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FEDERAL LOAN GUARANTEES FOR COMMERCIAL TECHNOLOGY RENEWABLE ENERGY GENERATION PROJECTS UNDER THE FINANCIAL INSTITUTION PARTNERSHIP PROGRAM

Solicitation Number: DE-FOA-0000166

U.S. Department of Energy Loan Guarantee Program Office

Of the approximately three billion nine hundred thirty five million dollars ($3,935,000,000) made available under the Recovery Act, DOE will make available up to seven hundred fifty million dollars ($750,000,000) under this Solicitation to pay the Credit Subsidy Costs of loan guarantees made for Commercial Technology Renewable Energy Generation Projects.

Eligible Lender means any person or legal entity formed for the purpose of, or engaged in the business of, lending money, including, but not limited to, commercial banks, savings and loan institutions, insurance companies, factoring companies, investment banks, institutional investors, venture capital investment companies, trusts, or other entities designated as trustees or agents acting on behalf of bondholders or other lenders;

Borrower means any person, firm, corporation, company, partnership, association, society, trust, joint venture, joint stock company, or other business entity or governmental non-Federal entity that is a borrower under the Loan Agreement and is responsible for repaying the Guaranteed Obligation.

http://www.lgprogram.energy.gov/CTRE.pdf

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Business and Industry Guaranteed Loan Program

The Business and Industry Guaranteed Loan Program is administered by USDA’s regional offices. Under this program, loans are made to public or private companies for the purposes of developing business in rural communities, including reducing the reliance on nonrenewable energy resources by encouraging the development of renewable energy resources (including solar and wind). The general purpose of the loan is to improve, develop, or finance business, and industry in rural communities, and the loan may be used to develop land or facilities as well as keep businesses from closing.

Under the Business and Industry Guaranteed Loan Program, a borrower applies for a loan from an eligible lending institution (federal or state chartered banks, Farm Credit Bank, or other Farm Credit institutions with direct lending authority, Bank for Cooperatives, Savings and Loan Associations, Credit Unions, insurance companies, National Rural Utilities Cooperative Finance Corporations, and mortgage companies that are part of a bank holding company). The lending institution then applies to USDA for a guarantee of such loan.

http://www.rurdev.usda.gov/rbs/busp/b&I_gar.htm

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Rural Energy for America Program Guaranteed Loan

The REAP Guaranteed Loan Program encourages the commercial financing of renewable energy (bioenergy, geothermal, hydrogen, solar, wind and hydro power) and energy efficiency projects. Under the program, project developers will work with local lenders, who in turn can apply to USDA Rural Development for a loan guarantee up to 85 percent of the loan amount.

Borrowers must be an agricultural producer or rural small business. Agricultural producers must gain 50% or more of their gross income from their agricultural operations. An entity is considered a small business in accordance with the Small Business Administration’s (SBA) small business size standards NAICS code. Most lenders are eligible, including national and state-chartered banks, Farm Credit System banks and savings and loan associations. Other lenders may be eligible if approved by USDA.

Eligible project costs include: 1) Post-application purchase and installation of equipment, 2)Post-application construction or improvements, 3) Energy audits or assessments, 4) Permit or license fees, 5) Professional service fees, 6) Feasibility studies and technical reports, 7) Business plans, 8) Retrofitting, 9) Construction of a new energy efficient facility only when the facility is used for the same purpose, is approximately the same size, and based on the energy audit will provide more energy savings than improving an existing facility, 10) Working capital, 11) Land acquisition.

http://www.rurdev.usda.gov/rbs/busp/9006loan.htm

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SBA 7A Guaranty Loan Program

7(a) loan proceeds may be used to establish a new business or to assist in the operation, acquisition or expansion of an existing business. These may include (non-exclusive):

• To purchase land or buildings, to cover new construction as well as expansion or conversion of existing facilities;
• To acquire equipment, machinery, furniture, fixtures, supplies, or materials;
• For long term working capital including the payment of accounts payable and/or for the purchase of inventory;
• To refinance existing business indebtedness which is not already structured with reasonable terms and conditions;
• For short term working capital needs including: seasonal financing, contract performance, construction financing, export production, and for financing against existing inventory and receivable under special conditions; or
• To purchase an existing business.

http://www.sba.gov/services/financialassistance/sbaloantopics/7a/