Funding to establish, reopen, retrofit, expand, or improve facilities using trees harvested from federal or Tribal lands
WASHINGTON, Dec. 23, 2024 – U.S. Department of Agriculture (USDA) Secretary Tom Vilsack today unveiled a new program to support American wood processing facilities. USDA Rural Development is partnering with USDA Forest Service to provide funding through the new Timber Production Expansion Guaranteed Loan Program (TPEP). The program will provide loan guarantees to approved lenders to finance projects to utilize wood products while improving forest health and reducing the risk posed by wildfires, insects, and disease.
“At USDA, we’ve been working hard to develop this financing tool to help support the timber industry,” said Rural Development Maine State Director Rhiannon Hampson. “Wood-based manufacturing is part of our Maine heritage, and with sufficient investment, it can play a vital role in the future. Innovation in the forestry sector introduces new opportunities all the time. We hope this new guaranteed loan program will help translate more of those opportunities into good jobs and well-managed forests for generations to come.”
Through TPEP, USDA Rural Development and the Forest Service will make $220 million available in loan guarantees for borrowers to establish, reopen, retrofit, expand, or improve wood processing facilities, sawmills and paper mills. Eligible projects must initially use ecosystem restoration byproducts from federal or Tribal lands considered high- or very-high priority for ecological restoration involving vegetation removal.
Individuals, organizations, federally recognized Tribes, or businesses engaged (or proposing to engage) in these activities may be eligible to participate by working with a qualified lender. Examples of approved lenders include federal and state-chartered banks, savings and loan associations, credit unions, and others. USDA will begin accepting applications through qualified lenders on December 26, 2024, and will continue until all funds are spent.
In addition to supporting the timber industry, the program is designed to benefit up to 20 million acres of national forests managed by USDA Forest Service. It also will complement the Forest Service’s 10-year Wildfire Crisis Strategy. A digital map is available online at the TPEP Dashboard (use this link: tinyurl.com/TPEP-lands) to identify those areas the Forest Service has identified as high or very high priority for the program.
More information will be announced in the coming days to supplement the program fact sheet. Potential borrowers may learn more through an upcoming TPEP webinar, scheduled for January 6, 2025, at 1:00 p.m. ET. Anyone interested in the program is encouraged to participate. Potential applicants in Maine may contact Jay Fortier, Rural Development Business and Cooperative Specialist (call 207-289-2814 or email jay.fortier@usda.gov).
To subscribe to USDA Rural Development updates, visit the GovDelivery subscriber page.
###
USDA is an equal opportunity provider, employer and lender.