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Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program

Biorefineries 2. Process the advanced biofuel What does this into renewable chemicals or other Biorefineries convert renewable biomass biobased products or program do? into advanced biofuels, renewable chemicals, and biobased products. 3. Use the biofuel as a fuel for heat The Biorefinery, Renewable or power in its processes or to • Advanced Biofuels: Produced generate electricity. Chemical, and Biobased Product from renewable biomass (other than corn kernel starch). Advanced Manufacturing Assistance biofuels are produced in a variety of Biobased Product Manufacturing Program (BAP), also known biorefineries using a variety Biobased product manufacturing as the Section 9003 Program, of feedstocks. facilities manufacture renewable Examples include biofuels derived chemicals and other biobased provides loan guarantees to from cellulose and waste materials, outputs from biorefineries into assist in the development of crops and crop residue, oil seeds end-user products. advanced biofuels, renewable and animal fat, diesel-equivalent Examples of end-user products include fuel, biogas, and butanol. chemicals, and biobased products fertilizers, pharmaceuticals, pesticides, • Renewable Chemicals: A monomer, plastics, lubricants, and oils. manufacturing facilities. polymer, plastic, formulated product The facility may be a stand-alone or chemical substance produced manufacturing facility or it may be from renewable biomass. Renewable part of a biorefinery. The feedstock or chemicals can be produced in a inputs into the manufacturing facility are variety of biorefineries. outputs from a biorefinery (not required Examples include but are not limited to be an advanced biofuel biorefinery.) to succinic acid, pentanes and Eligible projects include the pentenes, organic acids, furfural, development, construction, and sorbitol, and acetone. retrofitting of technologically new • Biobased Products: Produced commercial-scale processing and from renewable biomass, biobased manufacturing equipment and products are commercial or required facilities that will be used industrial products other than food to convert renewable chemicals and or feed. other biobased outputs into end-user products on a commercial scale. Eligible projects include the development, construction, or retrofitting of commercial-scale biorefineries using eligible technologies. The biorefinery must produce advance biofuel and may:

1. Sell the advanced biofuel that it produces as a biofuel, renewable chemical, or for other non-fuel usage Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program

Lender Eligibility Requirements • Applications with lower priority What governs this program? scores not invited to Phase 2 will be • An eligible lender is any Federal or • Code of Federal Regulation, carried forward and compete for one State-chartered bank, Farm Credit 7 CFR 4279, Subpart C and additional review cycle. Bank, other Farm Credit System 7 CFR 4287, Subpart D, and institution with direct lending Phase 1 Applications Include: continued in the Agricultural Act of authority, or Bank for Cooperatives. 2014 (2014 Farm Bill)(Pub. L. 113-79). Project summary, application form, • The Lender must demonstrate financial statements, financial model, • This program is authorized under that it meets the FDIC definition feasibility study, business plan, priority 7 U.S.C. 8103. of Well Capitalized at the time of scoring information, intergovernmental application. consultation, and any other information determined by the agency to be Project Funding and necessary to evaluate the application. Guaranteed Loans Phase 2 Applications Include: • This program provides loan Technical assessment/technical guarantees for up to 80% of the report, environmental assessment, total eligible project costs up to lender’s analysis/credit evaluation/ $250 million. supporting materials, appraisals, • The maximum total Federal lender’s proposed loan agreement, participation (9003 program estimated timing of loan closing, guaranteed loan plus all other credit rating, updates to application Federal loans or grants) is 80% of materials as appropriate, and other the total eligible project cost. information determined by the agency • The borrower and other principals to be necessary to evaluate the involved in the project must make a application including any contracts significant cash equity contribution and agreements. investment in the project. Learn More About the Section 9003 Application Process Program at: The Section 9003 Program uses a rd.usda.gov/programs-services/ 2-phase application process. biorefinery-assistance-program

• There are two application cycles [email protected], each fiscal year. Applications may or 202-720-0410 be submitted at any time. • Letter of Intent deadlines are September 1 and March 2. • Application deadlines are October 1 and April 1. • Applications will be evaluated for eligibility, technical and financial feasibility, and sufficient project NOTE: Because citations and other information may be subject to change, equity. Applicants with the highest please always consult the program instructions listed in the section above priority scoring may be invited to titled “What Governs This Program?” You may also contact your local office for assistance. You will find additional forms, resources, and program information at submit Phase 2 applications. rd.usda.gov. USDA is an equal opportunity provider, employer, and lender.

Last Updated January 2020