federal financing programs for clean … financing...federal financing programs for clean energy by...

2016

FEDERAL FINANCING PROGRAMS for

CLEAN ENERGY

http://www.energy.gov/finance

FEDERALFINANCINGPROGRAMSFORCLEANENERGY•2016|INSIDECOVER

THISPAGEINTENTIONALLYLEFTBLANKFORPRINTING

CONTENTSForeword 3

Acknowledgements 5

IndexesofFederalFinancingProgramsforCleanEnergy 6

• FederalFinancingProgramsforCleanEnergybyAdministeringAgency• FederalFinancingProgramsforCleanEnergybyProgramType

ProfilesofFederalFinancingPrograms 11forCleanEnergybyAgency

• UnitedStatesDepartmentofEnergy(DOE)• OverseasPrivateInvestmentCorporation(OPIC)• UnitedStatesAgencyforInternationalDevelopment(USAID)• UnitedStatesDepartmentofAgriculture(USDA)• UnitedStatesDepartmentofHousingandUrbanDevelopment(HUD)• UnitedStatesDepartmentofState(STATE)• UnitedStatesDepartmentofTransportation(DOT)• UnitedStatesDepartmentoftheTreasury(TREASURY)• UnitedStatesEnvironmentalProtectionAgency(EPA)• UnitedStatesSmallBusinessAdministration(SBA)

FEDERALFINANCINGPROGRAMSFORCLEANENERGY•2016|PAGE1

FOREWORD

FederalFinancingProgramsforCleanEnergyisaresourceguidetoU.S.governmentprogramsthatsupportthedevelopmentofcleanenergyprojectsintheU.S.andabroad.Theprogramslistedhereareresourcesthatcansupportcleanenergydeployment,andinturnleadtonewinvestment,jobcreation,andadditionalbenefitsthatcaninvigoratecommunities.Businessowners,homeowners,investors,policymakers,andotherscanusethisguideasa“YellowPages”tofederalprograms.Foreveryprogramlisted,theguideidentifiesadditionalcontactinformationtoanswerquestionsandprovideadditionaldirection.Insomesituations,thefinancingprogramslistedarespecificallydesignedtosupportenergy-relatedprojects.Inothercaseshowever,energyefficiencyandcleanenergyareamongmanyqualifyingpurposesfortheparticularfinancingprogram.ThisguideisacompaniontotheDatabaseforStateIncentivesforRenewableEnergyandEnergyEfficiency(DSIRE),whichprovidesstate-specificinformationonincentivesandpoliciestosupportcleanenergyandenergyefficiencyintheUnitedStates.MoreinformationonDSIREisavailableatwww.dsireusa.org.AdditionalinformationisavailablethroughtheU.S.DepartmentofEnergyanditsCleanEnergyInvestmentCenter(CEIC).MoreinformationontheDOEfinancingprogramsandtheCEICisavailableatwww.energy.gov/finance.


ACKNOWLEDGEMENTS

LeadauthorsofFederalFinancingProgramsforCleanEnergyareKennethAlstonandKatySartoriusoftheU.S.DepartmentofEnergy.Specialappreciationgoesouttoexpertsandcollaboratorsacrossthefederalgovernment,including:JohnMacWilliams,MarkMcCall,NidhiThakar,SydneySchneir,BrianMahar,DanielBicknellandRishiSahgalattheU.S.DepartmentofEnergy;BethanyLesserandNadiaRhaziattheOverseasPrivateInvestmentCorporation;JeffreyHaeni,AndrewGisselquist,GeetaUhl,andClaireEverhartattheU.S.AgencyforInternationalDevelopment;TrevorReuschelandDougO’BrienattheU.S.DepartmentofAgriculture;SoniaBrubakerandGeorgeAmesattheU.S.EnvironmentalProtectionAgency;CrystalBergemannattheU.S.DepartmentofHousingandUrbanDevelopment;JohnMillerandLindaReillyattheU.S.SmallBusinessAdministration;AnnShikanyattheU.S.DepartmentofTransportation;andRosaMartinezattheU.S.DepartmentofTreasury.AdditionalthanksalsogoestotheOfficeofManagementandBudgetfortheirguidance.


FEDERALFINANCINGPROGRAMSFORCLEANENERGYBYADMINISTERINGAGENCY

U.S.DepartmentofEnergy 11

• LoanProgramsOffice(LPO) 13• LPO:TitleXVIIInnovativeCleanEnergyLoanGuaranteeProgram 14

� TitleXVIICaseStudy 21• LPO:AdvancedTechnologyVehiclesManufacturing(ATVM)DirectLoanProgram 22

� ATVMCaseStudy 24• EnergySavingsPerformanceContractsforFederalBuildings 25

OverseasPrivateInvestmentCorporation 27

• DebtFinancing 29• PoliticalRiskInsurance 30• SupportForPrivateEquityFunds 31

� OPICCaseStudy 32

U.S.AgencyforInternationalDevelopment 33

• DevelopmentCreditAuthority 35• DevelopmentInnovationVentures 37

U.S.DepartmentofAgriculture 39

• EnvironmentalQualityIncentivesProgram 41• Multi-FamilyHousingEnergyEfficiencyInitiative 43• RepoweringAssistanceProgram 46• RuralDevelopmentBioenergyProgramforAdvancedBiofuelsPaymentProgram 48• RuralDevelopmentBiorefinery,RenewableChemical,andBiobasedProduct

ManufacturingAssistanceProgram 50• RuralDevelopmentLoan&GrantAssistance(SeveralPrograms) 52• RuralEnergyforAmericaProgram 56• TheRuralUtilitiesService:ElectricLoanProgram 58• TheRuralUtilitiesService:EnergyEfficiency&ConservationLoanProgram 60• TheRuralUtilitiesService:HighEnergyCostGrantProgram 61• TheRuralUtilitiesService:RuralEnergySavingsProgram 63

� AdditionalUSDALocalImplementationInformation 64


U.S.DepartmentofHousingandUrbanDevelopment 65

• EnergyEfficientMortgageProgram 67• FHARiskSharing 69• MultifamilyHousing 71• PublicHousingCapitalFund 73• PublicHousingEnergyPerformanceContracts 75• RehabilitationMortgageAssistance:Section203(k)Loans 76• Section108LoanGuaranteeProgram 78

� HUDCaseStudy 81� AdditionalHUDLocalImplementationInformation 82

U.S.DepartmentofState 83

• CleanEnergyFinanceFacilityfortheCaribbeanandCentralAmerica(CEFF-CCA)85

U.S.DepartmentofTransportation 89

• TransportationInfrastructureFinanceandInnovationActProgram 91

U.S.DepartmentoftheTreasury 93

• NewMarketsTaxCredits 95• QualifiedEnergyConservationBonds 97

U.S.EnvironmentalProtectionAgency 99

• CleanWaterStateRevolvingFund 101� CWSRFCaseStudy 103

• DrinkingWaterStateRevolvingFund 105� DWSRFCaseStudy 108

U.S.SmallBusinessAdministration 109

• 7(A)LoanProgram 111• 504LoanProgram 113• SmallBusinessInvestmentCompany 115

� SBACaseStudy 117


FEDERALFINANCINGPROGRAMSFORCLEANENERGYBYPROGRAMTYPE

FinancingProgramsServingMultipleMarketSegments

• DOE:LoanProgramsOffice(LPO) 13• DOE:TitleXVIIInnovativeCleanEnergyLoanGuaranteeProgram 14• DOE:AdvancedTechnologyVehiclesManufacturing(ATVM)DirectLoanProgram22• USDA:TheRuralUtilitiesService:ElectricLoanProgram 58• USDA:TheRuralUtilitiesService:EnergyEfficiency&ConservationLoanProgram 60• USDA:TheRuralUtilitiesService:HighEnergyCostGrantProgram 61• USDA:TheRuralUtilitiesService:RuralEnergySavingsProgram 63• HUD:Section108LoanGuaranteeProgram 78• TREASURY:NewMarketsTaxCredits 95• TREASURY:QualifiedEnergyConservationBonds 97

SingleFamilyHousing

• HUD:EnergyEfficientMortgageProgram 67• HUD:RehabilitationMortgageAssistance:Section203(k)Loans 76

Multi-FamilyHousing

• USDA:Multi-FamilyHousingEnergyEfficiencyInitiative 43• HUD:FHARiskSharing 69• HUD:MultifamilyHousing 71• HUD:PublicHousingCapitalFund 73• HUD:PublicHousingEnergyPerformanceContracts 75

CommercialBuildings&Facilities

• USDA:EnvironmentalQualityIncentivesProgram 41• USDA:RepoweringAssistanceProgram 46• USDA:RuralDevelopmentBioenergyProgramfor

AdvancedBiofuelsPaymentProgram 48• USDA:RuralDevelopmentBiorefinery,RenewableChemical,and

BiobasedProductManufacturingAssistanceProgram 50• USDA:RuralDevelopmentLoan&GrantAssistance(SeveralPrograms) 52• USDA:RuralEnergyforAmericaProgram 56• SBA:7(A)LoanProgram 111• SBA:504LoanProgram 113


PublicBuildings&Facilities

• DOE:EnergySavingsPerformanceContractsforFederalBuildings 25

InfrastructureProjects

• DOT:TransportationInfrastructureFinanceandInnovationActProgram 91• EPA:CleanWaterStateRevolvingFund 101• EPA:DrinkingWaterStateRevolvingFund 105

FinanceFacilitiesforManufacturing&SupplyChainCompanies

• SBA:7(A)LoanProgram 111• SBA:504LoanProgram 113• SBA:SmallBusinessInvestmentCompany 115

FinancingProgramsforInternationalProjects

• OPIC:DebtFinancing 29• OPIC:PoliticalRiskInsurance 30• OPIC:SupportForPrivateEquityFunds 31• USAID:DevelopmentCreditAuthority 35• USAID:DevelopmentInnovationVentures 37• STATE:CleanEnergyFinanceFacilityfortheCaribbean&CentralAmerica 85


• LoanProgramsOffice(LPO)

• LPO:TitleXVIIInnovativeCleanEnergyLoanGuaranteeProgram

� TitleXVIICaseStudy

• LPO:AdvancedTechnologyVehiclesManufacturing(ATVM)DirectLoanProgram

� ATVMCaseStudy

• EnergySavingsPerformanceContractsforFederalBuildings

FEDERAL F INANCINGPROGRAMS FOR CLEANENERGY

UNITEDSTATESDEPARTMENTOFENERGY


DOELoanProgramsOffice(LPO)

DESCRIPTION

TheU.S.DepartmentofEnergy’sLoanProgramsOffice(LPO)investsinthepowerofAmericaninnovation.LPOinvestmentsacceleratethedeploymentofinnovativecleanenergyprojectsandadvancedtechnologyvehiclemanufacturingfacilitiesacrosstheUnitedStates.Itsteamoftechnical,financial,environmental,andlegalprofessionalsisdedicatedtoadvancinganenergystrategythatavoids,reduces,orsequestersgreenhousegases.Todate,LPOhassupportedalarge,diverseportfolioofmorethan$30billioninloans,loanguarantees,andcommitmentscoveringmorethan30projectsacrosstheUnitedStates.Together,theseprojectshavegeneratedmorethan$50billionintotalprojectinvestment,supportedjobcreation,cutpollution,andenhancedAmericancompetitivenessintheglobaleconomy.LPOhasmorethan$40billioninremainingloanandloanguaranteeauthoritytofinanceinnovativecleanenergyprojectsandadvancedtechnologyvehiclesmanufacturing.

ELIGIBLEACTIVITIESANDINVESTMENTS

Applicationsarecurrentlybeingacceptedundertwoprograms:

• TitleXVIIInnovativeCleanEnergyLoanGuaranteeProgram• AdvancedTechnologyVehiclesManufacturing(ATVM)DirectLoan

ProgramFORMOREINFORMATION

TitleXVIILoanGuaranteeProgramwww.energy.gov/lpo/title-xviiPhone:202-586-8336Fax:202-586-7366Email:lgprogram@hq.doe.govU.S.DepartmentofEnergyLP101000IndependenceAvenue,SWWashingtonD.C.20585

ATVMDirectLoanProgramwww.energy.gov/lpo/atvmPhone:202-586-8146Fax:202-586-7809Email:atvmloan@hq.doe.govU.S.DepartmentofEnergyLP201000IndependenceAvenue,SWWashingtonD.C.20585


http://www.energy.gov/lpo

DOELoanProgramsOfficeTitleXVIIInnovativeCleanEnergyLoanGuaranteeProgram

DESCRIPTION

LPOhasmorethan$24billioninremainingloanauthoritytohelpfinanceinnovativecleanenergyprojects.TheTitleXVIIinnovativecleanenergyprojects(TitleXVII)loanprogramprovidesloanguaranteestoacceleratethedeploymentofinnovativecleanenergytechnology.TheU.S.DepartmentofEnergyisauthorizedtoissueloanguaranteespursuanttoSection1703ofTitleXVIIoftheEnergyPolicyActof2005.Loanguaranteesaremadetoqualifiedprojectsandapplicantswhoapplyforfundinginresponsetoopentechnology-specificsolicitations.TheTitleXVIIloanprogramappliestoawiderangeofenergytechnologies,includingadvancedfossilenergy,nuclearenergy,renewableenergy,andenergyefficiency.


TobeeligibleforaTitleXVIIloanguarantee,aprojectmustmeetallofthefollowingrequirements:

• Bean“EligibleProject”asdefinedinanopensolicitationinthetechnologyareadescribedtherein;

• Employ“neworsignificantlyimproved”technologiesascomparedtocommercialtechnologiesinservicesintheUnitedStatesatthetimetheguaranteeisissued;

• Avoid,reduce,orsequestergreenhousegasemissions;• BelocatedintheUnitedStates(foreignownershiporsponsorshipof

theprojectsispermissibleaslongastheprojectsislocatedinoneofthefiftystates,theDistrictofColumbia,oraU.S.territory);and,

• Provideareasonableprospectofrepayment.

Inaddition,anapplicantmustdemonstratethatithassufficientfundstocarryouttheprojectandislimitedfromreceivingcertainotherfederalsupportasmorefullydescribedintheapplicablesolicitation.

LPOiscurrentlyacceptingapplicationsinresponsetothefollowingopenTitleXVIIsolicitations:

1) AdvancedFossilEnergyProjectsSolicitation


http://www.energy.gov/lpo/downloads/energy-policy-act-2005-0

Thissolicitationseeksapplicationsforprojectsthatcoverarangeofadvancedfossiltechnologies.Thesetechnologiescouldincludeanyfossiltechnologythatisneworsignificantlyimproved,ascomparedtomoreestablishedtechnologiesinserviceintheU.S.,andreducesgreenhousegasemissions.Applicantsshouldreviewthefinalsolicitationandallsupplementsbeforesubmittinganapplication.Thesematerialsareavailableonlineat:http://go.usa.gov/cuZCjWhileeligibilitywillultimatelybeevaluatedonaprojectbyprojectbasis,LPOhasidentifiedfourtechnologyareasofinterestunderthissolicitation:

• TechnologyArea1:AdvancedResourceDevelopment

Resourcedevelopmentandextractioncanbeanenergyintensiveprocessandamajorcontributoroflifecyclegreenhousegasemissionsassociatedwithfossilfueluse.Together,theprocessesaccountforroughlyfivepercentoftheUnitedStatesgreenhousegasemissions.Advancesintechnologiesandpracticesassociatedwithdevelopingcoal,naturalgas,andoilresourcesoffertheabilitytoimproveefficienciesandreduceupstreamgreenhousegasemissionsassociatedwithproducinganddeliveringfossilenergytoendusers.DOEanticipatesqualifyingprojectsmayinclude,butarenotlimitedto,thefollowing:noveloilandgasdrilling,stimulation,andcompletiontechnologiesthatavoid,reduce,orsequestergreenhousegases;useofassociatedgasproductiontoreduceflaring;coal-bedmethanerecoverytoreducemethaneemissionsintotheatmosphereassociatedwithcoalmining;undergroundcoalgasification;andmethaneemissionscapturefromenergyproduction,transmission,ordistribution.

• TechnologyArea2:CarbonCaptureFossil-basedenergysystemsarepoint-sourcesthatgenerateCO2intheirprocessesandtypicallyemitlargevolumesofCO2intotheatmosphere.Currently,thesefacilitiesaccountforoverhalfoftheUnitedStates’annualgreenhousegasemissions.ThepurposeofcarboncapturetechnologyistoselectivelyremoveCO2fromprocessstreamsandfluegases,andproduceaconcentratedstreamthatcanbecompressedandtransportedtoapermanentstoragesite.DOEanticipatesqualifyingprojectsmayinclude,butarenotlimitedto,thefollowing:CO2capturefromsynthesisgasesinfuelreformingorgasificationprocesses;CO2capturefromfluegasesintraditionalcoalornaturalgaselectricitygeneration;andCO2capturefromeffluentstreamsofindustrialprocessingfacilities.

• TechnologyArea3:Low-CarbonPowerSystemsFossil-basedelectricitygenerationtraditionallyinvolvesfuelcombustionwithairasaheatandpowersource,producingafluegaswithlowconcentrationsofCO2,and,therefore,makingtheadoptionofcarboncapturemoredifficult.Novelprocesseshave


beenproposedthatgeneratefossil-basedelectricitybutdonotrequiretraditionalcarboncapturetechnologyinordertoreduceCO2emissions.DOEanticipatesqualifyingprojectsmayinclude,butarenotlimitedto,thefollowing:coalornaturalgasoxycombustion;chemicalloopingprocesses;hydrogenturbines;andsynthesisgas,naturalgas,orhydrogenbasedfuelcells.

• TechnologyArea4:EfficiencyImprovementsIndustrialfossil-basedsystemstypicallyutilizeonlyafractionoftheenergyavailablefromtheirfeedstocksandoftenrejectalargeamountoflowqualityandwasteheatfromtheirprocesses.Technologyimprovementstoincreasetheefficiencyoffossil-basedsystemscanresultinreducedemissions-per-productandbetterfuelutilization.DOEanticipatesqualifyingprojectsmayinclude,butarenotlimitedto,thefollowing:combinedheatandpower;wasteheatrecoveryonindustrialfacilities;high-efficiencydistributedfossilpowersystems;andhightemperaturematerialsforfossil-basedsystems.

2) AdvancedNuclearEnergyProjectsSolicitationThissolicitationseeksapplicationsforprojectsthatcoverarangeofadvancednucleartechnologies.Thesetechnologiescouldincludeanynucleargenerationorfront-endtechnologythatreducesgreenhousegasemissionsandisneworsignificantlyimproved,ascomparedtomoreestablishedtechnologiesinserviceintheUnitedStates.Applicantsshouldreviewthefinalsolicitationandallsupplementsbeforesubmittinganapplication.Thesematerialsareavailableonlineat:http://go.usa.gov/cuZCxWhileeligibilitywillultimatelybeevaluatedonaproject-by-projectbasis,LPOhasidentifiedfourkeytechnologyareasofinterestunderthissolicitation:• TechnologyArea1:AdvancedNuclearReactors

Thisareafocusesonnuclearenergyprojectswithstate-of-the-artdesignimprovementsintheareasoffueltechnology,thermalefficiency,modularizedconstruction,safetysystems,andstandardizeddesign.

