The Rural Utilities Service of the Department of Agriculture has recently announced that, in certain circumstances, it is granting an exception to the $10 million limitation on the Business & Industry guaranteed loan program (B&I Program) in fiscal year 2011.
In FY 2012, however, the program will continue under the $10 million limitation in order to make the program available for more applicants in the future. The RUS’s position is that applying the limitation in FY 2012 will allow the program to “go farther.” Due to unprecedented interest in the program, the RUS wants to keep the limitation to target more small businesses and projects.
The B&I Loan Program is available for the following purposes:
- Business and industrial acquisitions
- Purchase of land, machinery and equipment
- Construction, enlargement or modernization
- Eligible fees and costs
- Educational or training facilities
- Tourist facilities
- Hotels/motels
- Pollution control or abatement
- Recreation facilities
- Working capital
- Refinancing when it is determined that refinancing is necessary to improve cash flow and create new or save existing jobs.
- Commercially available energy projects that produce biomass fuel or biogas.
AHC’s David Cook and Roland Hall have discussed the B&I Loan Program in previous presentations regarding ways to finance and develop energy projects, including renewable energy and energy efficiency projects. For example, last December, they addressed such programs at the World Energy Engineering Congress in Washington, D.C.
They will discuss similar programs at this year’s World Energy Engineering Congress. Topics will include “Developing Small Energy Projects: From Financing to Power Sales” and “Financing Alternatives for Commercial and Industrial Energy Efficiency Projects.”