-REAP Grants Explained: How They Can Help Laundromat Owners-

Utility costs are one of the largest and most unpredictable expenses in a laundromat. Dryers, water heaters, and HVAC systems consume significant amounts of energy every day, and aging equipment only makes those costs worse. For laundromat owners located in eligible rural areas, the USDA Rural Energy for America Program (REAP) offers a powerful opportunity to reduce energy expenses while upgrading essential equipment.

The Rural Energy for America Program (REAP) is a federal program administered by USDA Rural Development. Its purpose is to help rural small businesses and agricultural producers invest in energy efficiency improvements and renewable energy systems. Through REAP, eligible businesses can receive grants, guaranteed loans, or a combination of both to help offset the cost of qualifying projects.

For laundromat owners, REAP grants are most commonly used for Energy Efficiency Improvements. These projects focus on replacing older, inefficient equipment with modern, high-efficiency alternatives that measurably reduce energy consumption. Because laundromats are energy-intensive businesses, they are often strong candidates for REAP funding when projects are properly documented.

REAP grants can help fund a wide range of laundromat upgrades, including high-efficiency commercial dryers, modern water heating systems such as high-efficiency or tankless heaters, and upgraded HVAC systems with improved efficiency ratings. Bundling multiple upgrades into a single project often strengthens an application by increasing total energy savings.

Grant funding typically covers up to 50 percent of eligible project costs, depending on the funding cycle and project scoring. For larger projects, REAP also allows a grant to be combined with a USDA-backed loan, potentially covering up to 75 percent of total costs. This structure allows laundromat owners to modernize their facilities while preserving cash flow.

Beyond direct financial assistance, REAP projects often deliver long-term benefits. New equipment typically lowers monthly utility bills, reduces maintenance issues, and improves customer experience through faster dry times and more consistent performance. In many cases, energy savings continue long after the grant-funded equipment has been paid off.

It is important to understand that REAP grants are not automatic and are awarded through a competitive process. Applicants must document projected energy savings, provide equipment quotes, and demonstrate the ability to complete the project financially. Equipment cannot be purchased until after USDA approval, and proper planning is essential.

For laundromat owners willing to invest the time upfront, REAP grants can be a valuable tool for funding necessary upgrades that might otherwise be delayed or downsized. When paired with energy-efficient dryers, water heating systems, and HVAC equipment, REAP can significantly improve both operating costs and long-term business value.

-How Laundromat Owners Can Apply for a USDA REAP Grant-

A Step-by-Step Guide to Funding New Dryers, Water Heaters, and HVAC Systems

Energy costs are one of the largest operating expenses in a laundromat. Upgrading to high-efficiency dryers, modern water heating systems, and new HVAC equipment can significantly reduce monthly utility bills—but the upfront cost can be intimidating.

The USDA Rural Energy for America Program (REAP) helps rural laundromat owners offset those costs through federal grants and loans. This guide walks you through the REAP process from start to finish, so you know exactly what to expect and how to prepare.

What Is the USDA REAP Program?

REAP is a federal program administered by USDA Rural Development. It provides grants, guaranteed loans, or a combination of both to help rural small businesses invest in energy efficiency improvements. Laundromats qualify as small businesses, and equipment such as dryers, water heaters, and HVAC systems often fits well under REAP’s Energy Efficiency Improvement category when energy savings can be documented.

Step 1: Confirm Eligibility

Before applying, confirm that your laundromat is located in an eligible rural area and that your business meets small business requirements. Your local USDA Rural Development office can help confirm eligibility.

Step 2: Register on SAM.gov

All REAP applicants must register on SAM.gov. This process provides your Unique Entity ID (UEI) and verifies your business for federal funding. Registration is free and must remain active throughout the entire process.

-How to Register on SAM.gov-

A Step-by-Step Guide for Laundromat Owners Applying for USDA REAP Grants

Before you can apply for a USDA REAP grant or any other federal funding, your business must be registered in SAM.gov (System for Award Management). This guide walks you through the SAM.gov registration process step by step, using plain language and practical tips specifically for small business and laundromat owners.

