There are no specific matching requirements for this program; however, the maximum amount of a loan is 80 percent of the reasonably anticipated eligible project costs. Projects must be able to attract public and/or private investment to fund project costs not covered by the loan, as evidenced by binding commitments and/or expressions of interest from other potential funders.
Just prior to financial close, the applicant will be required to wire a $3 million financing fee to the U.S. Department of the Treasury (UST). After financial close, responsibility for managing the loan will transfer to the Loan Programs Office's (LPO's) Portfolio Management Division (PMD). PMD will manage the loan from construction through the life of the loan and will charge a maintenance fee to the project of up to $500,000 per year. PMD will also appoint a collateral agent to assist with loan servicing and to act as the funding agency's agent in certain matters. Fees charged by the collateral agent will be paid by the project. PMD may also maintain advisors such as a lender's engineer and counsel, environmental and permitting specialists, and market and financial advisors. Such costs may also be required to be paid by the project.
An unspecified amount of funding is available to support secured or "direct" loans or loan guarantees through this program. The maximum amount of a loan is 80 percent of the reasonably anticipated eligible project costs. The total project costs must be greater than $100 million.
Applicants should expect at least 12 months between submitting a letter of interest to the funding agency and achieving financial close on the loan. Projects must be reasonably expected to commence the construction contracting process in no more than 90 days after financial close.
The interest rate on loans will be set in accordance with Section 999C of the CIFIA subtitle of the Infrastructure Investment and Jobs Act (IIJA) and as set forth in the conditional agreement.
The final maturity date of a loan will be the earlier of the date that is 35 years after the date that the project reaches substantial completion and the date that is the end of the useful life of the asset, as validated by the funding agency's independent engineer.
The funding agency will establish a loan amortization schedule for each loan based on the projected cash flow from project revenues and other repayment sources over the duration of the loan. Scheduled loan repayments of principal or interest must commence not later than five years after the date of substantial completion of the project.
Ineligible costs include:
- Fees and commissions charged to the borrower, including finder's fees, for obtaining federal or other funds
- Parent corporation of other affiliated entity's general and administrative expenses, and non-eligible project-related parent corporation or affiliated entity assessments, including organizational expenses
- Goodwill, franchise, trade, or brand name costs
- Dividends and profit sharing to stockholders, employees, and officers
- Research, development, and demonstration costs of readying any technology used by the project for deployment
- Costs that are excessive or are not directly required to carry out the project, as determined by the funding agency
- Expenses incurred after startup, commissioning, and shakedown of the facility, or, in the funding agency's discretion, any portion of the facility that has completed startup, commissioning, and shakedown
- Operating costs