Program Status: Open
Current Application Deadline: October 1, 2016
Required Letter of Intent Due: September 1, 2016 (Minimum 30 days prior to Application Deadline)
Federal Register: [.PDF]
Fact Sheet: [PDF]
Stakeholder Forum Video: Webcast
What does this program do?
This program assists in the development, construction, and retrofitting of new and emerging technologies for the development of Advanced Biofuels, Renewable Chemicals, and Biobased Product Manufacturing by providing loan guarantees for up to $250 million.
Who may apply for this program?
Lenders with legal authority, sufficient experience and expertise, and can demonstrate they meet the FDIC definition of “Well Capitalized” at the time of application and issuance of Loan Note Guarantee, including:
- Federal or State chartered bank
- Federally recognized tribes
- 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?
- Public and private entities
- State and local governments
- 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
- Total amount of a Federal participation (loan guarantee, plus other Federal funding) will not exceed 80 percent of 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
How do we get started?
The Section 9003 Program uses a two-phase application process which is described on the Forms & Resources tab. The Federal Register also details the two-phase application process.
What are the application deadlines?
Letters of Intent must be received by September 1 and March 1 of each year.
Complete Phase 1 applications must be received by October 1 and April 1 of each year.
- A complete Phase 1 application must be received by the Agency on or before April 1 to be considered for funding for that fiscal year.
Who can answer questions?
Contact our Energy Division at the following address:
USDA Rural Development, Energy Division
Attention: Technology Branch
1400 Independence Aveneue, SW, Stop 3225
Washington, DC 20250-3225
You may also contact Todd Hubbell at (202) 720-0410 or Todd.Hubbell@wdc.usda.gov
What governs this program?
- Code of Federal Regulation, 7 CFR 4279, Subpart C and 7 CFR 4287, Subpart D, and continued in the Agricultural Act of 2014 (2014 Farm Bill)(Pub. L. 113-79)
- This program is authorized under 7 U.S.C. 8103
NOTE: Because citations and other information may be subject to change, please always consult the program Instructions listed in the section above titled, “What governs this program?” You may also contact your Rural Development State Energy Coordinator for assistance.