• TechnologyArea2:SmallModularReactors(SMRs)Thisareafocusesonnuclearenergyprojectswithstate-of-the-artdesignimprovementsintheareasoffueltechnology,thermalefficiency,modularizedconstruction,safetysystems,andstandardizeddesignandarenominally300MWeorsmallerinsize.

• TechnologyArea3:UpratesandUpgradesatExistingFacilitiesThisareafocusesonprojectsconsistingofimprovementsand/ormodificationstoanexistingreactorthatis(1)operatingbutthatduetosuchimprovementsand/ormodificationswilloperatemoreefficientlyand/orwillincreasecapacity;(2)isnotoperating


andcannotoperatewithoutsuchimprovementsand/ormodificationsor;(3)isoperatingbutwouldberequiredtoceaseoperatingunlesssuchimprovementsand/ormodificationsaremade.

• TechnologyArea4:Front-EndNuclearThisareafocusesonadvancednuclearfacilitiesforthe“front-end”ofthenuclearfuelcycle.Ofthe$12.5billionavailableunderthissolicitation,$2billionisavailableexclusivelyfor“front-end”projects.Thiscouldinclude:

a)UraniumConversion:ProjectsthateconomicallyconvertU3O8powderintoagaseousformofuraniumhexafluoride;b)UraniumEnrichment:ProjectsorfacilitiesthattransformnaturaluraniumoruraniumtailstoahigherisotopiccontentofU235includingby(1)gascentrifugeor(2)laserisotopeseparation;andc)NuclearFuelFabrication:Projectsthatfabricatenuclearfuelincluding(1)productionofUO2powderthatis“reconverted”fromenrichedUF6gasfromenrichmentplants;(2)formationofUO2pelletsfromUO2powderthroughcompactionandsintering;and(3)fuelassembly(i.e.insertionofpelletsintozircaloytubesandformationofafuelassemblyusingfasteners.)

3) RenewableEnergyandEfficientEnergyProjectsSolicitation

Thissolicitationseeksapplicationsforprojectsthatcoverarangeofrenewableenergyandenergyefficienttechnologies.Thesetechnologiescouldincludeanyrenewableenergyorenergyefficiencytechnologythatisneworsignificantlyimproved,ascomparedtomoreestablishedtechnologiesinserviceintheU.S.,andreducesgreenhousegasemissions.Applicantsshouldreviewthefinalsolicitationandallsupplementsbeforesubmittinganapplication.Thesematerialsareavailableonlineat:http://go.usa.gov/cuZaQWhileeligibilitywillultimatelybeevaluatedonaprojectbyprojectbasis,LPOhasidentifiedfivetechnologyareasofinterestunderthissolicitation:• TechnologyArea1:AdvancedGridIntegrationandStorage

Thisareafocusesonrenewableenergysystemsthatmitigateissuesrelatedtovariability,dispatchability,congestion,andcontrolbyincorporatingtechnologiessuchasdemandresponseorlocalstorage.Theseadvancedsystemdesignswilldemonstrategreatergridcompatibilityofgenerationfromrenewableresourcesandopenupanevenlargerroleforrenewablepowergeneration.DOEanticipatesqualifyingprojectsmayinclude,butarenotlimitedto,thefollowing:renewableenergygeneration,includingdistributedgeneration,incorporatingstorage;smartgridsystems


incorporatinganycombinationofdemandresponse,energyefficiency,sensing,andstoragetoenablegreaterpenetrationofrenewablegeneration;microgridprojectsthatreduceCO2emissionsatasystemlevel;andstorageprojectsthatclearlyenablegreateradoptionofrenewablegeneration.

• TechnologyArea2:Drop-inBiofuelsThisareafocusesonbiofuelsthataremorecompatiblewithtoday’sengines,deliveryinfrastructureandrefuelingstationequipment.Theseprojectstakeadvantageofexistinginfrastructurebyprovidingnearlyidenticalbio-basedsubstitutesforcrudeoil,gasoline,dieselfuel,andjetfuel,orproduceintermediatefuelfeedstocksthatcanbedeliveredtoandintegratedintoexistingoilpetroleumrefineries.Thesetypesofprojectswouldnotberestrictedbycurrentethanol/biodieselblendlevelsandcoulddriveacatalyticchangeinthefuelsmarket.DOEanticipatesqualifyingprojectsmayinclude,butarenotlimitedto,thefollowing:newbio-refineriesthatproducegasoline,dieselfuel,and/orjetfuel;bio-cruderefiningprocesses;andmodificationstoexistingethanolfacilitiestogasoline,dieselfuel,and/orjetfuel.

• TechnologyArea3:Waste-to-EnergyThisareafocusesonprojectsharnessingwasteproductssuchaslandfillmethaneandsegregatedwasteasasourceofenergyorfuel.Thesetypesofprojectswillenablecommercialscaleutilizationofwastematerialswhichareotherwisediscardedandproducesignificantclean,renewableenergy.DOEanticipatesqualifyingprojectsmayinclude,butarenotlimitedto,thefollowing:methanefromlandfillsorranchesviabiodigesterstoheatandpower;cropwastetofueland/orenergyandbioproducts;andforestrywastetofueland/orenergypotentiallyviaandcofiring.

• TechnologyArea4:EnhancementofExistingFacilitiesThisareafocusesonprojectsincorporatingrenewablegenerationtechnologyintoexistingrenewableenergyandefficientenergyfacilitiestosignificantlyenhanceperformanceorextendthelifetimeofthegeneratingasset.DOEanticipatesqualifyingprojectsmayinclude,butarenotlimitedto,thefollowing:incorporationofpowerproductionintocurrentlynon-powereddams;inclusionofvariablespeedpump-turbinesintoexistinghydrofacilities;andretrofittingexistingwindturbines.

• TechnologyArea5:EfficiencyImprovementsThisareafocusesonprojectsthatincorporateneworimprovedtechnologiestoincreaseefficiencyandsubstantiallyreducegreenhousegases.DOEanticipatesqualifyingprojectsmayinclude,butarenotlimitedto,thefollowing:improveorreduceenergyusageinresidential,institutional,andcommercialfacilities,buildings,and/orprocesses;recover,store,ordispatch


energyfromcurtailedorunderutilizedrenewableenergysources;recover,store,ordispatchwasteenergyfromthermal,mechanical,electrical,chemicalorhydro-processes;dispatch,control,orstabilizeintermittentpowertolargetransmissionlines,smartgirds,andmicrogrids.

EligibilityofDistributedEnergyProjectsDistributedEnergyProjectsarecurrentlydrivinginnovationandtransformingU.S.energymarkets.Unlikethelarge,centralizedpowerplantsthatLPOhasfinancedinthepast,DistributedEnergyProjectsarecomprisedofinstallationsoffacilitiesutilizingasingletechnology,oradefinedsuiteoftechnologies,atmultiplesites,deployedpursuanttoamasterbusinessplan.Demonstratingthemarketviabilityofinnovativetechnologiesinareassuchasgridinfrastructureandstorage,energy-efficientbuildingsandinstallations,anddistributedpowergenerationwouldcreateeconomicopportunity,strengthenenergysecurity,andreducegreenhousegasemissions.AswithothertypesofprojectsLPOhasfinanced,DistributedEnergyProjectsusinginnovativetechnologyfacemarketbarriersbecausecommerciallendersareoftenunwillingorunabletotakeontheriskofneworinnovativetechnologyorprojectstructuresuntiltheyhaveastronghistoryofcreditperformanceandcommercialoperation.TitleXVIIoftheEnergyPolicyActof2005addressesthecapitalconstraintsassociatedwithinnovativetechnologiesinordertoacceleratethedomesticdeploymentofsuchinnovativeenergytechnology.ManypotentialDistributedEnergyProjectapplicantsmaybereluctanttosubmitapplicationsunderLPO’ssolicitationsduetouncertaintyregardingaproject’seligibilityoruncertaintyaboutwhetherLPOwillaccepttheapplicant’sproposalforafinancingstructure.LPObelievesthatDistributedEnergyProjectscanbeeligibleprojectsunderitscurrentlyoutstandingsolicitations.However,DistributedEnergyProjectsrequirefinancialstructuresthataredifferentfrommostofthefinancingstructuresthatLPOhasusedinthepastforfinancinglarge,centralizedprojects.LPOsupplementeditsAdvancedFossilEnergyProjectsandRenewableEnergyandEfficientEnergyProjectssolicitationstoclarifythatitwillacceptandconsiderapplicationsforDistributedEnergyProjectsandtoshowhowsuchatransactionmightbestructured.LPOunderstandsthatotherprojectstructuresmayexistorbedeveloped,anditwillconsiderapplicationsforprojectsthatusethosestructures.HowtoApplyforaTitleXVIICleanEnergyProjectLoanGuaranteeTheTitleXVIIapplicationprocessisatwo-partprocess.EligibleapplicantsreceiveaninvitationtosubmitPartIIoftheirapplicationaftermeetingbasiceligibilityrequirementsreferredtoineachsolicitationinPartIoftheapplicationprocess.


FeesLPOisrequiredtocollectseveralfeesfromTitleXVIIloanprogramapplicants.Pleasenotethattheexactamountoffeeswillvarywitheachsolicitation.Toobtainmoredetailedinformationaboutfees,pleaserefertothesolicitations.Inaddition,eachapplicantisresponsibleforpayingthefeesandexpensesincurredbytheDepartment’sindependentconsultantsandoutsidelegalcounselinconnectionwithsuchapplicant’sproject.ApplicationFeeThisfeecoversthecostsassociatedwiththeDepartment’sfinancialandtechnicalreviewstodeterminewhichprojectswillbeselectedforduediligence.The$50,000applicationfeemustbepaidatthetimethePartIapplicationissubmitted.IfaprojectisinvitedtosubmitaPartIIapplication,itmustpaytheremainderoftheapplicationfeewhenitsubmitsthePartIIapplication.Forprojectsrequestingmorethan$150millioninloanguarantees,thePartIIapplicationfeeis$350,000.Forprojectsrequestinglessthan$150millioninloanguarantees,thePartIIapplicationfeeis$100,000.FacilityFeeThefacilityfeecoverstheDepartment’sadministrativecostsincurredinconnectionwithconsideringwhethertoissuealoanguaranteeandtoissuesuchloanguarantee,includingexpensessuchasthoseincurredinconnectionwithduediligence,negotiationanddocumentation.Thisfeeistypicallypaidinpartatconditionalcommitment,withthebalancedueuponissuanceoftheloanguarantee.MaintenanceFeeTheannualmaintenancefeecoverstheDepartment’sadministrativeexpenses,otherthanextraordinaryexpenses,inservicingandmonitoringtheloanguaranteeduringtheliftoftheloan.Thefeeispaideachyearinadvance,commencingwithpaymentofapro-ratedannualpaymentontheclosingdateoftheloanguarantee.CreditSubsidyCostThecreditsubsidycostisthenetpresentvalueoftheestimatedlong-termcosttotheU.S.governmentofaloanguaranteeasdeterminedundertheapplicableprovisionsoftheFederalCreditReformActof1990,asamended(FCRA).Section1702(b)ofTitleXVIIprovidesthatnoguaranteeshallbemadeunless:

(1)Anappropriationforthecostoftheguaranteehasbeenmade,(2)TheSecretaryhasreceivedfromtheapplicantapaymentinfullforthecostoftheguaranteeanddepositedthepaymentintotheTreasury,or(3)Acombinationofoneormoreappropriationsunder(1)andoneormorepaymentsfromtheapplicantunder(2)hasbeenmadethatissufficienttocoverthecostoftheguarantee.

FORMOREINFORMATION

MoreinformationaboutTitleXVII,opensolicitationsandtheapplicationprocesscanbefoundonlineat:www.energy.gov/lpo/title-xviiApplyonlineat:https://apply.loanprograms.energy.gov


DOELoanProgramsOfficeTitleXVIICaseStudy

TITLEXVIICASESTUDY:DesertSunlight

LPOhasprovidedfinancingfornumerousaward-winningcleanenergyprojects,includingDesertSunlight,a550-megawatt(MW)photovoltaic(PV)solarpowerplantlocatedinRiversideCounty,California,thatwasissuedpartialloanguaranteestotaling$1.5billion.LPOwascreatedbyCongresstoprovidefinancingforearlydeploymentsofcommercial-scale,innovative,cleanenergyprojectsbecausecommerciallendersareoftenunwillingtofullyfinancesuchprojects.Tobridgethisfinancinggap,LPOprovidedloanguaranteesforthefirstfivephotovoltaic(PV)solarprojectslargerthan100MWthatallowedprojectstobefinancedexclusivelythroughtheU.S.Treasury’sFederalFinancingBank.ForDesertSunlight,LPOworkedwithagroupof14commercialfinancialinstitutionsthroughtheFinancialInstitutionPartnershipProgram(FIPP)tojointlyfinancetheproject.Asrequiredbylaw,LPOstoppedissuingnewloanguaranteesundertheSection1705ProgramonSeptember30,2011,butisstillacceptingapplicationsundertheSection1703Program.However,theinitialinvestmentsmadebyLPOhelpedbuildamarketthatsubsequentlyfinancedatleast28additionalprojectslargerthan100MWwithouthelpfromtheDepartment.ManywerefinancedbythebanksthatgainedvaluableexperienceworkingwithLPOonDesertSunlight.Formoreinformation,see:www.energy.gov/lpo/desert-sunlight


DOELoanProgramsOfficeAdvancedTechnologyVehiclesManufacturing(ATVM)DirectLoanProgram

DESCRIPTION

TheATVMloanprogramhasmorethanapproximately$16billionavailableforloanstosupportthemanufactureofadvancedtechnologyvehiclesandqualifyingcomponents.Inorderforavehicletobeanadvancedtechnologyvehicle,thevehiclemustbea“light-duty”passengervehiclethatsatisfiesspecifiedemissionandfueleconomystandards,orisan“ultra-efficient”vehicle.Tobeaqualifyingcomponent,thecomponentmustbedesignedandinstalledforthepurposeofmeetingtheperformancerequirementsforanadvancedtechnologyvehicle.TheATVMdirectloanprogramwasestablishedinSection136oftheEnergyIndependenceandSecurityActof2007.


TobeeligibleforanATVMdirectloananapplicantmust:

• Beanautomotivemanufacturersatisfyingspecifiedfueleconomyrequirementsoramanufacturerofqualifyingcomponents.

• Befinanciallyviablewithoutthereceiptofadditionalfederalfundingfortheproposedproject.

TheproceedsofanATVMdirectloanmayonlybeusedtopayforATVMeligiblecostsaftersubstantialcompletionofanapplicationhasbeendetermined.ATVMeligiblecostsare:

• Coststhatarereasonablyrelatedtoreequipping,expanding,orestablishingmanufacturingfacilitiesintheUnitedStatestoproduceadvancedtechnologyvehiclesorqualifyingcomponents;and

• CostsofengineeringintegrationperformedintheUnitedStatesofadvancedtechnologyvehiclesorqualifyingcomponents.

EligibleprojectsmustbelocatedintheUnitedStates,buttheATVMprogramisopentobothforeignanddomesticmanufacturers.


http://www.energy.gov/sites/prod/files/2014/03/f11/hr6.pdf

InterestedapplicantsshouldreviewtheATVMeligibilityrequirementsandtheUpdatedGuidanceforApplicantstotheAdvancedTechnologyVehiclesManufacturingLoanProgram.PotentialapplicantsarealsoencouragedtoreviewtheATVMOverviewpresentationtolearnmoreaboutATVMdirectloansandtheapplicationprocess.Potentialapplicantsmay,butarenotrequiredto,consultATVMloanprogramstaffbyteleconferenceorinpersontodiscusspotentialapplicationspriortosubmission.HowtoApplySubstantiallycompleteapplicationmeetingallapplicableeligibilityrequirements.NopaymentoffeestotheDepartmentofEnergyisrequiredtoapplyforanATVMdirectloan;however,applicantsarerequiredtopaya0.1percentclosingfeeupto$100,000totheDepartmentontheclosingdateofanATVMdirectloan.

FORMOREINFORMATION

Moreinformationcanbefoundonlineat:www.energy.gov/lpo/atvmToscheduleaconsultation,pleaseemailtheATVMprogramofficeatatvmloan@hq.doe.govApplyonlineathttps://apply.loanprograms.energy.gov


http://energy.gov/lpo/atvm-project-eligibility

http://www.energy.gov/sites/prod/files/2015/02/f19/ATVM_Guidance_for_Applicants_11.4.14.pdf

http://www.energy.gov/sites/prod/files/2015/02/f19/ATVM_Program_Overview_2015.pdf

DOELoanProgramsOfficeATVMCaseStudy

ATVMCASESTUDY:Ford

InSeptember2009,theDepartmentofEnergyissueda$5.9billionloantotheFordMotorCompanytoupgrade13facilitiesinIllinois,Kentucky,Michigan,Missouri,NewYork,andOhio.Theresultingstate-of-the-artassemblyandmanufacturingplantshavetheenhancedflexibilityofproducingmultiple-platform,fuel-efficientadvancedtechnologyvehiclesinresponsetochangingmarketdemandsandfuelefficiencystandards.Fordupdatedseveralfactoriestocontinueimprovingfuelefficiencyinmorethanadozenpopularvehicles,includingtheEscape,Fiesta,Focus,Fusion,andTauruscarmodels,aswellastheF-150light-dutytruck.TheinnovationsincludethefamilyofFordEcoBoost™engines,whichareavailableinalmostallmodels,andintroductionsofnewhybrid,plug-inhybrid,andall-electricplug-invehicles.2015markedthefirsttimeFordhadsurpassedmorethan1millioninvehiclessoldwiththeEcoBoost™.Formoreinformation,see:www.energy.gov/lpo/ford


DOEEnergySavingsPerformanceContractsforFederalBuildings

DESCRIPTION

EnergySavingsPerformanceContracts(ESPCs)areaninnovativefinancingtechniquethatusecostsavingsfromreducedenergyconsumptiontorepaythecostofinstallingenergyconservationmeasures.NormallyofferedbyEnergyServiceCompanies(ESCOs),thisfinancingtechniqueallowsfederalbuildingstoachieveenergysavingswithoutrequiringup-frontcapitalexpenses.ThecostsoftheenergyimprovementsarebornebytheESCOandpaidbackoutofguaranteedenergysavings.Otheradvantagesincludetheabilitytouseasinglecontractortodonecessaryenergyauditsandretrofitandtoguaranteetheenergysavingsfromaselectedseriesofconservationmeasures.ESPCsforfederalbuildingscancreatelocaljobsanddriveworkforAmericanmanufacturersandtheirworkforces.


Installationofenergyconservationmeasuresonfederalbuildingsandfederalfacilitiesareeligible.

FORMOREINFORMATION

MoreinformationaboutESPCsforfederalbuildingsmaybefoundonlineat:http://www1.eere.energy.gov/femp/about/about.htmlProgramContactSchuyler“Skye”SchellU.S.DepartmentofEnergyPhone:(202)596-9015Email:[email protected]


• DebtFinancing

• PoliticalRiskInsurance

• SupportForPrivateEquityFunds

� OPICCaseStudy


OVERSEASPRIVATEINVESTMENTCORPORATION


OPICDebtFinancing

DESCRIPTION

OPICoffersdirectloansandguaranteesofupto$250millionfortenorsaslongas20yearswithspecificprogramstargetingsmallandmediumU.S.businesses.Bycomplementingtheprivatesector,OPICcanprovidefinancingincountrieswhereconventionalfinancialinstitutionsoftenarereluctantorunabletolend.


