U.S. Government Loan Guarantee Programs for Renewable EnergyPosted by renewableenergyconsulting on March 15th, 2017 There are four U.S. government loan guarantee programs that provide low-interest loans for renewable energy and energy efficiency projects. Two of these programs – the US Department Of Agriculture Loans (USDA’s) Business & Industry (B&I) Loan Guarantee Program and Rural Energy for America Program (REAP) – provide funding for installing, using and deploying existing, commercially available technologies. The B&I program also provides guarantees for wide variety of other loans, including:
The other two programs –USDA’s Section 9003 Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program and the U.S. Department of Energy’s (DOE’s) Title XVII Innovative Clean Energy Loan Guarantee Program – are designed specifically forcommercializing first-of-a-kind technologies. Existing, Commercially Available Technologies The USDA’s B&I and REAP programs provide guarantees for loans from commercial lenders. The two advantages of these guarantees are they reduce risk for the lenders, hence, make the lenders much more willing to finance a project. The second advantage is that, because of the guarantee, lenders offer a lower interest rate, often 1 point or more below their normal commercial lending rate. The guarantees cover loans up to million per project. In some cases, it is possible to combine the B&I and REAP guarantees to cover a loan for a million project. First-of-a-Kind Technologies For first-of-a-kind technologies, there are two choices:
For further information on applying for financing through one of these loan guarantees, please contact: Craig Evans, Managing Director, Renewable Energy Consulting Services, Tel: 434-303-0800, Email: craig@renwable-energy.consulting, or visit the RECS website atwww.renewable-energy.consulting.
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Renewable Energy Consulting Services is a professional blogger who likes to write about all Financing, grants or loan related topics. He shares ideas on Oregon Renewable Energy Companies, DOE Loan Guarantee, Renewable Energy Industry, Government Funding Solutions and more.
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