**United States Department of Agriculture**

**Rural Development**

**[Section 9006]{.underline}**

**[Renewable Energy Systems and]{.underline}**

**[Energy Efficiency Improvements Guaranteed Loan Program]{.underline}**

+-----------------------------------------------------------------------+
| **Guaranteed Loan Application Template**                              |
|                                                                       |
| **Loan of \$600,000 or Less**                                         |
+-----------------------------------------------------------------------+
| **Or**                                                                |
+-----------------------------------------------------------------------+
| **Combination Grant and Guaranteed Loan Application Template**        |
|                                                                       |
| **G-loan of \$600,000 or Less**                                       |
+-----------------------------------------------------------------------+

+--------------------------------------+-------------------------------+
| **The guaranteed loan application    |                               |
| template -- and the combination      |                               |
| grant and guaranteed loan            |                               |
| application template - for           |                               |
| guaranteed loans of \$600,000 or     |                               |
| less -** on the following pages --   |                               |
| provides access to fillable forms    |                               |
| and a framework of divider pages to  |                               |
| organize the guaranteed loan         |                               |
| application for submission to        |                               |
| USDA-Rural Development. Please tab   |                               |
| the divider pages as indicated.      |                               |
+--------------------------------------+-------------------------------+
| **Other** tools are available on the |                               |
| Minnesota Rural Development Business |                               |
| and Cooperative Program website at:  |                               |
| [http://www.rur                      |                               |
| dev.usda.gov/mn/rbs.htm]{.underline} |                               |
+--------------------------------------+-------------------------------+
| **Separate** applications must be    |                               |
| submitted for renewable energy       |                               |
| system and energy efficiency         |                               |
| improvement projects. Applicants may |                               |
| only submit **one** application      |                               |
| **for each type** of project per     |                               |
| fiscal year.                         |                               |
+--------------------------------------+-------------------------------+
| **[An original and 1 copy]{.mark}**  |                               |
| of the application must be submitted |                               |
| to:                                  |                               |
|                                      |                               |
| > **Lisa Noty**                      |                               |
| >                                    |                               |
| > 1400 W. Main Street                |                               |
| >                                    |                               |
| > Albert Lea, MN 56007               |                               |
+--------------------------------------+-------------------------------+
| **A project with total eligible      | **A project with total        |
| project costs of [[\$200,000 or      | eligible project costs of     |
| less]{.mark}]{.underline} must       | [more than                    |
| involve [commercially                | \$200,000]{.underline} can    |
| available]{.mark} technology.**      | involve commercial or         |
|                                      | pre-commercial technology.**  |
+--------------------------------------+-------------------------------+

This template is designed for training and education and does not
replace the 4280-B regulation.

**USDA-Rural Development**

**[Section 9006]{.underline}**

**[Renewable Energy Systems and]{.underline}**

**[Energy Efficiency Improvements Guaranteed Loan Program]{.underline}**

+-----------------------------------------------------------------------+
| **Guaranteed Loan Application**                                       |
|                                                                       |
| **Loan of \$600,000 or Less**                                         |
+-----------------------------------------------------------------------+

**Title of Project: [     ]{.underline}**

**[Submitted by]{.underline}**

**Applicant Name: [     ]{.underline}**

**Address: [     ]{.underline}**

**City: [     ]{.underline}**

**County: [     ]{.underline}**

**State: [     ]{.underline}**

**Zip code: [     ]{.underline}**

**Phone #: [     ]{.underline}**

**E-mail: [     ]{.underline}**

**Fax: [     ]{.underline}**

+-----------------------------------------------------------------------+
| **[Choose one:]{.underline}**                                         |
|                                                                       |
| **A Renewable Energy Systems Project**                                |
|                                                                       |
| **or**                                                                |
|                                                                       |
| **An Energy Efficiency Improvements Project**                         |
+-----------------------------------------------------------------------+

  -----------------------------------------------------------------------
  **\$[     ]{.underline} Guaranteed Loan Request**

  -----------------------------------------------------------------------

**Date [     ]{.underline}**

**If you are filing a [guaranteed loan only]{.underline},**

**Use the Table of Contents on [Page 4]{.underline} (the next page) --**

**If you are filing a [combination grant and guaranteed
loan]{.underline},**

**Use the Table of Contents on [Page 5]{.underline}.**

**Table of Contents for Guaranteed Loan of \$600,000 or less**

(Title of the Project) [     ]{.underline}

**[4280.128 (c)]{.mark} Application content for guaranteed loans
\$600,000 or less.** Applications and documentation for guaranteed loans
\$600,000 or less [must]{.underline} comply with paragraphs (c)(1)(i)
through (iii) of this section. Applications must use 4279-1A and include
documentation in paragraphs (b) (2) (ii), (vii), (viii), (ix), (x), and
(xii) of this section. The [lender must have the
documentation]{.underline} contained in paragraphs (b) (2) (iii), (iv),
(v), (vi), and (xi) available in its files for the Agency's review.

1.  **(1) [Guaranteed loan application content.]{.mark}** Applications
    and documentation for guaranteed loans \$600,000 or less must
    provide the required information organized pursuant to a Table of
    Contents in a chapter format presented in the order shown in
    4280.111 (b)(2) through (8), except as specified in paragraphs
    (c)(1)(i) through (iii) of this section.