OPICmaintainsachecklisttohelpprojectsponsorsdeterminewhethertheyareeligibleforOPICfinancialproductsat:https://www.opic.gov/what-we-offer/financial-products/eligibility

FORMOREINFORMATION

ProgramContactNadiaRhaziProgramManager;[email protected]


OPICPoliticalRiskInsurance

DESCRIPTION

OPICofferscoverageofupto$250millionagainstlossesduetocurrencyinconvertibility,expropriation,regulatoryrisk,politicalviolence,andbreachofcontract.Thepoliticalriskinsurancealsooffersreinsurancecapabilities.


PoliticalriskinsuranceisavailabletoU.S.investors,lenders,contractors,exporters,andNGOsforinvestmentsin150developingcountries,includinghigh-riskcountriessuchastheDemocraticRepublicofCongo,Iraq,Afghanistan,andPakistan.Coverageisofferedforsmallandlargeinvestmentsthatprovidepositivedevelopmentalbenefits.

FORMOREINFORMATION

ProgramContactRuthAnnNicastriManagingDirector,PoliticalRiskInsuranceStructuredFinanceandInsuranceDepartmentRuthAnn.Nicastri@opic.gov


OPICSupportForPrivateEquityFunds

DESCRIPTION

OPICoffersdebtfinancingforemergingmarketprivateequityfundsselectedthroughanopenandcompetitiveprocess.


OPICinitiatesthefundmanagerselectionprocessonlythroughthepublicationofacallforproposals(the“Call”)inprivateequitytradejournalsandonOPIC’swebsite.Then,aselectioncommittee,comprisedofaninternalOPICteamandanindependentprivateequityconsultant,conductsextensivemanagerevaluations.Allapplicationsthatmeetthepublishedselectioncriteriawillbeconsidered.Generally,theevaluationofprospectivefundmanagersisbasedonthefollowingcriteria:

• Theviabilityandthoughtfulnessoftheproposal;• Therelevanttrackrecordoftheprospectivemanagementteam;• Thecohesivenessofthemanagementteam,anditsexperience

managingthird-partycapital;and,• Theabilityofthemanagertoraisesufficientequitycapitaltosupport

theinvestmentthesis.FORMOREINFORMATION

ProgramContactWilliamPearceManagingDirector,[email protected]


OPICCaseStudy

OPICCASESTUDY:CaribbeanEnergySecurityInitiative

FortheCaribbean,energysecurityisamajorchallenge.Theregionislargelydependentonimportedfuelforelectricitygeneration,whichdivertsresourcesawayfromeconomicdevelopment.Since2014,whentheU.S.launchedtheCaribbeanEnergySecurityInitiative(CESI),OPIChasbeenoneoftheU.S.agencieshelpingtotransformtheregion’selectricitysector.OPICisdedicatingresourcestofinanceprojectsthatwillintroducemorehome-grownrenewableenergyandsustainablecleantechnologies.Jamaicahasbeenoneoftheregionalleadersintransitioningtocleanersourcesofelectricitygeneration,andOPICdebtfinancingandinsurancehaveplayedapartinhelpingJamaicaachievethatgoal.Specifically,OPICisprovidingsupporttoa20MWsolarfacility,whichwillbeoneofthelargestsolarplantsintheCaribbean.Inaddition,OPICissupportinga36MWwindfarm,whichwillbeJamaica’slargestprivatesectorrenewableenergyproject.Thesefacilitiesalonewillaccountforaboutsevenpercentofthecountry’sgeneratingcapacity.


• DevelopmentCreditAuthority

• DevelopmentInnovationVentures


UNITEDSTATESAGENCYFORINTERNATIONALDEVELOPMENT


USAIDDevelopmentCreditAuthority

DESCRIPTION

USAIDprovidesforeignassistancetosupportshareddevelopmentobjectives.USAIDimplementsDevelopmentCreditAuthority(DCA)guarantees.DCApartialcreditguaranteeisdesignedto:

• Reduceriskstogenerateadditionallendingtounderservedmarketsandsectors;and

• Demonstratethelong-termcommercialviabilityoflendingindevelopingmarkets.

TheDCAportfoliofrom1999through2015hassupportedmorethan$4.2billionincreditmadeavailablein74countries.


GeneralFeaturesInclude:

• GuaranteebackedbythefullfaithandcreditoftheU.S.Treasury• Typicallya50percentparipassuguaranteeonloanprincipal(notfees

orinterest)• Sharerecoveriespro-ratawithUSAIDnetofreasonabledocumented

expensesactuallyincurred• Guaranteeofnon-sovereigndebtcapital• Guaranteeondisbursements,typicallyusedfortermloans• Flexibilitytoguaranteelocaland/orforeigncurrency• Guaranteeloanmaturitiesofupto20years• LoansregisteredonlineinasimpleInternet-basedCreditManagement

System• Pre-approvalnotrequiredforindividualloansplacedunderloan

portfolioguarantees• GuaranteesmaybepairedwithUSAIDorothertechnicalassistance

projectsthatcan:

o Strengthentheborrower’sabilitytorepayo Supportthefinancialinstitution’slendingcapacityinanewsector


StandardTermsInclude:

• Guaranteeofrealizedlosses,requiringthefollowingclaimprocedures:o Wait90daysafterthefinalletterofdemandissenttothe

borrowero Certifythatreasonablecollectioneffortshavebeenpursuedo Writeofftheloanortakeaminimum20percentprovisionifa

legalimpedimentexiststowritingofftheloan

• Feestoachievedevelopmentimpact:o Originationfee:Aone-time,up-frontfeebasedonthefacilitysizeo Utilizationfee:Asemi-annualfeebasedonthevalueofloans

placedundertheguarantee

StandardDCAguaranteeproductsinclude:

• LoanGuarantee• LoanPortfolioGuarantee• PortableGuarantee• BondGuarantee

FORMOREINFORMATION

ProgramContactAndrewGisselquistUSAIDDevelopmentCreditAuthority202-712-5910www.usaid.gov/dca


USAIDDevelopmentInnovationVentures

DESCRIPTION

DevelopmentInnovationVentures(DIV)isanopencompetitionsupportingbreakthroughsolutionstodevelopmentchallengesaroundtheworld.USAIDlooksforinterventionsthatcouldchangemillionsoflivesatafractionoftheusualcost.


HowDIVWorks:

• ThepowerofopeninnovationUSAIDbelievesthattransformativedevelopmentsolutionscancomefromanyone,anywhereintheworld,soweholdayear-round,opencallforideas.DIVsupportsinterventionsinanysectorandinnearlyanycountry.

• HarnessingyourideasThecompetitionisopenyear-round.ApplywithyourideasbysubmittingashortLetterofInterestsummarizingyoursolution.IftheproposalmeetsourselectioncriteriaandtheDIVpillarsofcost-effectiveness,evidence,andscale,wewillaskyoutosubmitaFullApplicationforfinalselection.

• WhatcanbedonetogetherUSAIDawardsgrantfinancingtowinnersinthreedistinctstagesoffinancing.Fundingrangesfromunder$100,000to$15million,andisbasedonwhereaprojectisinitsdevelopmentandtowhatextentyouhavepreviouslygatheredevidenceofsuccess.Thegoalistoworktogetherinordertomaximizeimpacts,lowercosts,andbringsuccessfulsolutionstoscale.

Criteria:

• Cost-EffectivenessDIVseekssolutionswiththepotentialtodelivermoreimpactsperdollarthantraditionalalternatives.

• RigorousTestingDIVemphasizesassessmentofsocialimpactstoevaluatewhatisworking,ortofindoutwhatisnot.


• PathwaystoScaleDIVexpectssolutionstogrowviatheprivateorpublicsectorwithoutlong-termDIVsupport

TheDIVportfolioincludesmorethaninvestmentsmadetodate,toawardeesinorganizationsincludingNGOs,academicinstitutions,andcompaniesandsocialenterprises.Sectorssupportedtodateinclude:

• DemocracyandGovernance• EconomicGrowthandTrade• Energy• GlobalHealth• AgricultureandFoodSecurity• EducationandTraining• Environment• Water,Sanitation,andHygiene

FORMOREINFORMATION

www.usaid.gov/div


• EnvironmentalQualityIncentivesProgram• Multi-FamilyHousingEnergyEfficiencyInitiative• RepoweringAssistanceProgram• RuralDevelopmentBioenergyProgramforAdvanced

BiofuelsPaymentProgram• RuralDevelopmentBiorefinery,RenewableChemical,

andBiobasedProductManufacturingAssistanceProgram

• RuralDevelopmentLoan&GrantAssistance(SeveralPrograms)

• RuralEnergyforAmericaProgram• TheRuralUtilitiesService:ElectricLoanProgram• TheRuralUtilitiesService:EnergyEfficiency&

ConservationLoanProgram• TheRuralUtilitiesService:HighEnergyCostGrant

Program• TheRuralUtilitiesService:RuralEnergySavings

Program� AdditionalUSDALocalImplementation

Information


UNITEDSTATESDEPARTMENTOFAGRICULTURE


USDAEnvironmentalQualityIncentivesProgram

DESCRIPTION

TheNaturalResourcesConservationService(NRCS)providesdirectfinancialassistancepaymentsthroughtheEnvironmentalQualityIncentivesProgram(EQIP)toagriculturalproducersforinstallationofconservationpracticesthatresultindefinedenvironmentalbenefits.EQIPalsoincludestechnicalassistancetohelpproducerswithdetailedplanning,design,andinstallationoversightforapprovedconservationpractices.

ELIGIBLEACTIVITIESANDINVESTMENTSFinancialassistantpaymentsareavailablethroughEQIPcontractstoaddressenergyefficiencyfor:

• Farm-specificanalysisofenergyconsumption,whichisrequiredasabaselineforrecommendationsofenergyefficiencypractices.Thisanalysis,alsoknownasanenergyaudit,maybedevelopedwithoutEQIPassistance,butmustmeettheAmericanNationalStandardsInstitute(ANSI)/AmericanSocietyofAgriculturalandBiologicalEngineers(ASABE)standardforType2energyauditsasabasisforEQIPfinancialassistanceforimplementationofrecommendationsintheenergyaudit;

• Recommendationsmadeinqualifyingenergyauditsforpracticesthat

haveapotentialtodecreasefuelconsumptionorpurchasedelectricitybyinstallingimprovementstobuildingheating,cooling,andventilationsystems,andbyreplacingequipmentsuchasmotors,pumps,orlightingtoimproveefficiency;and,

• Improvementsofcontrolofsystemsusingtimers,sensors,andvariablespeeddrivesasrecommendedinaqualifiedenergyaudit.

NRCSacceptsandprocessesEQIPapplicationsonacontinuousbasis;however,eachstatemayestablishdeadlinesforoneormoreapplicationperiodsinwhichtoconsidereligibleapplicationsforfunding.Producersmustsubmitacompleteprogramapplication,establishfarmrecords,andotherdocumentationtosupporteligibilitytobeconsideredforfinancialassistancethroughEQIP.


FORMOREINFORMATIONInformationcanbefoundonlineat:http://www.nrcs.usda.gov/wps/portal/nrcs/main/national/programs/financial/eqipforEQIP,andhttp://www.nrcs.usda.gov/wps/portal/nrcs/detail/national/programs/financial/eqip/?cid=stelprdb1046252fortheEQIPNationalOn-FarmEnergyInitiative.MoreisassistanceisavailableforindividualsfromNRCSFieldOfficesthroughoutthecountry.TolocatethenearestNRCSoffice,seetheUSDALocalServiceCentersDirectoryat:http://www.nrcs.usda.gov/wps/portal/nrcs/main/national/contact/localProgramContactMarkA.RoseDirector,FAPDUSDANRCSPhone:202-720-1844Email:[email protected]


USDAMulti-FamilyHousingEnergyEfficiencyInitiative

DESCRIPTION

TheMulti-FamilyHousingEnergyEfficiencyInitiativeenablesSection515RuralRentalHousingProgramforNewConstruction,Section514FarmLaborHousingLoansandSection516FarmLaborHousingGrantsforOff-FarmHousing,Section522HousingPreservationGrants,andSections514,515and516Multi-FamilyHousingRevitalizationDemonstrationProgramapplicantstohelptheenvironmentandincreasetheireligibilityforfundingbyincorporatingenergyefficiencypracticesintoprojectdesigns,construction,andoperations.ThegoaloftheMulti-FamilyHousingEnergyEfficiencyInitiativeistopromotedevelopmentprojectsthatrequireareducedquantityofenergytooperate,useenergysourcesthatdonotproducegreenhousegasesandthathavelittleornonetemissionofgreenhousegases,andareeconomicallyviable.Pointsareavailabletoapplicantswhoseekthird-partyenergyefficiencycertifications,useenergyefficientbuildingmaterialsanddesignstrategies,generateenergyonsite,andmakeacommitmenttoenergyefficientpost-constructionoperationandmaintenance.

ELIGIBLEACTIVITIESANDINVESTMENTSThethreeareasoffocusfortheEnergyEfficiencyInitiativeareenergyconservation,energygeneration,andgreenpropertymanagement.Note:PleaseseethemostcurrentNoticeofFundsAvailability(NOFA)foradetailedreviewofapplicationandprojectrequirements.EnergyConservationForenergyconservation,theMulti-FamilyHousingEnergyEfficiencyInitiativeawardspointsforbothnewconstructionandrehabilitationprojectstoparticipateinenergyefficiencyprogramsandstandardscertifications.Thougheachoftheprogramslistedbelowisdifferent,somesharecommonfeatures,whichmaymakeiteasiertoobtainmultiplecertifications.Pointsareawardedforeachcertificationobtained,althoughnotallcertificationsareacceptedbyallUSDA-RDprograms.Participationinqualifiedlocalandregionalprogramsandcertificationsmayalsoearnpoints.Itisimportanttonotethatcertainprogramshavemultiplelevelsofcertificationandthatadditionalpointsareawardedforreachinghigherlevels.Thefollowingarethecurrentavailablecertificationprogramsforenergyconservation:


• TheEnvironmentalProtectionAgency'sEnergyStarforHomes

program;• TheEnterpriseCommunityPartners'GreenCommunitiesprogram;• TheUnitedStatesGreenBuildingCouncil'sLEEDforHomesprogram;• HomeInnovation's-NationalGreenBuildingStandard™;and,• DepartmentofEnergy'sZeroEnergyReadyHomeprogram.

Note:PleaseseetheindividualUSDA-RDprogramNOFAsfordetailsonwhichcertificationsarepermissibleforyourproject.EnergyGenerationInadditiontoparticipatinginstandardscertificationsandenergyefficiencyprograms,theMulti-FamilyHousingEnergyEfficiencyInitiativeencouragesdeveloperstogenerateenergyon-sitebyutilizingtechnologytolessentheirproperties'needforoutsideenergysources.DoingsowillearnadditionalNOFApointsandincreaseaproject'sviabilityregardingUSDA-RDprogramfunding.Energygenerationcanbeaccomplishedusingtechnologiesincluding,butnotlimitedto:windturbines,micro-turbines,micro-hydropower,photovolactics(capableofproducingavoltagewhenexposedtoradiantenergy,especiallylight),solarhotwatersystems,biomass/biofuelsystemsthatdonotusefossilfuelsinproduction,andgeo-exchangesystems.Developersmustuseindustryrecognizedsimulationsoftwarewhenestimatingenergyconsumptionandgenerationforpreliminarybuildingdesigns.TheymustalsothensubmitareportoffindingsbasedonthesimulationswiththeirUSDA-RDprogramapplications.USDA-RDrecognizesthatzero-netenergyconsumptionisachallengetodevelopersandbuildersalikeandnotallapplicantswillreachthisgoal.Projectswillreceivepointsforpartialenergygenerationoftenpercentormore.Pointsreceivedmayincreasewithhigherpercentagesofenergygeneration,wheregenerationisconsideredtobethetotalamountofenergyneededon-sitetomakethebuildingazero-netenergyconsumerofenergy.Inotherwords,thebuildingrequiresnomoreenergythanitproduces.In2014,pointswereaddedforachievingasmallpercentageofoff-gridenergygenerationaswell.GreenPropertyManagementUSDA-RDbelievesitisimportanttofocusonenergyefficiencyevenafterconstructioniscomplete.Responsiblepost-constructionoperationandmaintenanceisadutyforeveryenvironmentallysoundproperty.Forthisreason,allapplicationswillreceiveadditionalpointsifthedesignatedpropertymanagementcompanyorindividualsthatwillassumeoperationsandmaintenanceobligationshaveaCredentialforGreenPropertyManagement.Credentialingcanbeobtainedfromanyofthefollowingorganizations:

• NationalApartmentAssociation(NAA);• NationalAffordableHousingManagementAssociation;• TheInstituteforRealEstateManagement;and,• USGreenBuildingCouncil'sLeadershipinEnergyandEnvironmental

DesignforOperationsandMaintenance(LEEDOM).


TheCredentialforGreenPropertyManagementcanbeobtainedfromotherorganizationswithcertifiablecredentialingprograms.Tobeconsidered,allcredentialsmustbeillustratedintheapplicationintheresumes/biographiesofthepropertymanagementteam.

FORMOREINFORMATIONMoreinformationcanbefoundonlineat:http://www.rd.usda.gov/programs-services/all-programsProgramContactMeghanWalsh,ArchitectUSDARuralHousingServicePhone:(202)205-0903Email:[email protected]


USDARepoweringAssistanceProgram

DESCRIPTION

Thisprogramprovidespaymentstoeligiblebiorefineriestoencouragetheuseofrenewablebiomassasareplacementfuelsourceforfossilfuelsusedtoprovideprocessheatorpowerintheoperationofeligiblebiorefineries.

ELIGIBLEACTIVITIESANDINVESTMENTSThepurposeofthisprogramistoprovidefinancialincentivestobiorefineriesinexistenceonJune18,2008,thedateoftheenactmentoftheFood,Conservation,andEnergyActof2008(the2008FarmBill)(Pub.L.110-246),toreplacetheuseoffossilfuelsusedtoproduceheatorpowerattheirfacilitiesbyinstallingnewsystemsthatuserenewablebiomass,ortoproducenewenergyfromrenewablebiomass.Theprogramencouragestheuseofrenewablebiomassasareplacementfuelsourceforfossilfuelsusedtoprovideprocessheatorpowerintheoperationofeligiblebiorefineries.Theamountofassistanceisdeterminedbytheavailabilityoffunds,theprojectscope,andtheabilityoftheproposedprojecttomeetallthescoringcriteria.Inparticular,thepercentagereductioninfossilfuelusedbythebiorefinery,thequantityoffossilfuelsreplacedbyarenewablebiomasssystem,andthecosteffectivenessoftherenewablebiomasssystemdeterminestheamountofassistance.Paymentsaremadeforeligiblepost-applicationcostsincurredduringtheconstructionphaseoftherepoweringproject.EligiblebiorefineriesarethosethatwereinexistencepriortoJune18,2008.Biorefineriesmustinstallnewsystemsthatuserenewablebiomasstoproduceheatandpowerforplantoperationsandreplacetheuseoffossilfuels.Tobeeligibletoreceiveapaymentunderthissection,abiorefineryshalldemonstratethattherenewablebiomasssystemofthebiorefineryisfeasiblebasedonanindependentfeasibilitystudythattakesintoaccounttheeconomic,technical,andenvironmentalaspectsofthesystem.

