DOE launches new $30 billion loan guarantee round; includes $500 million for “cutting edge biofuel projects”
In Washington, US Energy Secretary Steven Chu announced up to $30 billion in new loan guarantees, funded partly through the Recovery Act and partly through 2009 appropriations. The lending authority includes up to $500 million in subsidy costs to support loans for cutting edge biofuel projects funded by the Recovery Act.
The solicitation is the seventh rounds of solicitations by the Department’s Loan Guarantee Program, which encourages the commercial use of new or improved energy technologies to help foster clean energy projects. Applications will be accepted over the next 45 days.
In addition, the DOE has streamlined its processes to accelerate these new loan solicitations, and is absorbing up to $3 billion in loan guarantee administration costs that were previously charged back to loan recipients. The DOE said that additional loan guarantee solicitations funded by the Recovery Act will be announced soon. More about the loan guarantee program here.
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jjp1168 | Jul 30, 2009 | Reply
I was told I was on an email list to receive notification as soon as the loan guarantee program was available for applications. Well guess what, no notification at all! Also, first I was told the application site would be open by the end of May 2009, didn’t happen! I keep hearing how this current administration wants to create new “green job,” however none of the funding which has been promised is making its way into the companies trying to create the jobs. Also, the DOE, USDA, DOC and other government agencies are wanting companies to come up with matching non-government funds for some of these grants/loans.
When it takes as long as it is taking to get funding from the government, most private investors are long gone. With the current economic crisis, banks are not providing loans for businesses and most banks are saying renewable energy is still an experimental process (even though it has been around for 20 years or more) so they do not have to loan funds in the technology. So, where are these matching funds supposed to come from?