CFR > Title 7 - Agriculture > SUBTITLE B—Regulations of the Department of Agriculture > CHAPTER XLII—RURAL BUSINESS-COOPERATIVE SERVICE AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE (parts 4274 to 4290) > PART 4280—LOANS AND GRANTS > SUBPART B—Renewable Energy Systems and Energy Efficiency Improvements Program (§4280.101 to §4280.200) > 4280.123—Guaranteed loan funding.

4280.123—Guaranteed loan funding.

(a) The amount of the loan that will be made available to an eligible project under this subpart will not exceed 50 percent of total eligible project costs. Eligible project costs are specified in paragraph (e) of this section.
(b) The minimum amount of a guaranteed loan made to a borrower will be $5,000, less any program grant amounts. The maximum amount of a guaranteed loan made to a borrower is $10 million.
(c) The percentage of guarantee, up to the maximum allowed by this section, will be negotiated between the lender and the Agency. The maximum percentage of guarantee is 85 percent for loans of $600,000 or less; 80 percent for loans greater than $600,000 up to and including $5 million; and 70 percent for loans greater than $5 million up to and including $10 million.
(d) The total amount of the loans guaranteed by the Agency under this program to one borrower, including the outstanding principal and interest balance of any existing loans guaranteed by the Agency under this program, and new loan request, must not exceed $10 million.
(e) Eligible project costs are only those costs associated with the items identified in paragraphs (e)(1) through (11) of this section, as long as the items are an integral and necessary part of the renewable energy system or energy efficiency improvement.
(1) Post-application purchase and installation of equipment (new, refurbished, or remanufactured), except agricultural tillage equipment, used equipment, and vehicles.
(2) Post-application construction or improvements, except residential.
(3) Energy audits or assessments.
(4) Permit and license fees.
(5) Professional service fees, except for application preparation.
(6) Feasibility studies and technical reports.
(7) Business plans.
(8) Retrofitting.
(9) Construction of a new energy efficient facility only when the facility is used for the same purpose, is approximately the same size, and based on the energy audit will provide more energy savings than improving an existing facility. Only costs identified in the energy audit for energy efficiency improvements are allowed.
(10) Working capital.
(11) Land acquisition.
(f) In determining the amount of a loan awarded, the Agency will take into consideration the following six criteria:
(1) The type of renewable energy system to be purchased;
(2) The estimated quantity of energy to be generated by the renewable energy system;
(3) The expected environmental benefits of the renewable energy system;
(4) The extent to which the renewable energy system will be replicable;
(5) The amount of energy savings expected to be derived from the activity, as demonstrated by an energy audit comparable to an energy audit under 7 U.S.C. 8105; and
(6) The estimated length of time it would take for the energy savings generated by the activity to equal the cost of the activity.