FORMOREINFORMATIONMoreinformationcanbefoundonlineat:http://www.rd.usda.gov/programs-services/repowering-assistance-program


YoumayalsocontactyourstateRuralEnergyCoordinator:http://www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdfProgramContactMarkBrodziski,Director,EnergyDivisionUSDARuralDevelopmentPhone:(202)205-0903Email:[email protected]


USDARuralDevelopmentBioenergyProgramforAdvancedBiofuelsPaymentProgram

DESCRIPTION

TheAdvancedBiofuelPaymentProgramprovidespaymentstoproducerstosupportandexpandproductionofadvancedbiofuelsrefinedfromsourcesotherthancornkernelstarch.Theprogramsupportsandhelpstoensuretheexpandingproductionofadvancedbiofuelsbyprovidingpaymentstoeligibleadvancedbiofuelproducers.Additionalincentivepaymentsmaybemadetocertainproducerswhohaveincreasedtheirbiofueloutputoverthepreviousyear’sproduction.Advancedbiofuelsareproducedfromrenewablebiomasscropssuchascellulose,sugarandstarch(otherthanethanolderivedfromcornkernelstarch),hemicelluloses,lignin,wastematerials,biogas,butanol,diesel-equivalentfuel,sugarcane,andnonfoodcropssuchaspoplartreesorswitchgrass.Assistancepaymentsaredeterminedbythenumberofeligibleparticipantsandtheamountofprogramfundingtobedistributedamongapoolofadvancedbiofuelproducers(eligibleparticipants)foragivenperiodoftime.

ELIGIBLEACTIVITIESANDINVESTMENTSTobeeligiblefortheAdvancedBiofuelPaymentProgram,anapplicantmustproduceandsellanadvancedbiofuel.Conditionsneedtobemetfortheproducerandthebiofuel.AnAdvancedBiofuelProducerisanindividual,corporation,company,foundation,association,labororganization,firm,partnership,society,jointstockcompany,groupoforganizations,ornon-profitentitythatproducesandsellsanadvancedbiofuel.Advancedbiofuelisafuelderivedfromrenewablebiomass,otherthancornkernelstarch.Anadvancedbiofuelproductmustmeeteachofthefollowingconditionstoqualifyforthisprogram:mustmeetthedefinitionofadvancedbiofuelandbeproducedintheUnitedStates;mustbeasolid,liquid,orgas;mustbeafinalproduct;andmustbesoldasanadvancedbiofuelthroughanarm’slengthtransactiontoathirdparty.


FORMOREINFORMATIONMoreinformationcanbefoundonlineat:http://www.rd.usda.gov/programs-services/advanced-biofuel-payment-programYoumayalsocontactyourstateRuralEnergyCoordinator:http://www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdfProgramContactMarkBrodziski,Director,EnergyDivisionUSDARuralDevelopmentPhone:(202)205-0903Email:[email protected]


USDARuralDevelopmentBiorefinery,RenewableChemical,andBiobasedProductManufacturingAssistanceProgram

DESCRIPTION

TheBiorefinery,RenewableChemical,andBiobasedProductManufacturingAssistanceProgramwasestablishedtoassistinthedevelopmentofnewandemergingtechnologiesforthedevelopmentofadvancedbiofuels.The2014FarmBillexpandedtheprogramtoincluderenewablechemicalandbiobasedproductmanufacturing.Theprogramprovidesloanguaranteesupto$250millionforthedevelopment,construction,andretrofittingofcommercial-scalebiorefineriesandbiobasedproductmanufacturingfacilities.

ELIGIBLEACTIVITIESANDINVESTMENTSEligibleprojectsmustmeetthefollowingcriteria:

• Theprojectmustbeforthedevelopmentandconstructionofcommercial-scalebiorefineriesusingeligibletechnologyorretrofittingofexistingfacilitieswitheligibletechnologyorthedevelopment,construction,andretrofittingoftechnologicallynewcommercial-scaleprocessingandmanufacturingequipmentandrequiredfacilitiesthatwillbeusedtoconvertrenewablechemicalsandotherbiobasedoutputsofbiorefineriesintoend-userproductsonacommercialscale;

• Biorefineryprojectsmustuseaneligiblefeedstockfortheproductionofadvancedbiofuels,renewablechemical,orbiobasedproducts(examplesofeligiblefeedstocksinclude,butarenotlimitedto,renewablebiomass,andbiosolids);

• Theprojectmustprovidecashfundsofnotlessthan20percentofeligibleprojectcosts;and,

• Refinancing,undercertaincircumstances,maybeeligible.

ApplicationsApplicationsmustbesubmittedthroughagency-approvedlendersandconformtotheapplicationrequirementspublishedintheannualNotificationofFundingAvailability.


FORMOREINFORMATIONhttp://www.rd.usda.gov/programs-services/biorefinery-renewable-chemicaland-biobased-product-manufacturing-assistanceProgramContactMarkBrodziski,Director,EnergyDivisionUSDARuralDevelopmentPhone:(202)205-0903Email:[email protected]


USDARuralDevelopmentLoan&GrantAssistance(SeveralPrograms)

DESCRIPTION

Programassistanceisprovidedinmanyways,includingdirectorguaranteedloans,grantsandtechnicalassistance.BusinessLoanAssistance:

BusinessandIndustryLoanGuarantee(B&I)ProgramThepurposeoftheB&IGuaranteedLoanProgramistoimprove,develop,orfinancebusiness,industry,andemploymentandimprovetheeconomicandenvironmentalclimateinruralcommunities.Thispurposeisachievedbybolsteringtheexistingprivatecreditstructurethroughtheguaranteeofqualityloanswhichwillprovidelastingcommunitybenefits.Itisnotintendedthattheguaranteeauthoritywillbeusedformarginalorsubstandardloansorforreliefoflendershavingsuchloans.Loanpurposesmustbeconsistentwiththegeneralpurposecontainedintheregulation.Theyincludebutarenotlimitedtothefollowing:businessandindustrialacquisitionswhentheloanwillkeepthebusinessfromclosing,preventthelossofemploymentopportunities,orprovideexpandedjobopportunities;businessconversion,enlargement,repair,modernization,ordevelopment;purchaseanddevelopmentofland,easements,rights-of-way,buildings,orfacilities;andpurchaseofequipment,leaseholdimprovements,machinery,supplies,orinventory.Eligibleactivitiescanbeawardedupto$25million.B&IloanguaranteesmaybecombinedwithRuralEnergyforAmericaProgramloanguarantees(seepage56).SBAloanguarantees7(a)and504mayalsobecombinedwithB&IandREAPloanguarantees.

HousingandCommunityFacilitiesLoanAssistance:

RuralHousingGuaranteedLoanApplicantsforRuralHousingGuaranteedLoansmayhaveanincomeofupto115percentofthemedianincomeforthearea.Familiesmustbewithoutadequatehousing,butbeabletoaffordthemortgagepayments,includingtaxesandinsurance.Inaddition,applicantsmusthavereasonablecredithistories.


RuralHousingDirectLoanSection502RuralHousingDirectLoansareprimarilyusedtohelplow-incomeindividualsorhouseholdspurchasehomesinruralareas.Fundscanbeusedtobuild,repair,renovateorrelocateahome,ortopurchaseandpreparesites,includingprovidingwaterandsewagefacilities.SingleFamilyHousingSection502DirectLoansofferanincentivetoborrowersoftwopointsonfrontandbackendloanqualificationratiosforcompliancewithanyofthefivenationallyrecognizedmeasurementandverificationsystemsofgreen,energy-efficienthomes:

• TheEnvironmentalProtectionAgency'sEnergyStarforHomesprogram;

• TheEnterpriseCommunityPartners'GreenCommunitiesprogram;

• TheUnitedStatesGreenBuildingCouncil'sLEEDforHomesprogram;

• HomeInnovation's-NationalGreenBuildingStandard™;and,• DepartmentofEnergy'sZeroEnergyReadyHomeprogram.

RuralRepairandRehabilitationLoansTheVeryLow-IncomeHousingRepairprogramprovidesloansandgrantstoverylow-incomehomeownerstorepair,improve,ormodernizetheirdwellingsortoremovehealthandsafetyhazards.RuralRentalHousingTheRuralRentalHousingprogramisadaptableforparticipationbyawidevarietyofowners.Loanscanbemadetoindividuals,trusts,associations,partnerships,limitedpartnerships,stateorlocalpublicagencies,consumercooperatives,andprofitornon-profitcorporations.Individuals,partnerships,limitedpartnerships,for-profitcorporations,non-profitorganizations,limitedequitycooperatives,NativeAmericantribes,andpublicagenciesareeligibletoapply.For-profitborrowersmustagreetooperateonalimited-profitbasis(currentlyeightpercentoninitialinvestment).Borrowersmustbeunabletoobtaincreditelsewherethatwillallowthemtochargerentsaffordabletolow-andmoderate-incometenants.CommunityFacilitiesLoanProgramDesignatedCommunityProgramscanmakeandguaranteeloanstodevelopessentialcommunityfacilitiesinruralareasandtownsofupto20,000inpopulation.Loansandloanguaranteesareavailabletopublicentitiessuchasmunicipalities,counties,andspecial-purposedistricts,aswellastonon-profitcorporationsandtribalgovernments.

UtilitiesLoanAssistance:

ElectricLoanandLoanGuaranteeProgramSeepage58formoreinformationontheRuralUtilitiesServiceElectricLoanandLoanGuaranteeProgram.


WaterandWasteDisposalDirectLoansandGrantsThepurposeoftheWaterandWasteDisposalDirectLoansandGrantsProgramistodevelopwaterandwastedisposalsystemsinruralareasandtownswithapopulationnotinexcessof10,000.Thefundsareavailabletopublicbodies,non-profitcorporations,andIndiantribes.Toqualify,applicantsmustbeunabletoobtainthefinancingfromothersourcesatratesandtermstheycanaffordand/ortheirownresources.Fundscanbeusedforconstruction,landacquisition,legalfees,engineeringfees,capitalizedinterest,equipment,initialoperationandmaintenancecosts,projectcontingencies,andanyothercostthatisdeterminedbytheRuralDevelopmenttobenecessaryforthecompletionoftheproject.Projectsmustbeprimarilyforthebenefitofruralusers.WaterandWasteDisposalGuaranteedLoansThepurposeoftheWaterandWasteDisposalGuaranteedLoanProgramistoprovideloanguaranteesfortheconstructionorimprovementofwaterandwastedisposalprojectsservingthefinanciallyneedycommunitiesinruralareas.Thispurposeisachievedthroughbolsteringtheexistingprivatecreditstructurethroughtheguaranteeofqualityloanswhichwillprovidelastingbenefits.Thewaterandwastedisposalguaranteeloansaretoserveapopulationnotinexcessof10,000inruralareas.Guaranteedloansaremadeandservicedbylenderssuchasbanks,savingsandloanassociations,mortgagecompanies,andothereligiblelendersundertheGuaranteeLoanProgram.Thesefundsareavailabletobeusedbypublicbodies,non-profitcorporations,andIndiantribes.Toqualify,applicantsmustbeunabletoobtaintherequiredcreditwithouttheloanguaranteefromprivate,commercial,orcooperativesourcesatreasonableratesandterms.Eachborrowermusthaveorwillobtainthelegalauthoritynecessarytoconstruct,operateandmaintaintheproposedfacilityandservices.Thefacilitiesmustbelocatedinaruralarea.Allfacilitiesfinancedunderthisprovisionshallbeforpublicpurposes.Guaranteedloansmaybemadeincombinationwithdirectloans.

FORMOREINFORMATION

MoreinformationaboutRuralDevelopment’sLoanAssistancecanbefoundonlineat:http://www.rd.usda.gov/programs-services/all-programsMoreinformationabouttheBusinessandIndustryLoanGuarantee(B&I)Programcanbefoundonlineat:http://www.rd.usda.gov/programs-services/business-industry-loan-guaranteesSeetheAdditionalUSDALocalImplementationInformationsectiononpage64forRuralDevelopmentBusinessProgramsDirectorsList.


ForBusinessLoanAssistance:JohnBroussard,Director,BusinessandIndustryDivisionUSDARuralDevelopmentPhone:(202)690-4103Email:John.Broussard@wdc.usda.govForHousingandCommunityFacilitiesLoanAssistance:MeghanWalsh,ArchitectUSDARuralHousingServicePhone:(202)205-0903Email:[email protected]:JonClaffeyUSDARuralDevelopmentPhone:(202)720-1900Email:[email protected]


USDARuralEnergyforAmericaProgram

DESCRIPTION

TheRuralEnergyforAmericaProgram(REAP)providesassistancetoagriculturalproducersandruralsmallbusinessestocompleteavarietyofprojects.Offeringbothloanguaranteesandgrants,theREAPprogramhelpseligibleapplicantsinstallrenewableenergysystems,suchassolarpanelsoranaerobicdigesters;makeenergyefficiencyimprovements,suchasreplacingirrigationpumpsorventilationsystems;andconductenergyauditsandfeasibilitystudies.REAPiscomprisedofthefollowingcomponents:

• TheRenewableEnergySystemandEnergyEfficiencyImprovementGuaranteedLoanandGrantProgramprovidesfinancialassistancetoagriculturalproducersandruralsmallbusinessestopurchase,install,andconstructrenewableenergysystems;makeenergyefficiencyimprovements;anduserenewabletechnologiesthatreduceenergyconsumption.

• TheEnergyAuditandRenewableEnergyDevelopmentAssistanceGrantProgramprovidesgrantassistancetoentitiesthatwillassistagricultureproducersandsmallruralbusinessesbyconductingenergyauditsandprovidinginformationonrenewableenergydevelopmentassistance.

ELIGIBLEACTIVITIESANDINVESTMENTSGuaranteedloanandgranteligibilityislimitedtoruralsmallbusinessesandagriculturalproducers.Anagriculturalproducerisanindividualorentitydirectlyengagedintheproductionofagriculturalproducts(crops,livestock,forestryproducts,hydroponics,nursery,andaquaculture)whereby50percentorgreateroftheirgrossincomeisderivedfromtheoperations.AprivateentityisconsideredasmallbusinessinaccordancewiththeSmallBusinessAdministration’sSmallBusinessSizeStandards.Thelendermustbeeligiblefortheprogram.Lendersincludefederalandstate-charteredbanks,FarmCreditSystembanks,andsavingsandloanassociations.OtherlendersmaybeeligibleifapprovedbyUSDA.


Forbothloanguaranteesandgrants,projectsmustmeetthefollowingconditions:

• Theloan/grantmustgotowardsthepurchaseofarenewableenergysystemortomakeenergyefficiencyimprovements;

• Thetechnologymustbecommerciallyavailableandreplicable;• Theprojectmusthavetechnicalmerit,asspecifiedinRural

DevelopmentRegulation4280subpartB;• Aruralsmallbusinessmustbelocatedinaruralarea,thoughan

agricultureproducermaybelocatedinaruralornon-ruralarea;• Theapplicantmustbetheowneroftheprojectandcontrolthe

revenues,expenses,operations,andmaintenanceoftheproject;• Sitesmustbecontrolledbytheagriculturalproducerorsmallbusiness

forthefinancingtermofanyassociatedfederalloansorloanguarantees;and,

• Theprojectmusthavesatisfactorysourcesofrevenueforthelifeoftheprojectthatwillbeusedfortheoperation,management,maintenance,anddebtservice.

FORMOREINFORMATIONMoreinformationcanbefoundonlineat:http://www.rd.usda.gov/programs-services/rural-energy-america-program-renewable-energy-systems-energy-efficiencyYoumayalsocontactyourstateRuralEnergyCoordinator:http://www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdfProgramContactMarkBrodziski,Director,EnergyDivisionUSDARuralDevelopmentPhone:(202)205-0903Email:[email protected]


USDATheRuralUtilitiesService:ElectricLoanProgram

DESCRIPTION

TheRuralUtilitiesService(RUS)ElectricLoanProgramprovidesleadershipandcapitaltoupgrade,expand,maintain,andreplaceAmerica'svastruralelectricinfrastructure.UndertheauthorityoftheRuralElectrificationActof1936,theelectricprogramsmakedirectloansandloanguaranteestoelectricutilitiestoservecustomersinruralareas.Throughtheelectricprograms,thefederalgovernmentisthemajoritynoteholderforover600electricsystemsborrowersin46states,servingmorethan40millioncustomers.TheElectricLoanProgramoffersfinancingassistancethroughFederalFinancingBank(FFB)GuaranteedLoans.Theprimarydifferencesbetweentheprogramsarethequalifyingcriteriaandtheinterestrateforeachtypeoffinancing.CurrentinterestratesfortheseloanprogramsmaybefoundontheRatespage:http://www.rurdev.usda.gov/UEP_Rates.html

ELIGIBLEACTIVITIESANDINVESTMENTSLoansaremadetocorporations,states,territoriesandsubdivisionsandagenciessuchasmunicipalities,people'sutilitydistricts,andcooperative,non-profit,limited-dividend,ormutualassociationsthatprovideretailelectricserviceneedstoruralareasorsupplythepowerneedsofdistributionborrowersinruralareas.Theloansandloanguaranteesfinancetheconstructionofelectricdistribution,transmission,andgenerationfacilities,includingsystemimprovementsandreplacementsrequiredtofurnishandimproveelectricserviceinruralareas.Inaddition,thesefinanceinstrumentscanbeusedfordemandsidemanagement,energyconservationprograms,andon-gridandoff-gridrenewableenergysystems.Inaddition,pleaserefertoTheRuralUtilitiesService’sEnergyEfficiencyandConservationLoanProgram,whichwaslaunchedonDecember5,2013.ThisprogramexpandsthetypesofprojectsthatcanbesupportedbyruralcooperativesthatdrawontheRUSlendingfacility.TheprogramallowsRUStofinance:

• Allenergyefficiencymeasuresonaconsumerpremises;• Distributedgenerationforon-oroff-gridrenewableenergysystems;• Demandsidemanagementinvestments;


• Energyaudits;• Consumereducationandoutreachprograms;• Powerfactorcorrectionequipmentontheconsumersideofthe

meter;• Re-lampingtomoreenergyefficientlighting;• OtherenergyefficiencyprograminvestmentsapprovedbyRUS

residentialandcommercialenergyaudits;and,• Communityawarenessandoutreachprograms.

