The 18-year-old is set to move to Tattershall Road on a temporary basis after finding his first team opportunities restricted at The Jakemans Stadium.
Reed is a contract player and therefore unable to play for the Pilgrims' second string in the Lincolnshire League.
Manager Graham Drury has moved to reassure Reed that he still has a big future with United.
Drury told bufc.co.uk: "This move is only for a month for James to get some games.
"I believe he has a big future at Boston United and he simply needs games at this moment in time. It will do him good to play 90 minutes on a regular basis over the next month.
"I can really see him pushing for a first team berth when he is back."