MAMTC’s REAP Strategy for Kansas Manufacturers

By Gary Hogsett on May 11, 2017

You’ve undoubtedly heard about Win-Win scenarios, right? You know how they go – you win, we win, everyone wins. But when is the last time you were able to actually participate in a Win-Win activity? Well guess what? Now’s your opportunity to be one of the winners!
Well, maybe. If you work for a small company and in a small town, read on.
REAP stands for the Rural Energy for America Program.  Its purpose is to encourage small companies to become more energy efficient by updating older, inefficient facilities and equipment.
What might this mean for you?  Well, that depends.  If you’ve got aging energy-consuming equipment in your facility, which you’re thinking of upgrading, MAMTC wants to talk to you about your options. This is the starting point of winning. If you’re eligible, based on the small company and rural location aspects, MAMTC’s REAP funds can help you implement your solution.

How much money is possible?

The REAP program provides both grants and loan guarantees.  The grants will pay for 25% of the project cost.  The loans can be used to fund up to 75% of the project cost.

What projects can REAP funds be used for?

Projects fall into one of two general categories, (1) Efficiency projects, and (2) Renewable energy projects.
Eligible efficiency projects can include nearly anything that reduces energy consumption and results in cost savings. Some examples include:
  • New lighting
  • New boiler
  • New air compressor
  • New controls
  • New chiller
  • New water heater
  • New rooftop HVAC units
  • New furnaces
  • New motors
  • New fans
  • New windows
  • Wall insulation
  • Pipe insulation

Eligible renewable energy projects include the purchase and installation of renewable energy systems such as wind, solar, geothermal, and biomass.

The program is managed by the USDA, and all projects must be located in a rural area (typically defined as a city of less than 50,000 in population), and must be owned by the applicant.  For obvious reasons, the project must be technically feasible.

How do if I know if I qualify as a small business?

If you have less than 500 employees worldwide, you probably qualify.  If you have more than 1,000 employees, it’s likely that you DON’T qualify.  If you fall somewhere in-between, call me and let’s check.
Are there dollar limits?

  • Energy efficiency grants may range from $1,500 to $250,000
  • Renewable energy grants may range from $2,500 to $500,000
  • Loan Guarantees can help private lenders provide financing of $5,000 to $25,000,000
  • Some projects may qualify for a Loan Guarantee/Grant combination
If you have any interest at all in this program, please call our Senior Energy Engineer, Gary Hogsett, at 620-779-0233.  He has assisted a lot of Kansas manufacturers in participating in this program, and he would love to discuss it with you.