FORMOREINFORMATIONMoreinformationcanbefoundonlineat:http://www.rurdev.usda.gov/UEP_Homepage.htmlProgramContactJimElliottUSDARuralDevelopment–ElectricProgramU.S.DepartmentofAgriculturePhone:(202)720-9546Email:[email protected]


USDATheRuralUtilitiesService:EnergyEfficiency&ConservationLoanProgram

DESCRIPTION

InDecember2013,theRUSElectricProgrampublishedthefinalrulefortheEnergyEfficiencyandConservationLoanProgram.ThefinalruleimplementsSection6101ofthe2008FarmBill,andexpandstheelectricprogram’sabilitytomakeloansforenergyefficiencyactivities(e.g.,buildingweatherization,HVACupgrades,groundsourceheatpumps,lighting,smallscalerenewablegenerationsuchassolarandwind,energyaudits,andsoftcosts).ThenewregulationreducesbarrierstoinvestmentinenergyefficiencyandpromotesruraleconomicgrowthbyincreasingRUSborrowers’financingopportunities.Borrowerscaneitherloanthefundstoconsumersorutilizethemtoenhancetheutilitysystem’sefficiency–supportingbusinessesandhomeownersacrossruralAmerica.Notonlywilltheefficiencyupgradefundinghelpconsumersreducetheirmonthlyenergybills,butitwillalsoreducegreenhousegasesandpreventclimatechange.

ELIGIBLEACTIVITIESANDINVESTMENTSEntitiesnewtotheRUSprogrammustbedeemedeligibleundertheRuralElectrificationAct,whichwascreatedin1936tobringelectricitytoruralareas.Onceborrowersaredeemedeligible,theymayonlyborrowfundsforenergyefficiencyactivities.PotentialborrowersshouldreachouttoGeneralFieldRepresentativestafforheadquarterspersonnelforguidanceonsubmittinganapplication.Theywillneedtoprovidebothabusinessplanandqualityassuranceplantosupporttheloanapplication.Toassistwiththeapplicationprocess,theRUSElectricProgramofferswebinarsandinformationsessionswithpotentialborrowers.

FORMOREINFORMATIONMoreinformationcanbefoundonlineat:http://www.rurdev.usda.gov/uep_homepage.html


USDATheRuralUtilitiesService:HighEnergyCostGrantProgram

DESCRIPTION

TheHighEnergyCostGrantProgramprovidesgrantstopurchase,construct,install,repair,replace,orimproveenergygeneration,transmission,ordistributionfacilitiesincommunitieswithextremelyhighenergycoststhatareatleast275percenthigherthanthenationalaverage.On-gridandoff-gridrenewableenergyprojects,energyefficiency,andenergyconservationprojectsareeligible.

ELIGIBLEACTIVITIESANDINVESTMENTSGrantsaremadetostates,politicalsubdivisionsofstates,for-profitandnon-profitbusinesses,cooperatives,associations,organizations,andotherentitiesorganizedunderthelawsofstates,Indiantribes,tribalentities,andindividuals.ThegovernmentsandentitieslocatedinanyU.S.Territory/possessionorotherareaauthorizedbylawtoreceivetheservicesandprogramsoftheRuralUtilitiesServiceortheRuralElectrificationActof1936,asamended,arealsoeligible.Projectsmustserveruralcommunitiesinwhichtheannualaverageresidentialexpenditureforhomeenergyisatleast275percentofthenationalaverage.Grantfundsmaybeusedtoacquire,construct,extend,upgrade,orotherwiseimproveenergygeneration,transmission,ordistributionfacilitiesservingeligiblecommunities.Allenergygeneration,transmission,anddistributionfacilitiesandequipment,usedtoprovideelectricity,naturalgas,homeheatingfuels,andotherenergyservicetoeligiblecommunitiesareeligible.Projectsprovidingorimprovingenergyservicestoeligiblecommunitiesthroughon-gridandoff-gridrenewableenergyprojects,energyefficiency,andenergyconservationprojectsareeligible.Agrantprojectiseligibleifitimproves,ormaintainsenergyservices,orreducesthecostsofprovidingenergyservicestoeligiblecommunities.Grantfundsmaynotbeusedtopayutilitybillsortopurchasefuels.Grantsmaycoveruptothefullcostsofanyeligibleprojectssubjecttothestatutoryconditionthatnomorethanfourpercentofgrantfundsmaybeusedfortheplanningandadministrativeexpensesofthegrantee.


FORMOREINFORMATIONMoreinformationcanbefoundonlineat:http://www.rurdev.usda.gov/UEP_Homepage.htmlUSDARuralDevelopment–RuralUtilitiesService,ElectricProgramU.S.DepartmentofAgriculturePhone:(202)720-9545Email:[email protected]


USDATheRuralUtilitiesService:RuralEnergySavingsProgram

DESCRIPTION

TheRuralUtilitiesServiceprovidesRuralEnergySavingsProgram(RESP)loanstoeligibleentitiesthatagreeto,inturn,makeloanstoqualifiedconsumersforthepurposeofimplementingenergyefficiencymeasures.UnderRESP,eligibleentitieswillborrowfundsatazeropercentinterestratefromRUSandwillbepermittedtochargenomorethanathreepercentinterestratetoqualifiedconsumers.Theseloansaremadeavailableundertheauthorityofsection6407oftheFarmSecurityandRuralInvestmentActof2002(7U.S.C.8107a).

ELIGIBLEACTIVITIESANDINVESTMENTSEligibleenergyefficiencymeasuresfundedunderRESPmustbefororatapropertyorpropertiesservedbyaRESPborrower,usingcommerciallyavailabletechnologiesthatwouldallowqualifiedconsumerstodecreasetheirenergyuseorcoststhroughcost-effectivemeasures.LoansmadebyRESPborrowersunderthisprogrammayberepaidthroughchargesaddedtothequalifiedconsumer’sbillforthepropertyorpropertiesfor,oratwhich,energyefficienciesareorwillbeimplemented.Loansmadetothequalifiedconsumersmustbebyanamountthatensures,tothemaximumextentpracticable,thataloanterm,ofnotmorethantenyears,willnotposeanunduefinancialburdenonthequalifiedconsumer.PotentialborrowersshouldreachouttoGeneralFieldRepresentativestafforheadquarterspersonnelforguidanceonfundingavailability,anddeadlinesandprocedurestosubmitaloanapplication.Toassistwiththeapplicationprocess,theRUSElectricProgramofferswebinarsandinformationsessionswithpotentialborrowers.

FORMOREINFORMATIONMoreinformationcanbefoundonlineat:http://www.rurdev.usda.gov/uep_homepage.html


USDAAdditionalLocalImplementationInformation

ADDITIONALUSDALOCALIMPLEMENTATIONINFORMATION

RuralDevelopmentBusinessProgramsDirectorsListhttp://www.rurdev.usda.gov/BCP_BI_ProgramDirectorList.htmlRuralDevelopmentBusinessProgramsEnergyBranch–EnergyCoordinatorshttp://www.rurdev.usda.gov/BCP_Energy_CoordinatorList.htmlRuralDevelopmentStateOfficeshttp://www.rurdev.usda.gov/stateofficeaddresses.htmlRuralElectricCo-ops(QualifiedLenders)https://www.nreca.coop/about-electric-cooperatives/member-directoryEnergyMatrixUSDAhasmanyprogramstoassistfarmers,ruralresidents,andthenationtorespondtoenergy-relatedissuesandopportunities.Theserangefrombasicscientificresearchtothedevelopmentandcommercializationofnewtechnologies.Frommoreefficientfarmingtechniques,windfarms,andethanolplantstobiochemicalandgenomicsresearch,USDAisdeeplyinvolvedinandcommittedtothenation'squestforenergysecurity.TheEnergyMatrixisanavigationalaide.USDA'senergyrelatedprogramsarelargeinscope,andextendamongmanyUSDAagenciesandmissionareas.Thesiteisavailabletosearchforalternativeandaffordableenergysolutions,fundingforprojects,availableprogramsandprograminformation,orresearchanddevelopmentprogramsandinitiatives.TheEnergyMatrixisUSDA'sone-stop-shoppingmatrixservingthepublic,privatebusinessesandthegovernment.USDA’sEnergyMatrixcanbefoundhere:http://www.usda.gov/energy/matrix/home


• EnergyEfficientMortgageProgram

• FHARiskSharing

• MultifamilyHousing

• PublicHousingCapitalFund

• PublicHousingEnergyPerformanceContracts

• RehabilitationMortgageAssistance:Section203(k)Loans

• Section108LoanGuaranteeProgram

� HUDCaseStudy� AdditionalHUDLocalImplementation

Information


UNITEDSTATESDEPARTMENTOFHOUSINGANDURBANDEVELOPMENT


HUDEnergyEfficientMortgageProgram

DESCRIPTION

TheFederalHousingAdministration’s(FHA)EnergyEfficientMortgageprogram(EEM)helpshomebuyersorhomeownerssavemoneyonutilitybillsbyenablingthemtofinancethecostofimprovementsthatwillmaketheirhomemoreenergyefficient.Theprogramcanbeusedwithaneworexistinghome,aspartofaborrower’shomepurchaseormortgagerefinancetransaction.Thedesiredenergyefficiencyimprovementsarebundledintoan“energypackage”andmustbecost-effective.Acost-effectiveenergypackageisoneinwhichthecostoftheimprovements,includingmaintenanceandrepair,islessthanthevalueoftheenergysavedovertheestimatedusefullifeofthoseimprovements.Essentially,thefinancedenergypackageiscosteffectiveifitpaysforitselfwiththeenergysavings.Theborrowermustobtainahomeenergyassessment.Thepurposeoftheenergyassessmentistoidentifyopportunitiesforimprovingtheenergyefficiencyofthehomeandtheircost-effectiveness.Theassessmentmustbeconductedbyaqualifiedenergyrater,assessor,orauditorusingwhole-homeassessmentstandards,protocolsandprocedures.Qualifiedhomeenergyraters/assessorsmustbetrainedandcertifiedasoneofthefollowing:

• BuildingPerformanceInstituteBuildingAnalystProfessional• BuildingPerformanceInstituteHomeEnergyProfessionalEnergy

Auditor• ResidentialEnergyServicesNetworkHomeEnergyRater

Improvementsareeligiblewhentheyareconfirmedtomeetthecost-effectivetest.Becausethefinancedenergypackageiscost-effective,borrowersdonotneedtoincomequalifyfortheportionofthemortgagethatfinancestheenergypackage.Themortgageisunderwrittenasiftheenergypackagedidnotexist,i.e.,byusingstandardFHAunderwritingstandards,qualifyingincomeratios,andmaximummortgage/minimumcashinvestmentrequirementswithoutregardtotheenergypackage.



AllpersonswhomeettheincomerequirementsforFHA'sstandardSection203(b)insuranceandcanmakethemonthlymortgagepaymentsareeligibletoapply.EEMcanbeusedtomakeenergyefficientimprovementsinonetofourunitexistingandnewhomes.Theimprovementscanbeincludedinaborrower'smortgageonlyiftheirtotalcostislessthanthetotaldollarvalueoftheenergythatwillbesavedduringtheirusefullife.EEMcanalsobeusedwithFHA'sSection203(h)programformortgagesmadetovictimsofpresidentiallydeclareddisasters.ThemortgagemustcomplywithbothSection203(h)requirements,aswellasthoseforEEM.However,theprogramislimitedtooneunitdetachedhouses.OthereligibilityrequirementsmaybefoundintheHomeowner'sGuide,availableonlineat:http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/eem/eemhog96

FORMOREINFORMATIONVisittheFHAResourceCenterat:http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/fharesourcectrProgramContactPatriciaMcBarron,CreditPolicySpecialistU.S.DepartmentofHousingandUrbanDevelopmentPhone:(202)402-5389Email:[email protected]


HUDFHARiskSharing

DESCRIPTION

Section542(c)enablesHUDandstateandlocalhousingfinanceagencies(HFAs)toprovidenewrisk-sharingarrangementstohelpthoseagenciesprovidemoreinsuranceandcreditformultifamilyloans.ArelatedprogramistheQualifiedParticipatingEntities(QPE)RiskSharingProgram:Section542(b).TheprogramprovidesnewinsuranceauthorityindependentoftheNationalHousingAct.Section542(c)providescreditenhancementformortgagesofmultifamilyhousingprojectswhoseloansareunderwritten,processed,serviced,anddisposedofbyHFAs.HUDandHFAsshareintheriskofthemortgage.Theprogramwasoriginallydesignedasapilottoassessthefeasibilityofrisk-sharingpartnershipsbetweenHUDandqualifiedstateandlocalHFAsinprovidingaffordablehousing.In2001,PublicLaw106-377,knownastheFY2001AppropriationsAct,convertedthepilotprogramtoapermanentmultifamilyinsuranceprogram.Theunitallocationandcreditsubsidyobligationrequirementsofthedemonstrationprogramarenolongerineffect.


ParticipatingqualifiedstateandlocalHFAsmayoriginateandunderwriteaffordablehousingloansincludingnewconstruction,substantialrehabilitation,refinancing,andhousingfortheelderly.TheprogramprovidesfullFHAmortgageinsurancetoenhanceHFAbondstoinvestmentgrade.HFAsmayelecttosharefrom10to90percentofthelossonaloanwithHUD.TheHFAreimbursesHUDintheeventofaclaimpursuanttotermsoftherisksharingagreement.AnHFAmustbeapprovedbyHUDtoparticipateinthisprogram.TobeeligibletheHFAmust:(1)carrythedesignationof"toptier"oritsequivalentasevaluatedbyStandard&Poor'soranothernationallyrecognizedratingagency;or(2)receiveanoverallratingof"A"fortheHFAforitsgeneralobligationbondsfromanationallyrecognizedratingagency;and(3)otherwisedemonstrateitscapacityasasound,well-managedagencythatisexperiencedinfinancingmultifamilyhousing;and(4)haveatleastfiveyearsofexperienceinmultifamilyunderwriting;and(5)beaHUD-approvedmultifamilymortgageingoodstanding.


Eligiblemortgagorsincludeinvestors,builders,developers,publicentities,andprivatenon-profitcorporationsorassociationsmayapplytoaqualifiedHFA.Individuals,families,andpropertyownersmaybeeligibleforaffordablehousing.

FORMOREINFORMATIONMoreinformationcanbefoundonlineat:http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/progdesc/riskshare542cProgramContactDanSullivan,ActingDirectorMultifamilyProductionU.S.DepartmentofHousingandUrbanDevelopmentOffice:(202)402-6130Email:[email protected]


HUDMultifamilyHousing

DESCRIPTION

HUD-FHAmortgageinsuranceprogramsformultifamilypropertiesprovidelong-term(35-40years)fixedrate,fullyamortizingloansforrefinancing,acquisition,rehabilitationandnewconstructionofmultifamilyproperties.Suchpropertiesmusthavefiveormoreunits,eachwithcompletekitchensandbaths,offeredformonthlyrentfornon-transienttenancy(e.g.nodaily,weeklytenancyortemporaryshelter).MortgageinsuranceisauthorizedfordifferentcircumstancesunderseveraltitlesoftheNationalHousingActasfollows:

• Refinanceoracquisitionofexisting,occupiedandoperatingproperties:Section207/223(f);

• Refinanceofalreadyinsuredexistingproperties:Section207/223(a)(7);

• Supplementalloans(2ndliens)foralreadyinsuredproperties:Section241(a);

• Newconstructionorsubstantialrehabilitationunderthefollowing:

o Section221(d)(4)forgeneraloccupancyo Section221(d)(4)forgeneraloccupancyo Section220forgeneraloccupancyinredevelopmentareaso Section231forelderlypersons(62+)andnon-elderlydisabled(up

to25percentofunits).

Detailedinformationoneachoftheseprogramsmaybefoundat:http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/progdescInsuredmortgagesareavailableonlythroughHUD-FHAapprovedlenders.Contactanapprovedlenderformoreinformationonspecificloanrequirementsandhowtoapply.Alistofapprovedlendersmaybefoundat:http://portal.hud.gov/hudportal/documents/huddoc?id=aprvlend.pdf


EnergyInitiativesforHUD-FHAMortgageInsurancePrograms:EffectiveMay28,2016allapplicantsforinsuredmortgagesmustmeetcertainenergyefficiencyrequirements:


• UtilityconsumptionmustbebenchmarkedbyreportingconsumptiondatathroughEPA’sPortfolioManager;

• AminimumEnergyStar®Scoreof60mustbeobtained,andifnotthen:o Fornewconstructionandgutrehabilitation-Drawingsand

specificationsmustberevisedtoachievetheminimumscore;o Forsubstantialrehabilitation(lessthangutrehab)-AnASHRAE

LevelIIEnergyAuditmustbeobtainedandcostbeneficialconservationmeasuresimplemented;

o Forrefinanceoracquisitionofexistingproperties-AnASHRAELevelIIEnergyAuditmustbeobtainedandcostbeneficialconservationmeasuresidentified.Documentedsavingsestimatedforconservationsmeasuresimplementedthroughfundedrepairsandalterationswillbeunderwrittenat75centsforeverydollarofsavings.

EffectiveApril1,2016,reducedmortgageinsurancepremiumsareavailableforpropertiesthatmeetthefollowingrequirements:

• AchievementofanindustryrecognizedGreenStandardofbuildingperformanceeitherpriortoapplicationoraspartofproposednewconstructionorrehabilitation;

• SeparateverificationofenergyefficiencybymeansofanEnergyStar®Scoreof75orbetter;and

• OngoingenergyefficientperformanceevidencedbyannualsubmissionofanEnergyStar®Scoreof75orbetter.

ProgramBenefitsforBorrowers:

• HUD-FHAunderwritesreducedoperatingexpenseresultingfromdocumentedenergyconservationmeasuresyieldinghigherloanamountsbasedonimprovednetoperatingincomeofproperties;

• HUD-FHAtreatsthecostofenergyconservationmeasuresaseligiblecostsofconstruction,rehabilitation,repairsoralterations,whichmaybefundedfromloanproceeds;

• Ownerssecuringreductionsinmortgageinsurancepremiumsachieveapermanentreductioninthecostofborrowingwhichmayalsoresultinhigherloanamountsresultingfromimproveddebtservicecoverage;

• Ownersenjoylowerenergycosts,improvedpropertyperformanceandtenantsatisfaction;and

• OwnersobtainingGreenStandardcertificationareabletousethisrecognitioninmarketingtheirproperty.

FORMOREINFORMATION

ProgramContactDanSullivan,ActingDirectorMultifamilyProductionU.S.DepartmentofHousingandUrbanDevelopmentOffice:(202)402-6130Email:[email protected]


HUDPublicHousingCapitalFund

DESCRIPTION

ThePublicHousingCapitalFundisavailablebyformuladistributionforcapitalandmanagementactivities,includingdevelopment,financing,andmodernizationofpublichousingprojects,whichincludes:

• Improvementofenergyandwater-useefficiencybyinstallingorchangingfixturesandfittings;

• Integratedutilitymanagementandcapitalplanningtomaximizeenergyconservationandefficiency;

• Redesign,reconstruction,andreconfigurationofpublichousingsitesandbuildings(includingaccessibilityimprovements)anddevelopmentofmixed-financeprojects;

• Vacancyreduction;• Addressingdeferredmaintenanceneedsandthereplacementof

obsoleteutilitysystemsanddwellingequipment;• Plannedcodecompliance,managementimprovements,includingthe

establishmentandinitialoperationofcomputercentersinandaroundpublichousingthroughaNeighborhoodNetworksinitiative,forthepurposeofenhancingself-sufficiency,employability,andeconomicself-relianceofpublichousingresidentsbyprovidingthemwithon-sitecomputeraccessandtrainingresources;

• Demolitionandreplacement;• Residentrelocation;• Capitalexpenditurestofacilitateprogramstoimprovethe

empowermentandeconomicself-sufficiencyofpublichousingresidents,andimproveresidentparticipation;

• Capitalexpenditurestoimprovesafetyandsecurityofresidents;and,homeownersactivities,includingprogramsunderSection32.

