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Top 10 FAQs

 Is my project eligible for a DOE loan guarantee?
The Department considers project applications that have been submitted in compliance with an open solicitation.  To decide if a project is eligible for a DOE loan guarantee, please review the Loan Guarantee Program's guiding documents, including Title XVII of the 2005 Energy Policy Act and the Final Rule. Further eligibility requirements can be found in each specific solicitation, as well as any additional guidance posted on the Loan Programs Office website from time to time.
 How do I apply for a loan guarantee?
All open technology-specific solicitations may be found here: Solicitations. Please review the requirements, deadlines and closing dates for each solicitation before applying. While all applicants for loan guarantees are encouraged to apply using the online application portal, applicants to any previously issued open solicitations can still apply for loan guarantees via Fed Connect or Express Mail. Applicants who have already submitted Part I applications and are invited to submit Part II applications should continue to do so by sending their application via Fed Connect or Express Mail.
 Are there any items that require a long lead time to prepare?
 If so, what are they?There are several detailed reports that must be submitted with Part II of each application. The applicant should prepare an environmental report for the project’s site and obtain an independent engineering report for the proposed project. These activities may take up to 12 weeks.
 What is credit subsidy cost?
Credit subsidy cost is a reserve established by the U.S. government to cover the risk of estimated shortfalls in loan repayments. It was established by the Federal Credit Reform Act of 1990 (“FCRA”) and represents the net present value of the estimated long-term cost to the U.S. government of the loan guarantee. Credit subsidy cost is primarily influenced by two key variables:    
1. Probability of default; and    
2. The “recovery” after default.

These variables are used to “risk adjust” the borrower’s principal and interest payments to the government, and provide an estimate of payment shortfalls.

Section 1702(b) of Title XVII provides that DOE must receive either an appropriation for the credit subsidy cost of a loan guarantee or, in lieu of an appropriation, a cash payment of such cost directly from the applicant.

 Prior to the submission of an application (or any part of an application) under Title XVII of the Energy Policy Act of 2005 and the Final Rule, are there any restrictions on communications between Loan Programs Office personnel and potential applicants and their advisors?
Loan Programs Office personnel may have discussions and meetings with potential applicants and their representatives and advisors, but there are restrictions on the content of the discussions. Loan Programs Office personnel can provide guidance that is publicly available to all other potential applicants and their representatives and advisors. However, except as noted below, personnel cannot discuss specific projects prior to the submission of an application. Any discussion of a potential application must be limited to logistical guidance and publicly available application requirements. The NEPA team of the Loan Programs Office can discuss specific projects only with respect to NEPA issues.
 Is there an application form that must be used to apply for an ATVMLP loan?
No, applicants are required to submit the information as set forth in §611.101 of the Interim Final Rule.
 How will the ATVMLP evaluation process work?The evaluation process will include four steps. In the first step, an application will be reviewed to see if it is substantially complete. If it is not DOE will notify the applicant what additional information it needs to provide DOE. Once an application is substantially complete, in the second step, the applicant and the project will be evaluated to determine if they are eligible for the ATVMIP. If they are not eligible, the application review process will end. If both the applicant and the proposed project are eligible, in the third step, the proposed project will be evaluated, potential terms and conditions of a loan will be developed and a decision will be made whether to make a loan. The fourth and final step is the negotiation and, if the negotiation is successful, the closing of the loan. The entire process will involve dialogue and exchange of information between the applicant and DOE in each step.
 To what extent can qualifying components and engineering integration be used in vehicles that are manufactured outside the United States?
The project for which funding is sought must be performed in the United States. Moreover, the advanced technology vehicle to which that project is related must be sold in the United States.
 Will borrowers that receive a loan guarantee under Title XVII be required to comply with the Davis-Bacon Act?
Yes, all projects involving construction work financed in whole or in part by a loan guaranteed under Title XVII are required to comply with the Davis Bacon Act. Specifically, Section 1702 of Title XVII was amended by Section 310 of the Energy and Water Development and Related Agencies Appropriations Act, 2010, P.L. No. 111-85, to add at the end the following new subsection (k):”WAGE RATE REQUIREMENTS.-All laborers and mechanics employed by contractors and subcontractors in the performance of construction work financed in whole or in part by a loan guaranteed under this title shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code. With respect to the labor standards in this subsection, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1257; 5 U.S.C. app.) and section 3145 of title 40, United States Code.”
 If my proposed project requires less than a $25 million loan, will it be cost-effective to participate in DOE’s Loan Guarantee Program given the amount of the fees?
The Department of Energy has offered conditional commitments for loan guarantees on projects less than $25 million. However, these kinds of projects are time and capital-intensive.  Currently there are no special provisions for small business participation in the loan programs.