The US Department of Agriculture (USDA) is again accepting applications for loan guarantees for up to 80% of the total eligible project costs up to $250 million. Under the Section 9003 Program, the loan aims to assist in the development, construction and retrofitting of new and emerging technologies focusing on advanced biofuels, renewable chemicals, and bio-based products.
Application deadlines are October 1, 2019 and April 1, 2020. Applications will be evaluated for eligibility, technical and financial feasibility and sufficient project equity. Applicants with the highest priority scoring may be invited to submit Phase 2 applications, while those with lower priority scores not invited to Phase 2 will be carried forward and compete for one additional review cycle.
Phase 1 Applications Include: Project summary, application form, financial statements, financial model, feasibility study, business plan, priority scoring information, intergovernmental consultation and any other information determined by the agency to be necessary to evaluate the application.
Phase 2 Applications Include: Technical assessment/technical report, environmental assessment, lender’s analysis/credit evaluation/supporting materials, appraisals, lender’s proposed loan agreement, estimated timing of loan closing, credit rating, updates to application materials as appropriate and other information determined by the agency to be necessary to evaluate the application including any contracts and agreements.
The project may be located in any of the 50 states and a number of territories and protectorates. Funds may be used to fund the development, construction and retrofitting of Commercial-Scale Biorefineries using Eligible Technology. The biorefinery must produce advance biofuel and may sell the advanced biofuel that it produces as a biofuel, renewable chemical or for other non-fuel usage; process the advanced biofuel into renewable chemicals or other bio-based products; or use the biofuel as a fuel for heat or power in its processes or to generate electricity.
Funding for Biobased Product Manufacturing facilities many involve a stand-alone manufacturing facility or it may be part of a biorefinery. The feedstock or inputs into the manufacturing facility are outputs from a biorefinery (not required to be an advanced biofuel biorefinery). Eligible projects include the development, construction and retrofitting of technologically new commercial-scale processing and manufacturing equipment and required facilities that will be used to convert renewable chemicals and other bio-based outputs into end-user products on a commercial scale.
Refinancing, in certain circumstances, may be eligible.
