§8813 Insured loans

Summary

The Secretary of Agriculture can make insured loans up to $1,000,000 per project to build small-scale biomass energy projects, subject to sections 8812 and 8817. A loan cannot be for more than 90% of the project's estimated construction cost. The Secretary sets the interest rate using current average marketable U.S. government yields for similar loan terms plus up to 1%, rounded to the nearest one‑eighth of one percent. If construction costs rise later, an extra loan may be made for up to 10% of the original estimated total costs if the applicant requests it. Loans are made using the Agricultural Credit Insurance Fund (section 309) or the Rural Development Insurance Fund (section 309A), only as Congress provides money. The total loans and administrative costs cannot exceed the amount Congress transferred under section 8803, and operating costs must be reimbursed to those Funds from the appropriations under section 8803. Insured loan — a loan that is made, sold, and insured. Applicants must prove they cannot get enough credit elsewhere at reasonable rates and terms, considering prevailing private and cooperative loan terms for similar projects.