BasedonSection9,notmorethan20percentofapublichousingagency’s(PHA)capitalfundsmaybeusedforoperatingexpensesifthePHA’splanprovidesforsuchuse.However,non-troubledPHAsthatownoroperatefewerthan250unitshavefullflexibilityinhowtheyusecapitalandoperatingfundsforeligibleactivitiesunderSections9(d)(i)and9(e)(i).PHAsmayrequestHUDapprovaltoborrowfundsfromtheprivatemarkettomakeimprovementstoand/ordevelopadditionalpublichousing,bypledgingaportionoftheirfutureannualCapitalFundgrantstomakedebtservicepayments.



PublicHousingAuthoritiesareeligibleforthePublicHousingCapitalFund.FORMOREINFORMATION

Moreinformationcanbefoundonlineat:http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/programs/ph/capfund

[email protected]


HUDPublicHousingEnergyPerformanceContracts

DESCRIPTION

PublicHousingEnergyPerformanceContracting(EPC)isaninnovativefinancingtechniquethatusescostsavingsfromreducedenergyconsumptiontorepaythecostofinstallingenergyconservationmeasures.NormallyofferedbyEnergyServiceCompanies(ESCOs),thisinnovativefinancingtechniqueallowsbuildinguserstoachieveenergysavingswithoutup-frontcapitalexpenses.Thecostsoftheenergyimprovementsaregenerallypaidforwitheligiblethird-partyfinancingandpaidbackoutoftheenergysavings.Otheradvantagesincludetheabilitytouseasinglecontractortodonecessaryenergyauditsandretrofitandtoguaranteetheenergysavingsfromaselectedseriesofconservationmeasures.


PublicHousingAuthoritiesareeligibleforEPC.FORMOREINFORMATION

Moreinformationcanbefoundonlineat:http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/programs/ph/phecc/eperformanceProgramContactChrisGolden,[email protected]


HUDRehabilitationMortgageAssistance:Section203(k)Loans

DESCRIPTION

Thesection203(k)mortgageproductenableshomebuyersandhomeownerstofinanceboththepurchaseofahouseandthecostofitsrehabilitationthroughasinglemortgageortofinance(orrefinance)therehabilitationoftheirexistinghome.Inordertoqualifyforasection203(k)mortgage,thepropertybeingfinancedmustbeatleastayearold.Aportionoftheloanproceedsisusedtopaytheseller,or,inthecaseofarefinance,topayofftheexistingmortgage,andtheremainingfundsareplacedinanescrowaccountandreleasedasrehabilitationiscompleted.Thecostoftherehabilitationmustbeatleast$5,000,butthetotalloanvaluemuststillfallwithintheFHAmortgagelimitforthearea.Themaximumloanvalueisdeterminedbyeither(1)thevalueofthepropertybeforerehabilitationplusthecostofrehabilitation,or(2)110percentoftheappraisedvalueofthepropertyafterrehabilitation,whicheverisless.


TheextentoftherehabilitationcoveredbySection203(k)insurancemayrangefromrelativelyminor(thoughexceeding$5000incost)tovirtualreconstruction:ahomethathasbeendemolishedorwillberazedaspartofrehabilitationiseligible,forexample,providedthattheexistingfoundationsystemremainsinplace.Section203(k)insuredloanscanfinancetherehabilitationoftheresidentialportionofapropertythatalsohasnon-residentialuses;theycanalsocovertheconversionofapropertyofanysizetoaone-tofour-unitstructure.HUDrequiresthatpropertieswith203(k)loans,includingstreamlined(k)loans,meetcertainbasicenergyefficiencyandstructuralstandards,suchas:

• Improvingthethermalefficiencyofthedwelling:

o Weather-stripalldoorsandwindowstoreduceinfiltrationofairwhenexistingweather-strippingisinadequateornonexistent;

o Caulkorsealallopenings,cracksorjointsinthebuildingenvelopetoreduceairinfiltration;

o Insulateallopeningsinexteriorwallswherethecavityhasbeenexposedasaresultoftherehabilitation.Insulateceilingareaswherenecessary;

o Adequatelyventilateatticandcrawlspaceareas.


• ReplacementSystems:o Heating,ventilating,andairconditioningsystemsupplyand

returnpipesandductsmustbeinsulatedwhenevertheyrunthroughunconditionedspaces;

o Heatingsystems,burners,andairconditioningsystemsmustbesizedtobenogreaterthan15percentoversizedforthecriticaldesign,heatingorcooling,excepttosatisfythemanufacturer'snextclosestnominalsize.

Thetypesofimprovementsborrowersmaymakeusing203(k)financinginclude:

• Makingandfacilitatingenergyconservationimprovementssuchas:o Renewableenergysystems(e.g.,solar,wind,geothermal,

biomass),o Wholehousewrappingandinsulation,o Sealingducts,o EnergyefficientHVACand/orappliances;

• Structuralalterationsandreconstruction;• Modernizationandimprovementstothehome'sfunction;• Eliminationofhealthandsafetyhazards;• Changesthatimproveappearanceandeliminateobsolescence;• Reconditioningorreplacingplumbing;installingawelland/orseptic

system;• Addingorreplacingroofing,gutters,anddownspouts;• Addingorreplacingfloorsand/orfloortreatments;• Majorlandscapeworkandsiteimprovements;and,• Enhancingaccessibilityforadisabledperson.

FORMOREINFORMATION

Moreinformationcanbefoundonlineat:http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203k--dfProgramContactKevinStevens,DirectoroftheHomeMortgageInsuranceDivisionU.S.DepartmentofHousingandUrbanDevelopmentPhone:(202)402-4317Email:[email protected]


HUDSection108LoanGuaranteeProgram

DESCRIPTION

TheSection108LoanGuaranteeprogram,theloanguaranteeprovisionoftheCommunityDevelopmentBlockGrant(CDBG)program,isoneofthemostpotentandimportantpublicinvestmenttoolsthatHUDofferstostateandlocalgovernments.Section108allowscommunitiestotransformasmallportionoftheirCDBGfundsintofederallyguaranteedloanslargeenoughtopursuephysicalandeconomicrevitalizationprojectsthatcanrenewentireneighborhoods.TheSection108programisasourceoffinancingforeconomicdevelopment,housingrehabilitation,publicfacilitiesrehabilitation,constructionorinstallation,forthebenefitoflow-tomoderate-incomepersonsortoaidinthepreventionofslumsorblight.SecuritySection108loansarenotrisk-free;theprincipalsecurityfortheloanguaranteeisapledgebytheapplicantpublicentityorstateofitscurrentandfutureCDBGfunds.Additionalsecuritywillalsoberequiredtoassurerepaymentofguaranteedobligations.Theadditionalsecurityrequirementswillbedeterminedonacase-by-casebasis,butcouldincludeassetsfinancedbytheguaranteedloan.RepaymentThemaximumrepaymentperiodforaSection108loanguaranteeis20years.HUDhastheabilitytostructuretheprincipalamortizationtomatchtheneedsoftheprojectandborrower.Eachannualprincipalamountwillhaveaseparateinterestrateassociatedwithit.FinancingSourceSection108obligationsarefinancedthroughunderwrittenpublicofferings.FinancingbetweenpublicofferingsisprovidedthroughaninterimlendingfacilityestablishedbyHUD.InterestRatesandFeesInterestratesoninterimborrowingarepricedatthethreemonthLondonInterbankOfferedRate(LIBOR)plus20basispoints(0.2percent).PermanentfinancingispeggedtoyieldsonU.S.Treasuryobligationsofsimilarmaturitytotheprincipalamount.Asmalladditionalbasispointspread,dependingonmaturity,willbeaddedtotheTreasuryyieldtodeterminetheactualrate.Additionally,allnewcommitmentscarryafeebasedonthepercentageoftheSection108loanamount.


DefaultTodate,therehasbeennodefaultunderSection108resultinginarepaymentbyHUD.Intheeventofdefaultrequiringapayment,HUDwouldcontinuetomakepaymentsontheloaninaccordancewithitsterms.ThesourceofpaymentsbyHUDpursuanttoitsguaranteewouldalmostalwaysbepledgedCDBGfunds.However,HUDdoeshaveborrowingauthoritywiththeU.S.Treasuryifthepledgedfundsareinsufficient.


EligibleApplicants:

• Metropolitancitiesandurbancounties(i.e.,CDBGentitlementrecipients)

• Non-entitlementcommunitiesthatareassistedinthesubmissionofapplicationsbystatesthatadministertheCDBGprogram

• States• Non-entitlementcommunitieseligibletoreceiveCDBGfundsunder

theHUD-AdministeredSmallCitiesCDBGprogram• InsularAreas(AmericanSamoa;Guam;NorthernMarianaIslands;and

theVirginIslands)Forpurposesofdeterminingeligibility,CDBGrulesandrequirementsapply.AswiththeCDBGprogram,allprojectsandactivitiesmustprincipallybenefitlowandmoderate-incomepersons,aidintheeliminationorpreventionofslumsandblight,ormeetacommunity'surgentneeds.EligibleActivities:

• EconomicdevelopmentactivitieseligibleunderCDBG• Acquisitionofrealproperty• Rehabilitationofpubliclyownedrealproperty• HousingrehabilitationeligibleunderCDBG• Construction,reconstruction,orinstallationofpublicfacilities

(includingstreet,sidewalk,andothersiteimprovements)• Relatedrelocation,clearance,andsiteimprovements• Paymentofinterestontheguaranteedloanandissuancecostsof

publicofferings• Debtservicereserves• Publicworksandsiteimprovementsincolonias• Inlimitedcircumstances,housingconstructionascommunity

economicdevelopmentFORMOREINFORMATION

Moreinformationcanbefoundonlineat:https://www.hudexchange.info/programs/section-108


Section108programregulationscanbefoundat24CFR570subpartM.ProgramContactB.CorySchwartzFinancialManagementAnalystU.S.DepartmentofHousingandUrbanDevelopmentPhone:(202)402-4105Email:[email protected]


HUDCaseStudy

HUDCASESTUDY:PublicHousingAuthorityLeveragesPower

PurchaseAgreementforJurisdiction-WideScatteredSiteSolarInstallations

TheDenverHousingAuthority(DHA)launchedapublic-privatepartnershiptoinstallsolarphotovoltaicsystemsacrossitsportfolioofscattersite,singlefamilyresidentialbuildings.TheinstallationsarefinancedthroughaPowerPurchaseAgreement(PPA)withasolarproviderthatenablesthePublicHousingAuthority(PHA)toachievesolarinstallationswithnoup-frontcapitalcosts.UnderthePPA,themeterholderswouldpayforthepowergeneratedfromtheinstalledsystems,initiallypricedatarateroughlycomparabletothecurrentrates.Energysavingswouldoccurinout-yearsasutilityratesincreasedbeyondtheenergyratespecifiedinthePPA. ThisisthefirsttimeaPHAusedaPPAtoachievesolarinvestmentsacrossanentiresegmentofthePHAportfolio.ThismodelcanbeusedbyotherPHAstoinitiate“wholeportfolio”renewablesolutions.Akeymotivationfortheprojectwasinsecuringfixedandpredictablelong-termutilitycostsandpurchasingenergyproductionfromarenewablesource.Theprojectbeganinsummer2011,whenDHA,representedbyBallardSpahr,issuedacompetitiverequestforproposalstosolicitaprivatepartytoinstall,own,andoperatesolarelectricgenerationsystemsonthebuildings.Thereafter,DHAselectedaprivateprojectdeveloperandexecutedaPPAandSiteLicenseAgreement.ThePPAwasdevelopedbygroupingsofexistingmulti-familypropertiesandhousingunitsforalarge-scalesolarelectricproject.Inall,378systemsserving668predominatelysinglefamilyresidenceswereinstalled.Asignificantchallengewasinlocatingasourceofcapitalforarenewableenergyprojectscatteredacross378sites.Toaccomplishthis,DHAwasabletotakeadvantageoflow-costdebtfinancingprovidedthroughtheissuanceofQualifiedEnergyConservationBonds.Theratesonthosebondsforborrowerswithstrongcreditarenearzeropercentovera20-yearterm.Inadditiontosupportingcommunityrenewableenergyobjectives,theprojectcreated40newgreenjobsinDenver.


HUDAdditionalLocalImplementationInformation

ADDITIONALHUDLOCALIMPLEMENTATIONINFORMATION

HUDLocalOffices http://portal.hud.gov/hudportal/HUD?src=/localofficesHUDRegionalOfficeLiaisons

RegionI: TomChase,[email protected]: JacobLevine,[email protected]: RebeccaMaclean,[email protected]: JerrieMagruder,[email protected]: DaleDarrow,[email protected]

BrianGillen,[email protected]: JerlindaBanks,[email protected]

LeslieAnnBradley,[email protected]: EnriqueShaw,[email protected]: GuadalupeHerrera,[email protected]: WayneWaite,[email protected]: JerryRoyster,[email protected]


• CleanEnergyFinanceFacilityfortheCaribbeanandCentralAmerica(CEFF-CCA)


UNITEDSTATESDEPARTMENTOFSTATE


STATECleanEnergyFinanceFacilityfortheCaribbeanandCentralAmerica(CEFF-CCA)

DESCRIPTION

TheCleanEnergyFinanceFacilityfortheCaribbeanandCentralAmerica(CEFF-CCA)isaninnovativefinancingprogramthataimstosupportprivate-sectorcleanenergydevelopmentinthetwofocalregions.ThefourU.S.governmentpartnerscollaboratingintheFacilityaretheU.S.DepartmentofState,USAID,USTDA,andOPIC.TheCaribbeanandCentralAmericahaveabundantrenewableenergyresources,yetsufferfromelectricityshortagesandhighprices.Thegoalofthetwo-yearprogramistocatalyzemuch-neededpublicandprivatesectorinvestmentincleanenergyprojectsbyprovidinggrantsupportforearly-stageprojectdevelopment.TheFacilitywillhelppromisingbutundercapitalizedprojectsaddresskeyplanningandfeasibilityissuesthatarecriticaltosuccessfulfinancingandimplementation.Inadditiontograntsupport,CEFF-CCAparticipationhasthepotentialtoopendoorstoadditionalOPICandUSTDAsupport,includingOPICloansandguarantees,politicalriskinsurance,andinvestmentfundsupport.USTDAoffersprojectdevelopmentsupportbeyondgrants.

ELIGIBLEACTIVITIESANDINVESTMENTSWhoiseligible?Facilityfundingisavailabletoinvestorsandprojectdevelopers,andtohostcountrypublicandprivatesectorprojectsponsorsinterestedinearlyplanningsupporttostructurebankableopportunitiesforimplementationfinancingorinsurance.Whattypesofprojectsareeligible?Cleanandrenewableenergyprojectsinthefollowingcategories:

• PowerGenerationProjectsinvolvingconstructionandoperationofrenewableenergypowergenerationfacilitiesforconnectiontothenationalgrid,localutilities,ordistributioncompanies.Projectsmustusecommerciallyproventechnologies.


• Market-BasedSolutionsProjectsinvolvingsalesanddistributionofsmall-scalecleanenergysystemsandproductsthatprovideaccess,orextendthehoursofaccess,toelectricity.Examplesincludeoff-griddistributedgenerationsystems,self-containedsolarhomekits,pay-as-you-goaccesssystems,etc.

• RenewableEnergyInfrastructureCatalyzersProjectsthatintroduceorexpandessentialinfrastructureorprovideadditionalresourcestoaspecificmarket,whichrenewableenergysectoractorsmaythenleveragetoexpandrenewableenergyofferingstoatargetmarket.Examplesincludefinancingandleasingfacilities.

CEFF-CCAsupportwillalsobeconsideredforprojectsthatpromoteenergyefficiency,including:electricitygridlossmitigationandothersmartgridactivities,energyefficiencybuildingsolutions,andactivitiesthatmitigatetheneedfornewpowergeneration.Projectsmustmeetthefollowingcriteria:

• Haveclearsocialandeconomicbenefits,withprocessesinplacetomonitorandevaluatethesebenefits.

• Positiveimpactonenergyaccess,energysecurity,povertyalleviation,genderinclusion,andotherkeyconsiderationsimportanttoU.S.Governmentmissionsandactivitiesinthecountrywheretheprojectislocated.

• SupportlowemissionsdevelopmentinCentralAmericaandtheCaribbean.

HowcanCEFF-CCAfundsbeused?Fundsaretobeusedforprojectdevelopmentcoststhatarecriticaltotheprojectreachingfinancialclose(oranotherwiserelevantmilestone).ThefollowingisanillustrativelistofpermissibleusesofCEFF-CCAFunds:

• Financialandtechnicalpre-feasibilityandfeasibilitystudies• Engineeringcostsassociatedwithprojectdesign,technology

assessment,andoverallfeasibilitystudies• Legalcostsforpreparationofdocumentationrelatedtopermitting,

PPAsandotherpowersalesagreements,EPCs,O&M,[5]andfinancingagreements

• Costsforthepreparationofenvironmentalandsocialimpactstudies• Costsassociatedwiththeassessmentofphysicalandtechnical

availabilityandcharacterizationofrenewableresources• Othercostsassociatedwithconsulting,engineeringorlegalservices

neededtoreachfinancialclose,todevelopproofofconceptortopilotabusinesssolution,orwithscalingupofpowergeneration,energyefficiencyservices,orbusinesssolutions

• Costsassociatedwiththeeffortsofequityfunds,bankfinancingprograms,companies,ornon-governmentalorganizationstoidentify,select,prepareandaggregateprojectsforfunding,fortheusesenumeratedabove,andsubjecttotheexclusions,aboveandbelow


ProjectsinthefollowingcategoriesarenoteligibleforCEFF-CCASupport:

• Projectsthatinvolverenewableenergytechnologiesunprovenincommercialoperations(e.g.,wavetechnology).

• Captivepowerplantsthatintroducerenewableenergyforself-generationorforasinglecustomer,withoutabroaderdevelopmentalimpact,unlessitisinthecontextofbroaderscaleintroductionofdistributedgeneration.

• Energyefficiencyupgradesforanindividualcompany’suse(althoughenergyefficiencyconsulting,financingorinstallationservicescanbeconsidered).

• “Renewableresources”projectsthatdonothaveaprimaryrenewableenergycomponent(e.g.,sustainableagriculture,water,forestry,etc.).

• Retrofitprojectsinwhichrenewableenergysourcesreplacetraditionalfossilfuelsources(althoughbrownfieldprojectscanbeconsidered).

• ProjectsparticipatinginbidselectionprocessesthathavenotbeenawardedtheconcessionorMWallocation.

• Naturalgasprojects.• Nuclearpowerprojects.

InwhichcountriescanCEFF-CCAfundsbeused?

