USDA Rural Development is offering loan guarantees for the development, construction, and retrofitting of commercial-scale biorefineries. Eligible borrowers include individuals, entities, Indian tribes, state or local governments, corporations, farm cooperatives or farm cooperative organizations, associations of agricultural producers, National Laboratories, institutions of higher education, rural electric cooperatives, public power entities, and consortium of any of these types of entities. Financed entities must provide at least 20% of the financing for eligible project costs, and applications for funding must include an independent feasibility study and technical assessment. Eligible project costs include the purchase and installation of equipment, construction or retrofitting costs, permit and licensing fees, working capital, land acquisition, and the costs of financing.
The project must meet the following requirements:
Eligible advanced biofuels include:
In 2014, "renewable chemicals" and "biofuels" were added to this program under the name of Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program to provide guaranteed loans for the development and construction of commercial-scale biorefineries or for the retrofitting of existing facilities using eligible technology for the development of advanced biofuels.
Deadlines for applications are usually on April 1 and October 1 of each year, with letters of intent due 30 days before the application. Current application deadline is April 1, 2020.
|Incentive Type:||Loan Program|
|Administrator:||US Department of Agriculture|
|Eligible Renewable/Other Technologies:||
|Maximum Loan:||Maximum loan amount: 80% of project costs or $250 million|
Term: 20 years or the useful life of the project, whichever is less
Rate: Lender's customary commercial interest rate, fixed or variable
Fees vary with % guarantee and loan amount
|Name:||7 CFR 4279, Subpart C.|
|Name:||7 USC § 8103|
|Name:||H.R. 8 (American Taxpayer Relief Act of 2012)|
|Name:||9003 Interim Rule|
|Organization:||Biorefinery Assistance Program|
|Name:||Rural Business & Cooperative Service Energy Programs|
|Organization:||U.S. Department of Agriculture|
This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.
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