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Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program Loan Guarantees

Open Date:

Continuous

Close Date:

Letter of Intent deadline on or before September 1, 2022; Completed Applications must be submitted no later than 11:59 p.m. Eastern time, October 1, 2022

Eligible Recipients:

  • Educational Institution
  • General Public
  • Local Government
  • Native/Tribal Entity
  • Private Sector
  • Public Utility Entity
  • State Government

Program Purpose:

Other Infrastructure

Reserved for Energy
Communities?

No

Upcoming Milestones:

Two-Phase Application Process

The first step to apply is for Lender (or the borrower) to submit to the Agency a Letter of Intent to apply for a loan guarantee. The Agency must receive the Letter of Intent at least 30 calendar days prior to the application deadline.

Next, lenders must submit a complete (Phase 1) application. Phase 1 applications, which are the initial application submissions, must provide information to determine Lender, Borrower and Project eligibility; preliminary economic and technical feasibility; and the priority score of the application.

Based on the priority score ranking, the Agency will invite applicants whose Phase 1 applications receive higher priority scores to proceed to Phase 2 of the process.

Phase 2 applications include the environmental report, technical report, financial model, and the lender’s credit evaluation. The Phase 2 materials are submitted as the ongoing project develops and the planning and engineering is finalized.

Please refer to the Application Guide for detailed instruction and guidance for submitting your application.

Funded by:

U.S. Department of Agriculture

Overview

What does this program do?
This program provides loan guarantees up to $250 million to assist in the development, construction and retrofitting of new and emerging technologies. These technologies are: advanced biofuels, renewable chemicals and biobased products.

Who may apply for this program?
You must have legal authority, experience and expertise and demonstrate that you meet the FDIC definition of “Well Capitalized” at the time of application and issuance of the Loan Note Guarantee, including:

  • Federal or state-chartered banks.
  • Federally-recognized tribes.
  • Cooperatives.
  • Farm Credit Bank, or other Farm Credit System institution with direct lending authority.
  • Credit Unions subject to credit examination and supervision by a state agency or the National Credit Union Administration.
  • The National Rural Utilities Cooperative Finance Corporation.

What kind of borrower may the lender request a guarantee for?

  • Individuals.
  • Public and private entities.
  • State and local governments.
  • Corporations.
  • Indian tribes.
  • Farm Cooperatives and Farm Cooperative Organizations.
  • Associations of Agricultural Producers.
  • National Laboratories.
  • Institutions of Higher Education.
  • Public Power entities.

Are there additional requirements?

  • The project must be located in a state.
  • The total amount of a federal participation (loan guarantee, plus other federal funding) must not exceed 80 percent of the total eligible project costs.
  • The borrower and other principals involved in the project must make a significant cash equity contribution.

What is an eligible area?
The project may be located in any of the 50 states and a number of territories and protectorates – see 7 CFR 4279.2 under “State.”

How may funds be used?
Funds may be used to fund the development, construction and retrofitting of:

  • Commercial-Scale Biorefineries using Eligible Technology.
  • Biobased Product Manufacturing facilities that use Technologically New Commercial-Scale processing and manufacturing equipment to convert Renewable Chemicals and other biobased outputs of Biorefineries into end-user products on a commercial scale.
  • Refinancing, in certain circumstances, may be eligible.

In broad terms, two types of projects are eligible for the program – Biorefineries, and Biobased Product Manufacturing facilities.

Funding Details

Funding Source:
Funding Type:
Loan
Total Amount Available:
$25,000,000
Limit per Applicant:
No limit stated
Estimated Awards:
Not stated

Applicant Guidance

Contact Information

Energy Programs
Phone: (202) 720-0410
[email protected]

 

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