and new funding notice are published.

For an agricultural producer, USDA’s program guidance generally requires at least 50 percent of gross income to come from agricultural operations. The business should be able to document that test with tax returns, farm records, or other financial information requested by USDA or the lender. This is an income test, not simply a statement that the applicant owns farmland or sells an agricultural product.

A rural small business must meet the applicable Small Business Administration size standard and be located in an eligible rural area. USDA’s current REAP guidance describes eligible project locations as rural areas with populations of 50,000 residents or less, subject to the program’s location rules and eligibility tools. Confirm the project address with USDA before paying for a full application package. A business can be small enough for SBA purposes and still fail the rural-location test.

The project should involve a renewable energy system or an energy-efficiency improvement. Agricultural producers may also use the program for new energy-efficient equipment and systems used in agricultural production or processing. Technology must meet the program’s technical requirements and be commercially available. Energy-efficiency projects generally require an energy audit or energy assessment appropriate to the project size. Solar photovoltaic and wind projects may be eligible for a guaranteed loan, but the FAQ directs applicants to USDA’s additional stewardship guidance rather than treating every proposed system as automatically eligible.

Applicants for a guaranteed loan must also satisfy OneRD borrower and underwriting requirements. USDA’s REAP guidance identifies delinquent federal taxes, federal debt, judgments, or debarment as disqualifying conditions. Individual borrowers must meet the applicable citizenship or lawful-permanent-residence rule, and private entities must demonstrate that loan funds will remain in the United States. A lender will review credit capacity, capital, collateral, repayment ability, and the project’s financial assumptions.

How to proceed while grants are paused

There is no grant form to submit today. Do not pay an intermediary to file an FY2026 RES or EEI grant application while USDA says those applications are not being accepted. Instead, use the pause to preserve project evidence and to decide whether the project can proceed with a loan, tax incentive, utility program, state support, or the applicant’s own capital.

For a guaranteed-loan project, use this sequence:

1. Contact the USDA Rural Development energy coordinator for the state where the project will be located. Ask the coordinator to confirm the current REAP guaranteed-loan route, the applicable OneRD instructions, and any program-specific unnumbered letters.
2. Find a lender willing to finance the project and work through the lender’s preliminary credit review. USDA’s guarantee supports the lender; it does not replace the lender’s underwriting.
3. Confirm applicant and site eligibility before ordering expensive studies. Gather the business structure, ownership information, agricultural-income evidence or SBA size information, project address, and documentation showing that the applicant is current on federal obligations.
4. Build a realistic project budget. Separate eligible and ineligible costs, identify the source of the required borrower contribution, and obtain vendor quotes that explain equipment, installation, commissioning, warranties, and expected operating savings.
5. Prepare the technical file. An energy-efficiency project should have the required energy audit or assessment. A renewable project should document system design, production estimates, resource assumptions, equipment specifications, and commercial availability. Include permits, interconnection information, site control, and environmental details when relevant.
6. Let USDA and the lender complete the required environmental and credit reviews before construction or other commitments that could make costs ineligible. Ask in writing which obligations may be incurred before approval and which must wait.
7. Submit the guaranteed-loan package through the current lender and USDA process. Keep copies of every form, quote, calculation, certification, and communication, and do not describe the submission as a grant application.

For a future grant application, prepare the same underlying project file but wait for USDA to announce that applications are accepted and to publish the revised rules and funding notice. The future notice may require a new form, a different cost-share calculation, different technical documentation, or a new scoring process. A prior application should be treated as source material, not as a live application that will automatically carry forward.

Materials worth preparing

A useful preparation file can include the last several years of business or farm financial records, evidence supporting the agricultural-income or small-business test, a legal description and address for the project site, utility bills and production records, an energy audit or assessment when appropriate, equipment specifications, a project schedule, vendor quotes, permits, interconnection correspondence, environmental information, and a sources-and-uses budget. For a loan request, include projected cash flow, debt schedules, repayment assumptions, collateral information, and evidence of the borrower’s contribution.

Do not finalize a grant-specific checklist from an old notice. USDA may revise the requirements before the grant window reopens. Keep the raw data behind each calculation so that an audit, engineering report, or quote can be refreshed without rebuilding the entire project record. This is especially important for energy savings, production estimates, equipment pricing, and interconnection timing.

How to monitor the reopening

Use USDA’s official REAP page as the primary program link. Check the page for an announcement that grant applications are accepted, then read the linked Federal Register notice before relying on any deadline or funding amount. The USDA FAQ and the stakeholder announcement explain the present pause. USDA’s state office and energy coordinator can also tell prospective applicants when local intake instructions change.

Treat a date quoted by an installer, consultant, or older search result as unconfirmed until it appears in a new USDA funding notice. The same caution applies to grant caps, federal share percentages, eligible technologies, and claims that an old application will be honored. There is currently no confirmed grant deadline to place on a calendar.

Frequently asked questions

Is REAP cancelled?

No. USDA says it is revising the regulations and will issue a new funding notice after the revised regulations become effective. The grant track is paused, not replaced by a confirmed new deadline.

Can I submit a new FY2026 grant application?

No. USDA says RES and EEI grant applications are not currently accepted. Wait for an official announcement that a new application window is open.

Can I apply for a guaranteed loan?

Yes, USDA’s FY26 FAQ says FY2026 REAP guaranteed-loan applications are currently being accepted. Start with the state Rural Development energy coordinator and a lender, and follow the current OneRD requirements.

Will a previous grant application be awarded later?

Not if it lacks a fully executed Financial Assistance Agreement. USDA says it will not make further awards on the affected applications until the revised regulations are completed, after which an applicant may reapply under the forthcoming requirements.

What grant amount should I put in my financial model?

None as a confirmed FY2026 amount. USDA has not announced the grant amount or deadline for the paused cycle. Model the project without a grant unless and until a new official notice provides the applicable terms.

Should I keep working on the project?

You may continue reasonable planning, collect records, compare vendors, and ask a lender about a guaranteed loan. Do not start construction or incur costs on the assumption that a future grant will reimburse them. Confirm timing and eligible-cost rules with USDA and the lender before signing contracts.

Official sources

• USDA Rural Energy For America Program page
• USDA FY26 REAP FAQ
• USDA stakeholder announcement on REAP status
• USDA REAP guaranteed-loan guidance

This page describes the FY2026 status reflected in USDA’s current guidance: no confirmed grant deadline or grant amount, no current RES/EEI grant intake, no further grant awards while the regulations are revised, and an open guaranteed-loan application route. Recheck the official USDA page before committing money or relying on a future grant.