Rural Energy For America Loan Guarantee Program

ANNOUNCEMENT: The program is designed to help agricultural producers and rural small businesses reduce energy costs and consumption and help meet the Nation's critical energy needs. The REAP program helps eligible applicants install renewable energy systems, make energy efficiency improvements, and conduct energy audits and renewable energy development assistance. FUNDING: 57.8 million in authority currently, with possible additional FY 2014 funding. IMPORTANT DATES: Loan applications due 07/31/14 by 4:30pm EST. ELIGIBILITY: The program is open to agricultural producers and rural small businesses, including most rural electric cooperatives. To be eligible, you must be actively involved in the business and the proposed project.TECHNOLOGY AREAS: "ENERGY EFFICIENCY": "Any projects that save energy (electricity, propane or natural gas, or diesel fuel) are eligible. Examples include dairy pumps and cooling systems, weatherization of poultry houses, efficient lighting and ventilation, irrigation equipment, industrial motors and supermarket refrigeration systems. Projects that save fuel used in mobile sources (tractors, trucks) are not eligible. "RENEWABLE ENERGY: "Renewable energy systems can include small and large wind turbines, active or passive solar energy systems, geothermal heating and cooling, anaerobic digesters using food or livestock waste, systems using or producing biomass fuels, or facilities producing ethanol or biodiesel.APPLICATION COMPONENTS: Applicants submit online or through USDA extension office: "TABLE OF CONTENTS""PROJECT SUMMARY": Title of Project; Borrower Eligibility; Project Eligibility; Operation Description"FINANCIAL INFORMATION FOR SIZE DETERMINATION": "Financial size will determine the number of points the applicant is eligible for - for scoring criteria #6 - Small agricultural producer - or - Very Small Business."MATCHING FUND DOCUMENTATION: "A spreadsheet identifying sources of matching funds, amount, and status of matching funds; Attachment of any correspondence between applicant and matching fund source."SELF EVALUATION SCORE: "Score based on quantity of energy produced, replaced, or saved; environmental benefits; commercial availability; technical merit; interest rate; small agricultural producer or very small business; simplified application; previous grantees and borrowers; simplified payback; and state director and administrator priorities and points. ""ENERGY AUDIT: "The report will provide detailed project cost and savings information with a high level of confidence sufficient for major capital investment decisions. It will estimate costs, expected energy savings from the subject improvements, and dollars saved per year. The report will estimate weighted-average payback period in years.""TECHNICAL REPORT: "Qualification of the project team; Agreements and Permits; Energy or Resource Assessments; Design and Engineering; Project Development Schedule; Project Economic Assessment; Equipment Procedure; Equipment Installation; Operations and Maintenance; Dismantling and Disposal of project components.Business-Level Feasibility Study"FORM 4279-1 "APPLICATION FOR LOAN GUARANTEE" WITH: Business Plan; Form 10-K "Annual Report Pursuant to Section 13 or 15D of the Act of 1934;" Architectural or Engineering Plans (if applicable); Cost estimates and forecast of contingency funds to cover cost increases or project changes; Pending legal action"Form 1940-20 "Request for Environmental Information" and AttachmentsPersonal Credit Reports Appraisals"COMMERCIAL CREDIT REPORTS""CURRENT PERSONAL AND CORPORATE FINANCIAL STATEMENTS OF ANY GUARANTORS.""FINANCIAL INFORMATION: "Three year historical income statement and balance sheet; current year income statement and balance sheet; start-up plus three years pro-forma income statement, balance sheet, and cash flow."LENDER'S COMPLETE WRITTEN CREDIT ANALYSIS""PROPOSED LOAN AGREEMENT"EVALUATION CRITERIA: Applications will be reviewed based on a 125 points scale. Quantity of energy produced, replaced, or saved." 15 points max."Environmental benefits. "10 points max."Commercial availability. "10 points max."Technical merit. "35 points max."Interest rate. "10 points max. "Small agricultural producer or very small business. "10 points max. "Simplified application. 5 points max.Previous grantees and borrowers. "5 points max."Simplified payback. "15 points max."State director and administrator priorities and points." 10 points max. " The post Rural Energy for America Loan Guarantee Program appeared first on McBee Strategic.