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U.S. Department of Agriculture (USDA) Loan Guarantees
USDA Loan Guarantees
USDAoffers three loan guarantee programs, two of which, the Business & Industry Loan Guarantee and Renewable Energy for America Program (REAP), have a maximum loan amount of $25 million and require equity of at least 20% (thus supporting a $31.25 million project). Providing the project qualifies under REAP, one can apply for both a B&I and REAP loan guarantee, thus doubling the amount of loan that will qualify, up to $50 million, which will support a $62.5 million project. The technologies used must already be commercially proven and commercially available.
TheB&I program accepts applications on a rolling basis. Solicitations for REAP applications are issued annually in the spring. For further information, click on the buttons below:
The USDA's Section 9003 Biorefinery, Renewable Chemical and Biobased Product Manufacturing Assistance Program supports first-of-kind technologies. Loan guarantees will support loans of up to $250 million. There are two applications periods each year. Letters of Intent must be submitted prior to March 1 and September 1. Full applications are due April 1 and October 1.
All USDA programs are designed to support rural communities and promote rural development, hence, the programs are restricted to rural areas with populations of no more than 50,000.
To determine if a project falls within a rural area, refer to USDA's interactive Property Eligibility map. Simply put in the address or the cross streets and the map will show whether or not it lies in an eligible area.
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