DOE Loan Guarantee Program
The U.S. Department of Energy has a new program to guarantee loans to support the development of renewable energy projects. Lenders who meet the DOE's requirements for eligibility have been invited to submit applications for partial guarantees from the DOE for the financing of projects that will generate electricity or thermal energy, using commercial technology. The loans must be structured as traditional senior secured indebtedness, and the guaranteed amount will vary but is capped at 80% of the principal amount of the loan. The guarantees offered by the DOE are expected to support up to as much as $4-8 billion in lending to eligible projects. If you'd like to learn more about this program, my partners Ellen Bastier and Ferd Convery from Reed Smith's energy practice group have written a helpful summary of the program.