• AntiguaandBarbuda• Barbados• Belize• CostaRica• Dominica• DominicanRepublic• ElSalvador• Grenada• Guatemala• Haiti• Honduras• Jamaica• Nicaragua• Panama• St.KittsandNevis• St.Lucia• St.VincentandtheGrenadines• TrinidadandTobago

FORMOREINFORMATIONEmail:[email protected]

Online:www.ceff-cca.org


ProgramContactGeetaUhlEnvironmentTeamLeadOfficeofRegionalSustainableDevelopment(RSD)BureauforLatinAmericaandtheCaribbean(LAC)U.S.AgencyforInternationalDevelopment(USAID)[email protected]


• TransportationInfrastructureFinanceandInnovationActProgram


UNITEDSTATESDEPARTMENTOFTRANSPORTATION


DOTTransportationInfrastructureFinanceandInnovationActProgram

DESCRIPTION

TheTransportationInfrastructureFinanceandInnovationActof1998(TIFIA),asamended,establishedafederalcreditprogramforeligiblesurfacetransportationprojectsofregionalornationalsignificanceunderwhichtheDOTmayprovidethreeformsofcreditassistance-secured(direct)loans,loanguarantees,andstandbylinesofcredit.Creditassistanceisbasedonavarietyoffactorsincludingtheproject’sregionalornationalsignificance,theextenttowhichTIFIAparticipationwillfosterinnovativepublic-privatepartnerships,andtheproject’senvironmentalbenefits(seeChapter5oftheTIFIAProgramGuideforacompletelistofevaluationcriteriaat:https://www.transportation.gov/tifia/program-guide).Theprogram'sfundamentalgoalistoattractnewinvestmentcapitaltoprojectscapableofgeneratingrevenuesthroughuserchargesordedicatedfundingsourcesandtocomplementexistingfundingsourcesbyfillingmarketgaps;thereby,leveragingsubstantialprivatecapitalforcriticalimprovementstothenation'ssurfacetransportationsystem.DOTawardscreditassistancetoeligibleapplicants,whichincludestatedepartmentsoftransportation,transitoperators,specialauthorities,localgovernments,specialdistricts,andprivateentitiesorconsortiathatmayincludecompaniesspecializinginengineering,construction,materials,and/ortheoperationoftransportationfacilities.TheinterestrateonaTIFIAloanisequaltotherateonU.S.Treasurysecuritiesofsimilarmaturityonthedayofloanclosing.Thelineofcreditinterestrateisequaltothe30-yearTreasuryrate,andtherateonguaranteedloansissubjecttonegotiationbetweenborrowerandlenderandapprovalbyDOT.

ELIGIBLEACTIVITIESANDINVESTMENTSEligibleprojectsincludehighway,transit,passengerrail,intercitybusvehiclesandfacilities,certainportfacilities,surfacetransportationfacilitiesatairports,ruralinfrastructureprojects,transitorienteddevelopmentprojects(TOD),andanyothertypeofprojectthatiseligibleforgrantassistanceundertitle23orChapter53ofTitle49oftheUnitedStatesCode.


Additionally,undertherecentlyenactedFixingAmerica’sSurfaceTransportationAct,TIFIAcreditassistancemaybeusedtocapitalizeStateInfrastructureBankstofundruralinfrastructureprojects.ToqualifyforTIFIAassistance,aprojectmustmeetthefollowingcriteria:

• Theprojectmusthavereasonablyanticipatedeligibleprojectcostsofatleast$50million(intelligenttransportationsystemprojectshavea$15millionminimumandatleast$10millionfortransit-orienteddevelopment,local,andruralprojects);

• TheTIFIAloanamountcannotexceed33percentofreasonablyanticipatedeligibleprojectcosts(unlessthesponsorprovidesacompellingjustificationforupto49percent);

• Federalfunding,includingtheTIFIAloanamount,cannotexceed80percentofreasonablyanticipatedeligibleprojectcosts;

• Seniordebtobligationsmustreceiveaninvestmentgraderating;• Theprojectmusthaveadedicatedrevenuesourcetopledgeas

repayment;and• Theprojectmustbeincludedintherelevantstate’stransportation

planningandprogrammingcycle.

FORMOREINFORMATION

Moreinformationcanbefoundonlineat:https://www.transportation.gov/tifia/program-guideorbycontactingtheDepartmentofTransportation’sTIFIAOfficeat(202)366-1059Casestudiescanbefoundonlineat:https://www.transportation.gov/tifia/projects-financedProgramContactDuaneCallender,DirectorU.S.DepartmentofTransportationPhone:(202)366-1059Email:[email protected]


• NewMarketsTaxCredits

• QualifiedEnergyConservationBonds


UNITEDSTATESDEPARTMENTOFTHETREASURY


TREASURYNewMarketsTaxCredits

DESCRIPTION

TheNewMarketsTaxCredit(NMTC)Programhelpssmallandmedium-sizedbusinessesinlow-incomecommunitiesaccessfinancingthatisflexibleandaffordable.ThetaxcreditsattractcapitalinvestmentsinCommunityDevelopmentEntities(CDEs),whicharecertifiedintermediariesthatcantheninvestinprojects.FinancingfromCDEscanapplytoawiderangeofprojects,includinghousingdevelopments,renewableenergyinstallations,andfacilitiesthatprovidecommunityservices.TheNMTCsaredistributedinacompetitiveprocesstoCDEsthatproposespecifictypesofprojectsforfinancing.CDEsthatreceiveNMTCsusetheirauthoritytooffertaxcreditstoinvestorsinexchangeforequityintheCDE.Thecredittotals39percentoftheoriginalinvestmentamountandisclaimedoveraperiodofsevenyears(fivepercentforeachofthefirstthreeyears,andsixpercentforeachoftheremainingfouryears).TheinvestmentintheCDEcannotberedeemedbeforetheendoftheseven-yearperiod.Withthesecapitalinvestments,CDEscanmakeloansandinvestmentstobusinessesoperatingindistressedareasthathavebetterratesandtermsandmoreflexiblefeaturesthanthemarket.Termscanincludelowerinterestrates,flexibleprovisionssuchassubordinateddebt,loweroriginationfees,higherloan-to-values,lowerdebtcoverageandlongermaturity.TheCommunityDevelopmentFinancialInstitutions(CDFI)FundfacilitatesaccesstotheNewMarketsTaxCreditbypostingonlineaQualifiedEquityInvestmentreportthatlistsCDEswithunusedallocations,includingthenameandcontactinformationforthepersonateachCDE.


NMTCscanbeusedforawiderangeofprojects,includingprojectsthathaveenvironmentallysustainableoutcomesinlow-incomecommunities.Forexample,NMTCsmaybeusedtofinancetheconstructionorretrofitofbuildingsthatmeetthecommunityoutcomesdescribedintheNMTCApplicationsuchasreductioninenergyorwaterusebythebusinessortenants;and/orfinancebusinessesproducingand/ordistributingrenewableenergyresources(e.g.,biomass,hydro,geothermal,solar,wind).


EntitiescertifiedasCDEsthatreceivedNMTCarelistedintheNMTCProgramAllocateesStatesServedpagehere:https://www.cdfifund.gov/awards/nmtc/Pages/default.aspxClickonthestatewheretheprojectislocatedandthatwilltakeyoutoalistofCDEsthatservethatstate.EachCDEnameprovidesalinktothatCDE’sorganizationalprofile.WhilesomeCDEsmakeequityinvestmentsinqualifyingprojectsacrossthecountry,mostfocusonspecificcommunities.Inadditiontothemanylow-incomecensustractsinmetropolitanareas,therearenearly6,500censustractsinnon-metropolitanareasinwhichNewMarketsTaxCreditscanbeused.Bylaw,theCDFIProgrammustallocateNMTCsproportionallytonon-metropolitanareas.TheCDFIProgramprovidesmappingsoftwaretoexplorespecificcensustractsforwhichinvestmentscanqualifyforNewMarketTaxCredits.

FORMOREINFORMATION

MoreinformationcanbefoundonlineontheNewMarketsTaxCreditpage:https://www.cdfifund.gov/programs-training/Programs/new-markets-tax-credit/Pages/default.aspxStateReportsonCDFIsandNewMarketsTaxCreditsAllocates:http://www.cdfifund.gov/impact_we_make/state_reports.aspProgramContactRosaMartinez,AssociateProgramManagerU.S.DepartmentofTreasuryPhone:(202)653-0311Email:[email protected]


TREASURYQualifiedEnergyConservationBonds

DESCRIPTION

AQualifiedEnergyConservationBond(QECB)isabondthatenablesqualifiedstate,tribal,andlocalgovernmentissuerstoborrowmoneyatattractiveratestofundenergyconservationprojects.AQECBisamongthelowest-costpublicfinancingtoolsbecausetheU.S.DepartmentofTreasuryprovidesataxbenefittooffsettheissuer'sborrowingcosts.ThegovernmententitiesthathavereceivedQECBsallocatedbythefederalgovernmenthavesomeoptionsforstructuringtheofferings.Themostcommonisadirectpaymentbond,whichmeansbondissuersmayreceivepaymentsfromU.S.Treasuryasaportionoftheirinterestpayments.LikeBuildAmericaBonds,QECBsaretaxablebonds.ThismeansthatinvestorsmustpayfederaltaxesonQECBinteresttheyreceive.Congressauthorized$3.2billionofQECBissuancecapacitytobeallocatedtostates,localgovernmentsandtribalgovernmentsbaseduponpopulation.AlthoughalloftheQECBshavebeenallocated,mostofthesebondsremainavailabletostate,local,andtribalentitiesthathavenotyetissuedthemtofundspecificprojectsorprograms.


QECBproceedscanbeusedtofundcertainexpendituresonavarietyofprojectsincluding:

• Reducingenergyconsumptioninpubliclyownedbuildingsbyatleast20percent;

• Implementinggreencommunityprograms(includingloans,grants,orotherrepaymentmechanisms),suchasefficientstreetlightingreplacementsandloanprogramsforresidentialenergyefficiencyimprovements;

• Developingruralcapacity,specificallyinvolvingtheproductionofelectricityfromrenewableenergyresources;

• Supportingenergy-relatedresearchfacilitiesandgrants;• Implementingmasscommutingandrelatedfacilitiesthatreduce

energyconsumptionandpollution;• Designing/runningdemonstrationprojectstopromotethe

commercializationofenergy-relatedtechnologiesandprocesses;and,• Implementingpubliceducationcampaignstopromoteenergy

efficiency.


TheTreasuryDepartmentpublishedNotice2012-44and2012-28IRB45in2012toclarifycertaineligibleactivities:http://www.irs.gov/pub/irs-drop/n-12-44.pdf

FORMOREINFORMATION

ProgramContactZoranStojanovichU.S.DepartmentofTreasuryPhone:(202)622-3980Email:[email protected]


• CleanWaterStateRevolvingFund

� CWSRFCaseStudy

• DrinkingWaterStateRevolvingFund

� DWSRFCaseStudy


UNITEDSTATESENVIRONMENTALPROTECTIONAGENCY


EPACleanWaterStateRevolvingFund

DESCRIPTION

CleanWaterStateRevolvingFund(CWSRF)programssupportwaterqualityprotectionprojectsforwastewatertreatment,nonpointsourcepollutioncontrol,andwatershedandestuarymanagement.ThroughtheCWSRFprogram,eachstateandPuertoRicomaintainrevolvingloanfundstoprovideindependentandpermanentsourcesoflow-costfinancingforawiderangeofwaterqualityinfrastructureprojects.FundstoestablishorcapitalizetheCWSRFprogramsareprovidedthroughfederalgovernmentgrantsandstatematchingfunds(equalto20percentoffederalgovernmentgrants).Today,all50statesandPuertoRicoareoperatingsuccessfulCWSRFprograms.CWSRFprogramsoperatemuchlikeenvironmentalinfrastructurebanksthatarecapitalizedwithfederalandstatecontributions.CWSRFmoniesareloanedtocommunitiesandloanrepaymentsarerecycledbackintotheprogramtofundadditionalwaterqualityprotectionprojects.Therevolvingnatureoftheseprogramsprovidesforanongoingfundingsourcethatwilllastfarintothefuture.Keyfeaturesoftheprograminclude:

• LowInterestRates,FlexibleTermsNationally,interestratesforCWSRFloansaverage1.7percent,comparedtomarketratesthataverage3.8percent.ForaCWSRFprogramofferingthisrateona30-yearloan,aCWSRFfundedprojectwouldcost24percentlessthanprojectsfundedatthemarketrate.CWSRFscanfund100percentoftheprojectcostandprovideflexiblerepaymenttermsupto30years.

• AssistancetoaVarietyofBorrowersTheCWSRFprogramhasassistedarangeofborrowersincludingmunicipalities,communitiesofallsizes,farmers,homeowners,conservationdistricts,andnon-profitorganizations.

• PartnershipswithOtherFundingSourcesCWSRFspartnerwithbanks,non-profits,localgovernments,andotherfederalandstateagenciestoprovidethebestwaterqualityfinancingsourcefortheircommunities.

• AdditionalSubsidyInrecentyears,aportionofeachstate’sCWSRFfederalcapitalizationgranthasbeenprovidedintheformofprincipalforgiveness,grants,ornegativeinterestloans.


• GreenProjectReserveInrecentyears,totheextenteligibleprojectsareavailable,aportionofeachstate’sfederalcapitalizationgranthasbeenprovidedtogreeninfrastructure,energyefficiency,waterefficiency,andotherenvironmentallyinnovativeprojects.


UndertheCWSRF,stateshaveawiderangeofoptions.Statesmaychoosefromavarietyofassistanceoptions,includingloans,refinancing,purchasing,orguaranteeinglocaldebtandpurchasingbondinsurance.Statescanalsosetspecificloanterms,includinginterestrates—fromzeropercenttomarketrate—andrepaymentperiodsupto30years.Stateshavetheflexibilitytotargetresourcestotheirparticularenvironmentalneeds,includingcontaminatedrunofffromurbanandagriculturalareas,wetlandsrestoration,groundwaterprotection,brownfieldsremediation,estuarymanagement,andwastewatertreatment.TheCWSRFprogramhasthreebroadprojecteligibilities:publiclyownedwastewatertreatmentworksdefinedinSection212oftheCleanWaterAct(CWA),publiclyorprivatelyownedprojectsthatimplementnonpointsourcemanagementprogramsestablishedunderSection319,andthedevelopmentandimplementationofanestuaryconservationandmanagementplanunderSection320oftheCWA.Underthesebroadeligibilities,stateshaveagreatdealofflexibilitytofundawiderangeofwaterqualityprojects.Statesmayalsocustomizeloantermstomeettheneedsofsmallanddisadvantagedcommunities.In2015,64percentofallloans(20percentoffunding)wentforprojectsservingpopulationsoflessthan10,000.Inaddition,somestatesprovidespecializedassistanceforcommunitiesthataredisadvantagedorexperiencingfinancialhardship.Thesestatesmightofferlowerorno-interestloans,principalforgiveness,orgrantstoprovidegreatersubsidiesfordisadvantagedcommunities.

FORMOREINFORMATION

Moreinformationcanbefoundonlineat:http://www.epa.gov/cwsrfCleanWaterStateRevolvingFundRegionalandStateContactshttp://water.epa.gov/grants_funding/cwsrf/contacts.cfmProgramContactGeorgeAmesU.S.EnvironmentalProtectionAgencyPhone:(202)564-0661Email:[email protected]


EPACWSRFCaseStudy

CWSRFCASESTUDY:StruthersWaterPollutionControlFacility

PowersUpwithMethaneGas

TheCityofStruthersreceived$5.4millioninAmericanRecoveryandReinvestmentAct(ARRA)fundingfromtheOhioEnvironmentalProtectionAgency’sCleanWaterStateRevolvingFundprogramforaprojectthatwillusemethanegasproducedattheStruthersWaterPollutionControlFacilitytopowerunittreatmentprocessesandsignificantlyoffsetthefacility’senergyfootprint.TheprojectreceivedARRAGreenProjectReserve(GPR)fundingundertheEnergyEfficiencycategory,andtheentireamountofloanprincipalwillbeforgiven.TheStruthersWaterPollutionControlFacilityservesapopulationofover25,000peopleinthecitiesofStruthersandPolandandportionsofBoardmanTownship,andtreatsanaverageof4.5milliongallonsofwastewaterperday.Anaerobicdigestiongeneratesapproximately94.9thousandcubicfeetofmethanegasperdayasaby-productofthetreatmentprocess,someofwhichwasalreadybeingusedtogeneratetheheatrequiredforthesludgetreatmentprocess,offsettingsomeofitsnaturalgasconsumption.However,theexcessmethanewasbeingflaredoffintotheatmosphere.TheARRA-fundedprojectallowsStrutherstomakeuseofthisenergysourcetoprovidepowerforthetreatmentfacility’soperationsthroughtheimplementationofacombinedheatandpower(CHP)system.TheCityofStrutherstookadvantageofARRAfundingtocapitalizeontheopportunitytosignificantlyreduceitsenergyfootprintandrealizesubstantialoperatingcostsavings.TheprojectisanticipatedtosaveStruthersandnearbyMahoningCounty,whichsubsidizes64.5percentofthecostoftreatingflowsfromunincorporatedareas,about$17,000permonthinelectricitycostsand$9,000permonthinnaturalgascosts–over$300,000inannualenergycostsavings.Atthesametime,thefacility’scarbonfootprintwillbesignificantreduced.Methaneisapotentgreenhousegascapableoftrapping20timesmoreheatintheatmospherethancarbondioxide,whichmakesCHPtechnologyanattractiveenergyoptionforwastewatertreatmentfacilitiesasitextractsmethanegasoutofwaste,keepingitoutoftheopenairenvironment.Theenergythatitproducesisconsideredcarbonneutral.ACHPsystemcanproducegreenpoweratcostsbelowtheretailmarketrateandenhancethereliabilityofafacility’spowersource.


ARRAfundswereusedtoconstructafilteredmethanecogenerationsystemdesignedtocaptureandutilizetheexcessmethanegastogenerateelectricityandheatforthetreatmentfacility.Thisprojectincorporatestwo500kWmethanegasgeneratorsthatwillbesufficienttosupplybetween60to70percentofthetreatmentfacility’spowerdemand.Asludgethickenerandupgradestothegascompressorwillmakeadditionalmethanegasavailableforconversion.Twobuildingswereconstructedtohousethemethanegasgeneratorsandthesludgethickener.Struthers’utilitymanagershopetoeventuallypower100percentofthefacilitywithCHPtechnology.Inall,thisprojectwillincreasethevolumeofvolatilesolidsdestructionbyatleast30percent,andthetotalamountofmethanethatwillbecapturedwillbesufficienttogenerateapproximately1000kWhofelectricityperday.AtagroundbreakingceremonyheldonJune4,2010fortheStruthersWaterPollutionControlFacilityCHPproject,CountyCommissionerAnthonyTraficanticommented,“Thisprojectsavesthecountyandcityhundredsofthousandsofdollarsinoperating,maintenance,andutilitycosts.”Indeed,thefinancialassistanceaffordedtothecityofStruthersthroughARRAhasnotonlyprovidedafinancialbenefit,butitcreatedbetween30and40jobs,andsetaprecedentforothergreenprojectsinthefutureinStruthers.FormoreinformationpleasecontacttheOhioWaterPollutionControlLoanFundProgram:http://www.epa.ohio.gov/defa/wpclf_new.aspx


EPADrinkingWaterStateRevolvingFund

DESCRIPTION

DrinkingWaterStateRevolvingFund(DWSRF)programssupportthemosturgentdrinkingwater-relatedpublichealthneedsfromsourcetotap,focusingonprojectsthatprovidecommunitieswiththegreatestpublichealthimprovement.Theprogramalsoemphasizesprovidingfundstosmallanddisadvantagedcommunitiesandtoprogramsthatencouragepollutionpreventionasatoolforensuringsafedrinkingwater.ThroughtheDWSRFprogram,eachstateandPuertoRicomaintainrevolvingloanfundstoprovideindependentandpermanentsourcesoflow-costfinancingforawiderangeofpublichealthprotectionprojects.FundstoestablishorcapitalizetheDWSRFprogramsareprovidedthroughfederalgovernmentgrantsandstatematchingfunds(equalto20percentoffederalgovernmentgrants).Today,all50statesandPuertoRicoareoperatingsuccessfulDWSRFprograms.DWSRFprogramsoperatemuchlikeenvironmentalinfrastructurebanksthatarecapitalizedwithfederalandstatecontributions.DWSRFmoniesareloanedtocommunitiesandloanrepaymentsarerecycledbackintotheprogramtofundadditionalpublichealthprotectionprojects.Therevolvingnatureoftheseprogramsprovidesforanongoingfundingsourcethatwilllastfarintothefuture.Keyfeaturesoftheprograminclude:

• LowInterestRates,FlexibleTermsDWSRFprogramssubsidizeprojectstoimproveaffordabilityforborrowers.Manyborrowersreceiveloanswithinterestratesbelowmarketrates,someaslowaszeropercent.In2015,theDWSRFofferedanaverageinterestrateof1.7percentversusthemarketrateof3.8percent.DWSRFprogramscanfund100percentoftheplanningdesign,andconstructioncostandprovideflexiblerepaymenttermsupto30yearsfordisadvantagedcommunities.

