Lender-applicants can apply to the Loan Programs Office under the Financial Institution Partnership Program (FIPP), which was introduced in October 2009 to help promote conventional renewable energy generation projects. The FIPP program leverages private sector lending and spurs investment, innovation and economic activity. FIPP was designed to expedite the loan guarantee process for renewable energy generation projects that use commercial technologies and to expand credit capacity for financing of U.S. renewable energy projects.
Under FIPP, the project developer seeks project loans from qualified lenders, and those financial institutions apply directly to the Department of Energy. By using the resources of qualified private sector financial institutions that have experience in these types of credit markets, the Department is often able to review and process applications more quickly.
In a FIPP financing, the Department of Energy provides a guarantee for up to 80 percent of a loan. The lender applicants are required to hold at least 20 percent of the credit exposure to the project, which keeps their interests and the Department and project sponsors in alignment.
FIPP is not intended to prompt private sector financial institutions to undertake riskier, innovative projects. Rather, FIPP offers partial guarantees to finance commercial transactions similar to those being privately financed before the credit crisis.
Please refer to the FIPP solicitation for more information on how to apply.
Looking for ATVM Loan Program information? Click here.