Financing

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Consumer Financing provided by Service Finance Corporation

Service Finance Company, LLC is a nationally licensed sales finance company and an approved FHA Title I Lender. They are a primary lender providing installment loan solutions for qualified borrowers with favorable consumer interest rates and extended repayment terms. Their program strives to produce a low monthly payment that may offset the energy savings customers enjoy when purchasing many energy savings products.

Rural Energy for America Program

The REAP program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses to purchase or install renewable energy systems or make energy efficiency improvements.

This program helps increase American energy independence by increasing the private sector supply of renewable energy and decreasing the demand for energy through energy efficiency improvements. Over time, these investments can also help lower the cost of energy costs for small businesses and agricultural producers.

Almost all agricultural applications qualify for USDA financing including REAP grants for value added agriculture.

Rural Energy for America Program FAQs

Information provided by the USDA

What is an eligible area?
  • Businesses must be in an area other than a city or town
    with a population of greater than 50,000 inhabitants and
    the urbanized area of that city or town. Check eligible
    business addresses.
  • Agricultural producers may be in rural or non-rural areas.
How may the funds be used?

Funds may be used for the purchase, installation and
construction of renewable energy systems, such as:

  • Biomass (for example: biodiesel and ethanol, anaerobic
    digesters, and solid fuels)
  • Geothermal for electric generation or direct use
  • Hydropower below 30 megawatts
  • Hydrogen
  • Small and large wind generation
  • Small and large solar generation
  • Ocean (tidal, current, thermal) generation

Funds may also be used for the purchase, installation
and construction of energy efficiency improvements,
such as:

  • High efficiency heating, ventilation and air
    conditioning systems (HVAC)
  • Insulation
  • Lighting
  • Cooling or refrigeration units.
  • Doors and windows.
  • Electric, solar or gravity pumps for sprinkler pivots.
  • Switching from a diesel to electric irrigation motor.
  • Replacement of energy-inefficient equipment.
What funding is available?
  • Loan guarantees on loans up to 75% of total eligible
    project costs.
  • Grants for up to 25% of total eligible project costs.
  • Combined grant and loan guarantee funding up to 75%
    of total eligible project costs.
What are the loan guarantee terms?
  • $5,000 minimum loan amount.
  • $25 million maximum loan amount.
  • Up to 85% loan guarantee.
  • Rates and terms negotiated with the lender and subject
    to USDA approval.
  • Maximum term of 30 years for real estate.
  • Maximum term of 15 years, or useful life, for machinery
    and equipment.
  • Maximum term of 7 years for capital loans.
  • Maximum term of 30 years for combined real estate
    and equipment loans.
What are the grant terms?

Renewable Energy System Grants:

  • $2,500 minimum
  • $500,000 maximum

Energy Efficiency Grants:

  • $1,500 minimum
  • $250,000 maximum
Are there additional requirements?
  • Applicants must provide at least 75% of the project cost
    if applying for a grant only.
  • Applicants must provide at least 25% of the project cost
    if applying for loan, or loan and grant combination.
  • Projects greater than $200,000 require a technical report.
  • Energy efficiency projects require an energy audit or
    assessment.
What governs this program?
  • Basic Program – 7 CFR 4280, Subpart B
  • This program is authorized by Title IX of the Agricultural Act of 2014, (2014 Farm Bill)

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