• OptionalSet-Asides

UniquetotheDWSRF,statescansetasideaportionoftheircapitalizationgrants(upto31percent)tosupportactivitiesthatarenecessarytoensuretheavailabilityofsafeandaffordabledrinkingwater.ActivitiescanincludeassistingwatersystemsthatareapplyingforDWSRFloans,strengtheningandsustainingstatedrinkingwaterprograms,improvingsourcewaterprotection,providingdirecttechnicalassistancetosmallwatersystems,andevenconductingwaterandenergyefficiencyaudits.


• TransferAuthorityAstatemaytransferanamountequalto33percentoftheDWSRFcapitalizationgrantbetweentheCWSRFtotheDWSRFprograms.

• AdditionalSubsidyInrecentyears,aportionofeachstate’sDWSRFfederalcapitalizationgranthasbeenprovidedintheformofprincipalforgiveness,grants,ornegativeinterestloans.

• GreenProjectReserve(GPR)Inrecentyears,totheextenteligibleprojectsareavailable,aportionofeachstate’sfederalcapitalizationgranthasbeenprovidedtowaterefficiency,energyefficiency,greeninfrastructure,andotherenvironmentallyinnovativeprojects.Currently,fundingtheGPRisdiscretionaryfortheDWSRFprograms.Projectstypicallyincludeenergyefficiencyupgradesandwaterlossreduction.


UndertheDWSRF,stateshaveawiderangeofoptions.Statesmaychoosefromavarietyofassistanceoptions,includingloans,refinancing,purchasing,orguaranteeinglocaldebtandpurchasingbondinsurance.Statescanalsosetspecificloanterms,includinginterestrates—fromzeropercenttomarketrate—andrepaymentperiodsupto30yearsfordisadvantagedcommunities.Stateshavetheflexibilitytotargetresourcestotheirparticularpublichealthneedswithinthreebroadprojectpriorities:publichealthprotection;compliancewithdrinkingwaterstandards;andaffordableaccesstodrinkingwater.EachstatepreparesanIntendedUsePlan(IUP)initsannualapplicationforacapitalizationgrant.IntheIUP,thestatewilllistallthepotentialprojectstheyplantofund,andranktheminpriorityorderthroughascoringsystemthattheydevelopbasedonthethreebroadprogrameligibilities.Bypassproceduresarealsoputinplaceforthoseprojectsnotreadytoproceedtoconstruction.Stateshaveagoalofproviding15percentofthefundtosmallsystems.In2015,71percentofallloans(30percentoffunding)weremadetocommunitieswithpopulationslessthan10,001.Inaddition,somestatesprovidespecializedassistanceforcommunitiesthataredisadvantagedorexperiencefinancialhardship.Thesestatesmightofferlowerorno-interestloans,principalforgiveness,orgrantstoprovidegreatersubsidiesfordisadvantagedcommunities,aswellas30yearloanterms.


FORMOREINFORMATIONMoreinformationcanbefoundonlineat:www.epa.gov/drinkingwatersrfDrinkingWaterStateRevolvingFundProgramOperationsManual:http://nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=P1007ZKN.txtProgramContactNickChamberlain,ActingDWSRFTeamLeadU.S.EnvironmentalProtectionAgencyPhone:(202)564-1871Email:[email protected]


EPADWSRFCaseStudy

DWSRFCASESTUDY:DrinkingWaterStateRevolvingFund

“ProtectingthePlanetandPocketbook”

TwoEPA-fundedprojectsataWilmington,Delawarewaterfiltrationplantarereducingtheequivalentof71carsworthofgreenhousegases,generatingnearly500,000kWhinannualenergysavingsandcuttingcostsby$876,000ayear.TheprojectswerefundedthroughtheDelawareDepartmentofHealthandSocialServiceswithnearly$9millioninlow-interestloansfromEPA’sDrinkingWaterStateRevolvingFund,halfofwhichdidnotrequirerepayment.TheimprovementsatthePorterStreetWaterFiltrationPlantincludetheinstallationofrowsofsolarpanelsandtheplacementofanewpumpstationtoreducecostsassociatedwithdrawingrawwaterforprocessing.Thesolarpanels,orphotovoltaicarrays,providepowerthroughtheplant’selectricaldistributionnetwork.Thegreenenergycutsgreenhousegasesbyalmost400metrictonseachyearandgeneratesanaverageof$116,368inannualsavingsthroughreducedelectriccostsandthesaleofsolarcredits.Thenew“lowhead”pumpstationallowstheplanttodrawafullcomplementofwater–notjustthetopfourmilliongallons–fromitsonsite36milliongallonrawwaterreservoir.Whenitcouldonlyskimthetoplayer,theplantwasforcedtocontinuallypumpwatertothereservoirfromtheBrandywineRiverduringtheday–whenelectricratesarethehighest–tokeepupwithdrinkingwaterdemand.Theprojectsdemonstratehowacommunitycanmakeadifferencewithbothoffsettingitsgreenhousegasemissionsandreducingratepayercosts.InaMarch2016analysisofthetwoprojects,theKashSrinivasanGroupreportedthat,“theresultstodatehavemettheoperationalandfinancialperformanceexpectations.”


• 7(A)LoanProgram

• 504LoanProgram

• SmallBusinessInvestmentCompany

� SBACaseStudy


UNITEDSTATESSMALLBUSINESSADMINISTRATION


SBA7(A)LoanProgram

DESCRIPTION

SBA’s7(a)loanguarantyprogramisnamedafterSection7(a)oftheSmallBusinessActof1953,whichauthorizesSBAtoprovidebusinessloanstoAmericansmallbusinesses.Proceedsfrom7(a)loansmaygenerallybeusedtoestablishanewbusinessortoassistintheoperation,acquisition,orexpansionofanexistingbusiness.Specificusesincludetheacquisitionofland(bypurchaseorlease);siteimprovements;thepurchase,conversion,expansion,orrenovationofoneormoreexistingbuildings;theconstructionofoneormorenewbuildings;theacquisitionorinstallationoffixedassets;topurchaseinventory,supplies,andrawmaterials;tofinanceworkingcapital;andtorefinancecertainoutstandingdebts.


SBAgenerallydoesnotspecifywhatbusinessesareeligible.Rather,theagencyoutlineswhatbusinessesarenoteligible.However,therearesomeuniversallyapplicablerequirements.Tobeeligibleforassistance,businessesmust:

• Operateforprofit;• Besmall,asdefinedbySBA;• Beengagedin,orproposetodobusinessin,theUnitedStatesorits

possessions;• Havereasonableinvestedequity;• Usealternativefinancialresources,includingpersonalassets,before

seekingfinancialassistance;• Beabletodemonstrateaneedfortheloanproceeds;• Usethefundsforasoundbusinesspurpose;and,• NotbedelinquentonanyexistingdebtobligationstotheU.S.

government.Ifyouareawardeda7(a)loan,youcanusetheloanproceedstohelpfinancealargevarietyofbusinesspurposes.However,thereareafewrestrictions.Forexample,proceedscan’tbeusedtobuyanassettoholdforitspotentialincreasedvalueortoreimburseanownerforthemoneytheypreviouslyputintotheirbusiness.Basicusesfor7(a)loanproceedsinclude:

• Toprovidelong-termworkingcapitaltousetopayoperationalexpenses,accountspayableand/ortopurchaseinventory;


• Short-termworkingcapitalneeds,includingseasonalfinancing,contractperformance,constructionfinancingandexporting;

• Revolvingfundsbasedonthevalueofexistinginventoryandreceivables,underspecialconditions;

• Topurchaseequipment,machinery,furniture,fixtures,suppliesormaterials;

• Topurchaserealestate,includinglandandbuildings;• Toconstructanewbuildingorrenovateanexistingbuilding;• Toestablishanewbusinessorassistintheacquisition,operationor

expansionofanexistingbusiness;and,• Torefinanceexistingbusinessdebt,undercertainconditions.

SBAloanscannotbeusedforthesepurposes:

• TorefinanceexistingdebtwherethelenderisinapositiontosustainalossandSBAwouldtakeoverthatlossthroughrefinancing;

• Toaffectapartialchangeofbusinessownershiporachangethatwillnotbenefitthebusiness;

• Topermitthereimbursementoffundsowedtoanyowner,includinganyequityinjectionorinjectionofcapitaltocontinuethebusinessuntiltheSBA-backedloanisdisbursed;

• Torepaydelinquentstateorfederalwithholdingtaxesorotherfundsthatshouldbeheldintrustorescrow;or,

• ForapurposethatisnotconsideredtobeasoundbusinesspurposeasdeterminedbySBA.

Ifyouareunsurewhetherornotyouranticipateduseoffundsisallowed,checkwithyourSBA-approvedlender:QualifiedSBALendershttp://www.sba.gov/category/lender-navigation/search-sba-lenders?select=proximity

FORMOREINFORMATION

Moreinformationcanbefoundonlineat:http://www.sba.gov/category/navigation-structure/loans-grants/small-business-loans/sba-loan-programs/7a-loan-programProgramContactDiannaSeabornChief,7(A)LoanProgram,[email protected]


SBA504LoanProgram

DESCRIPTION

TheCertifiedDevelopmentCompany(CDC)/504LoanProgramprovidesfinancingformajorfixedassetssuchasequipmentorrealestate.Itcanbeusedtofinanceconstructionofnewfacilitiesortomodernize,renovate,orconvertexistingfacilities.Energyefficiencyupgradestobuildingsormanufacturingfacilitiesareeligibleprojects.


TobeconsideredforaCDC/504loanapplicantsmustmeetcertaineligibilityrequirements.Applicantsmust:

• Operateasafor-profitcompany;• Dobusiness(orproposeto)intheUnitedStatesoritspossessions;• Haveatangiblenetworthlessthan$15millionandanaveragenet

incomelessthan$5.0millionaftertaxesfortheprecedingtwoyears;• Notengageinspeculationorinvestmentinrentalrealestate;• Beaneligibletypeofbusiness(seehttp://www.sba.gov/content/sba-

financial-assistance-eligibilityforeligibilitydescriptions);• Useproceedsforanapprovedpurpose(see

http://www.sba.gov/content/sba-financial-assistance-eligibilityforapprovedpurposes);

• Nothavefundsavailablefromothersources(SBAdoesnotextendfinancialassistancetobusinesseswhenthefinancialstrengthoftheindividualownersorthecompanyitselfissufficienttoprovideallorpartofthefinancing);

• Beabletorepaytheloanontimefromtheprojectedoperatingcashflowofthebusiness;

• Meetcharacterrequirements,baseduponresponsestoa"StatementofPersonalHistory"fromtheprincipalsofeachapplicantfirm,whichismeanttogatherinformationconcerninghistoricalwillingnessandabilitytopaydebtsandtoabidebythelawsoftheircommunity;

• Haverelevantmanagementexpertise;and,• Presentafeasiblebusinessplan.

A504loancanbeusedfor:

• Theconstructionofnewfacilitiesormodernizing,renovatingorconvertingexistingfacilities;

• Thepurchaseoflong-termmachineryandequipment;


• Thepurchaseofland,includingexistingbuildings;• Thepurchaseofimprovements,includinggrading,street

improvements,utilities,parkinglotsandlandscaping;or• Limiteddebtrefinancing.

A504loancannotbeusedfor:

• Workingcapitalorinventory;or• Speculationorinvestmentinrentalrealestate.

FORMOREINFORMATION

Moreinformationcanbefoundonlineat:http://www.sba.gov/category/navigation-structure/loans-grants/small-business-loans/sba-loan-programs/real-estate-and-eqProgramContactLindaReillyChief,[email protected]


SBASmallBusinessInvestmentCompany

DESCRIPTION

TheSmallBusinessInvestmentCompany(SBIC)ProgramisoneofmanyfinancialassistanceprogramsavailablethroughtheSBA.ThestructureoftheprogramisuniqueinthatSBICsareprivatelyownedandmanagedinvestmentfunds,licensedandregulatedbySBA,thatusetheirowncapitalplusfundsborrowedwithanSBAguaranteetomakeequityanddebtinvestmentsinqualifyingsmallbusinesses.TheSBAdoesnotinvestdirectlyintosmallbusinessthroughtheSBICProgram.Thereareover300licensedSBICsinoperationtoday.SBICspursueinvestmentsinabroadrangeofindustriesandgeographies.SomeSBICsinvestinaparticularfieldorindustryinwhichtheirmanagementhasexpertise,whileothersinvestmoregenerally.TheSBICprogramcurrentlyoffersitslicenseesaccesstodebtcapitalwithaten-yearmaturityandsemi-annualinterestpayments.ThestructureofthisfinancingmeansthatmostSBICsfocusprimarilyonprovidingsmallbusinesseswithdebtordebtwithequityfeatures.SBICswilltypicallyfocusoncompaniesthatarematureenoughtomakecurrentinterestpaymentsontheinvestmentsothat,inturn,theSBICcanmeetitsinterestobligationstotheSBA.


OnlycompaniesdefinedbySBAas“small”areeligibleforSBICfinancing.Generally,theSBICProgramdefinesacompanyas“small”whenitsnetworthis$19.5millionorlessanditsaverageaftertaxnetincomeforthepriortwoyearsdoesnotexceed$6.5million.Allofthecompany’ssubsidiaries,parentcompaniesandaffiliatesareconsideredindeterminingthesizestandardandforcertainindustriesalternativesizestandardsmayapply.DetailsregardingregulatorysizelimitationsareincludedintheSmallBusinessSizeRegulations,whichcanbefoundonlineat:http://www.sba.gov/content/small-business-size-regulations.SBICsmaynotinvestin:otherSBICs,financeandinvestmentcompaniesorfinance-typeleasingcompanies,unimprovedrealestate,companieswithlessthan51percentoftheirassetsandemployeesintheUnitedStates,passiveorcasualbusinesses(thosenotengagedinaregularandcontinuousbusinessoperation);companieswhichwillusetheproceedstoacquirefarmland;orsmallconcernswhoseprimarybusinessactivityisdeemedcontrarytothepublicinterest.


FORMOREINFORMATIONMoreinformationcanbefoundonlineat:http://www.sba.gov/sites/default/files/Program%20Overview%20-%20FY%202013_0.pdfSmallBusinessInvestmentCompanyDirectory:http://www.sba.gov/content/all-sbic-licensees-stateProgramContactSamuelJ.Boyd,Jr.ChiefInvestmentOfficer&DirectorofProgramDevelopmentOfficeofInvestmentandInnovation|[email protected]


SBACaseStudy

SBACASESTUDY:DenverSmallBusinessUtilizesCertified

DevelopmentCompany(CDC)/504LoanProgramtoFinanceanEnergyEfficientNewCorporateOffice

InSeptember2013RockyMountainExcavating,Inc.(RME)utilizedtheSBACDC/504LoanprogramtofinanceitsexpansionintoanewenergyefficientbuildinginCastleRock,CO.RMEisaservice-disabled-veteran-ownedsmallbusiness(SDVOSB)andcertified8(a)company,thatprovidesgeneralcontracting,constructionmanagement,anddesign-buildservicesthroughoutColorado,NewMexico,Wyoming,andtheentireRockyMountainregion.CommunityEconomicDevelopmentCompanyofColorado(CEDCO)wastheCDCthathelpedRMEfinancethisproject.CDCsarenon-profitcorporationscertifiedandregulatedbytheSBAthatworkwithparticipatinglenderstoprovidefinancingtosmallbusinesses.TheprojectwasfinancedbyVectraBankColorado.RME’sconstructioncostswereslightlyhigherthanatraditionallybuiltbuilding,buttheyexpecttorecoverthecostoftheirenergyefficiencyimprovementsbysavingover20percentonenergycostscomparedtosimilarfacilities.SomeexamplesofenergyefficiencyandsustainabilitymeasuresRMEutilizedinclude:

• Additionalinteriorandexteriorinsulation;• EnergyefficientLow-Ewindowsandwindowfilms;• Heatresistantwindowshades;• Lightingandcontrolsstrategiesdesignedwithenergyefficiencyin

mind;• EnergyefficientHVACequipment;• Recycledmaterials,includingasphaltandconcrete;and,• Maintenanceshopheatedbyasecondaryhigh-efficiencyrecycledoil

unitthatissoefficientthemainheateralmostneverruns.The504LoanthatRMEutilizedisanSBAfinancingprogramestablishedtotargetcompaniesintheirgrowthcycletocreatejobs,expandthetaxbase,andimproveAmericancommunities.504Loansprovidelong-termfixedassetfinancingtosmallbusinessesforthepurchaseorimprovementofland,buildings,andmajorequipmentpurchases,inanefforttofacilitatethecreationofjobsandlocaleconomicdevelopment.


A504loancanbeusedfor:

• Thepurchaseofland,includingexistingbuildings;• Thepurchaseofimprovements,includinggrading,street

improvements,utilities,parkinglotsandlandscaping;• Theconstructionofnewfacilitiesormodernizing,renovatingor

convertingexistingfacilities;and• Thepurchaseoflong-termmachineryandequipment.

SBAandDOEarecurrentlycollaboratingonaprojectwithArgonneNationalLaboratoryandtheNationalRenewableEnergyLaboratorytohelpsmallbusinessesmoreeffectivelyutilizeSBALoanProgramsforenergyefficiencyprojects.Formoreinformation:LindaReillyChief,504LoanProgram202-205-9949linda.reilly@sba.govFormoreinformationaboututilizingSBA’s504LoanProgramforenergyefficiency,pleasevisityourlocalSBADistrictOfficeat:http://www.sba.gov/tools/local-assistance/districtofficesorSmallBusinessDevelopmentCenterathttp://www.sba.gov/tools/local-assistance/sbdc


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