USDA – Biorefinery Assistance Program

USDA – Biorefinery Assistance Program

Jurisdiction:	Federal
Incentive Type:	Loan Program
Industries:	Energy, Bio-fuel
Eligible Sector:	Business
Category:	Financial Incentive
Time Period:	FY 2015
Governing Body:	US Department of Agriculture
What’s it worth?:	$250 million

This program provides loans of up to $250 million for the development of Advanced Biofuels, Renewable Chemicals, and Biobased Product Manufacturing. These loans may fund the development, construction and retrofitting of: Commercial-Scale Biorefineries, Biobased Product Manufacturing Facilities, or refinancing.

Eligible participants include lenders who are defined as “Well Capitalized” by the FDIC. Projects must be located in a U.S. state and may not exceed the amount of 80% of the projected cost of the project. A significant cash equity contribution must be made by the borrower and any other principle entities. Loan terms and agreements are in accordance to 7 CFR 4279.233 and 4279.234.

Prior to applying applicants must be pre-registered with the System for Award Management (SAM) and have a Data Universal Number System (DUNS). Applicants must submit a Letter of intent at least 30 days prior to the deadline before completing the two-phase application process. Phase 1 and 2 applications are outlined below:

Phase 1:

• Project Summary
• Application Form
• Financial Statements
• Feasibility Study
• Business Plan
• Description of Borrower’s ownership structure
• Any other relevant information determined by the Agency

Phase 2

• Updates
• Appraisal
• Loan Agreement
• Environmental Assessment
• Evaluation and Rating of Project’s Indebtedness
• Lender’s Analysis
• Loan Note Guarantee
• Technical Assessment

Applicants that are not invited to submit Phase 2 will be pushed to one additional cycle.