The Title XVII application process is a two-part process. Eligible applicants receive an invitation to submit Part II of their application after meeting basic eligibility requirements referred to in each solicitation in Part I of the application process. In addition to the solicitations, supplements, and governing documents, potential appilicants should refer to Suggestions for a Strong Title XVII Innovative Clean Energy Loan Guarantee Application for additional guidance. Applications should be submitted through the Title XVII online application portal.
FEES
LPO is required to collect several fees from Title XVII loan program applicants. Please note that the exact amount of fees will vary with each solicitation. To obtain more detailed information about fees, please refer to the solicitations. In addition, each applicant is responsible for paying the fees and expenses incurred by the Department’s independent consultants and outside legal counsel in connection with such applicant’s project.
APPLICATION FEE
The application fee must be paid at the time an application is submitted. This fee covers the costs associated with the Department’s financial and technical reviews to determine which projects will be selected for due diligence.
FACILITY FEE
The facility fee covers the Department’s administrative costs incurred in connection with considering whether to issue a loan guarantee and to issue such loan guarantee, including expenses such as those incurred in connection with due diligence, negotiation and documentation. This fee is typically paid in part at conditional commitment, with the balance due upon issuance of the loan guarantee.
MAINTENANCE FEE
The annual maintenance fee covers the Department’s administrative expenses, other than extraordinary expenses, in servicing and monitoring the loan guarantee during the lift of the loan. The fee is paid each year in advance, commencing with payment of a pro-rated annual payment on the closing date of the loan guarantee.
CREDIT SUBSIDY COST
The credit subsidy cost is the net present value of the estimated long-term cost to the U.S. government of a loan guarantee as determined under the applicable provisions of the Federal Credit Reform Act of 1990, as amended (FCRA). Section 1702(b) of Title XVII provides that no guarantee shall be made unless:
(1) An appropriation for the cost of the guarantee has been made,
(2) The Secretary has received from the applicant a payment in full for the cost of the guarantee and deposited the payment into the Treasury, or
(3) A combination of one or more appropriations under (1) and one or more payments from the applicant under (2) has been made that is sufficient to cover the cost of the guarantee.
CREDIT-BASED INTEREST RATE SPREAD FOR TITLE XVII