Step A: Gather Information Before You Start

• Legal business name (exactly as it appears on tax returns)
• Physical business address (no P.O. boxes)
• Employer Identification Number (EIN) or SSN (for single-member LLCs)
• Bank account and routing number
• Owner or authorized representative contact information
• NAICS code (most laundromats use 812310)

Step B: Create a Login.gov Account

• Go to www.sam.gov
• Click “Sign In” and then “Create an Account”
• You will be redirected to Login.gov
• Create a username and password
• Set up multi-factor authentication (text or authenticator app)
• Verify your email address

Step C: Start a New Entity Registration

• Log in to SAM.gov
• From the menu, select “Register Entity”
• Choose “Register New Entity”
• Select “I want to apply for federal assistance”

Step D: Enter Your Business Information

• Enter your legal business name
• Enter your physical business address
• Confirm your entity structure (LLC, corporation, sole proprietor)
• Enter your EIN or SSN

Step E: Get Your Unique Entity ID (UEI)

• gov will automatically assign your UEI
• No separate DUNS number is required
• Save your UEI for future grant applications

Step F: Enter Banking Information

• Enter your business bank routing number
• Enter your account number
• Confirm the account is in the business name

Step G: Complete Representations and Certifications

• Answer questions about business ownership
• Confirm tax and compliance status
• Review answers carefully for accuracy

Step H: Review and Submit

• Review all entered information
• Correct any errors before submission
• Submit registration
• Watch for confirmation emails from SAM.gov

Step I: Monitor Registration Status

• Initial review can take 7–10 business days
• Respond promptly to any verification emails
• Registration must show as “Active” before applying for grants

Step J: Maintain Your SAM Registration

• SAM registration must be renewed annually
• Update information if business details change
• Keep registration active throughout the REAP process

Common Mistakes to Avoid

• Using a trade name instead of legal business name
• Entering incorrect banking information
• Letting SAM registration expire during grant review
• Paying third-party services (SAM.gov registration is free)

-Continuing How Laundromat Owners Can Apply for a USDA REAP Grant-

Step 3: Define Your Energy Efficiency Project

REAP does not fund general renovations. You must clearly define which equipment is being replaced, what will be installed, and how energy use will be reduced. Many laundromat owners bundle dryers, water heaters, and HVAC upgrades into a single project.

Step 4: Obtain an Energy Audit or Assessment

An energy audit or assessment documents current energy usage and projected savings. This is a critical part of the application and helps USDA evaluate the impact of your project.

Step 5: Gather Equipment Quotes

You will need written quotes for all equipment and installation costs. Do not purchase or install anything before USDA approval, as early expenses are not eligible for reimbursement.

Step 6: Build the Project Budget and Matching Funds Plan

REAP typically funds up to 50% of eligible project costs. You must document where the remaining funds will come from, such as cash, loans, or equipment financing.

Step 7: Assemble and Submit the Application

A complete application includes your project narrative, energy audit, equipment quotes, financial documents, and environmental forms. Applications are competitive and must be submitted before published deadlines.

Step 8: Review, Approval, and Installation

After submission, USDA reviews the application. If approved, you will receive a Letter of Conditions. Only after receiving this approval may you purchase and install equipment.

Step 9: Reimbursement and Closeout

Once equipment is installed, you submit proof of payment and completion to USDA. Grant funds are typically released as reimbursement after final approval.

-USDA REAP Grant Checklist for Laundromat Owners-

Use this checklist to track your progress through the REAP application process.

Eligibility

• ☐ Laundromat is in an eligible rural area
• ☐ Business qualifies as a small business

SAM.gov Registration

• ☐ Registered on SAM.gov
• ☐ Received Unique Entity ID (UEI)
• ☐ SAM registration is active

Project Planning

• ☐ Equipment selected (dryers, water heaters, HVAC)
• ☐ Energy savings identified

Documentation

• ☐ Energy audit or assessment completed
• ☐ Equipment quotes collected
• ☐ Matching funds documented

Application & Approval

• ☐ Application submitted before deadline
• ☐ Letter of Conditions received
• ☐ Equipment purchased after approval

Installation & Reimbursement

• ☐ Equipment installed
• ☐ Invoices and proof of payment submitted
• ☐ Grant funds received