+---------+------+------------------------------------------------+----+
|         | 4280 | **G- Loan Application Components - \$600,000   | *  |
|         | .111 | or less**                                      | *T |
|         | (b)  |                                                | ab |
|         |      |                                                | ** |
+---------+------+------------------------------------------------+----+
| **Appli | \    | Table of Contents                              |    |
| cant/** | (2\) |                                                |    |
|         |      |                                                |    |
| **Bor   |      |                                                |    |
| rower** |      |                                                |    |
+---------+------+------------------------------------------------+----+
|         | \    | Project Summary                                | A  |
|         | (3\) |                                                |    |
|         |      | > i Title of Project                           |    |
|         |      | >                                              |    |
|         |      | > ii\. Applicant eligibility                   |    |
|         |      | >                                              |    |
|         |      | > iii\. Project Eligibility                    |    |
|         |      | >                                              |    |
|         |      | > iv Operation Description                     |    |
|         |      | >                                              |    |
|         |      | > v Financial Information for Size             |    |
|         |      | > Determination                                |    |
+---------+------+------------------------------------------------+----+
|         | \    | Financial Information                          | B  |
|         | (4\) |                                                |    |
|         |      | > i 3 yr. historical income statement, balance |    |
|         |      | > sheet, and cash flow                         |    |
|         |      | >                                              |    |
|         |      | > ii Current year income statement, balance    |    |
|         |      | > sheet, and cash flow                         |    |
|         |      | >                                              |    |
|         |      | > iii start-up + 3 years pro forma income      |    |
|         |      | > statement, balance sheet,                    |    |
|         |      | >                                              |    |
|         |      | > and cash flow                                |    |
+---------+------+------------------------------------------------+----+
|         | \    | Matching Funds Documentation                   | C  |
|         | (5\) |                                                |    |
+---------+------+------------------------------------------------+----+
|         | \    | Self Evaluation Score                          | D  |
|         | (6\) |                                                |    |
|         |      | Documentation is tabbed to match the scoring   |    |
|         |      | criteria numbering 1-10.                       |    |
+---------+------+------------------------------------------------+----+
|         |      | Energy Audit *(needed only if the project is   | E  |
|         |      | an energy efficiency project)*                 |    |
+---------+------+------------------------------------------------+----+
|         | 4280 |                                                |    |
|         | .128 |                                                |    |
|         | (c   |                                                |    |
|         | )(1) |                                                |    |
|         | (ii) |                                                |    |
+---------+------+------------------------------------------------+----+
|         | \    | Technical Report                               | F  |
|         | (A\) |                                                |    |
|         | or   |                                                |    |
|         | (B)  |                                                |    |
+---------+------+------------------------------------------------+----+
|         | \(i  | Feasibility Study *(needed only if project is  | G  |
|         | ii\) | a renewable energy project*                    |    |
|         |      |                                                |    |
|         |      | *with total project costs over \$200,000)*     |    |
+---------+------+------------------------------------------------+----+
|         |      |                                                |    |
+---------+------+------------------------------------------------+----+
| **L     | 4280 | 4279-1A "Application for Loan Guarantee, Short | H  |
| ender** | .128 | Form"                                          |    |
|         |      |                                                |    |
|         | (    |                                                |    |
|         | b)(2 |                                                |    |
|         | )(i) |                                                |    |
+---------+------+------------------------------------------------+----+
|         | \(   | 1940-20 "Request for Environmental             | I  |
|         | ii\) | Information" and attachments                   |    |
+---------+------+------------------------------------------------+----+
|         | \    | Lender's complete written credit analysis      | J  |
|         | (x\) |                                                |    |
+---------+------+------------------------------------------------+----+
|         | \(x  | Proposed loan agreement                        | K  |
|         | ii\) |                                                |    |
+---------+------+------------------------------------------------+----+

3.  Begin pagination immediately following the Table of Contents.

**Table of Contents for**

**Combination Grant and Guaranteed Loan**

**G- loan of \$600,000 or less**

(Title of the Project) [     ]{.underline}

**[4280.128 (c)]{.mark} Application content for guaranteed loans
\$600,000 or less.** Applications and documentation for guaranteed loans
\$600,000 or less [must]{.underline} comply with paragraphs (c)(1)(i)
through (iii) of this section. Applications must use 4279-1A and include
documentation in paragraphs (b) (2) (ii), (vii), (viii), (ix), (x), and
(xii) of this section. The [lender must have the
documentation]{.underline} contained in paragraphs (b) (2) (iii), (iv),
(v), (vi), and (xi) available in its files for the Agency's review.

1.  **(2) [Guaranteed loan application content.]{.mark}** Applications
    and documentation for guaranteed loans \$600,000 or less must
    provide the required information organized pursuant to a Table of
    Contents in a chapter format presented in the order shown in
    4280.111 (b)(2) through (8), except as specified in paragraphs
    (c)(1)(i) through (iii) of this section.

Begin pagination immediately following the Table of Contents.

+---------+-----+----------------------------------------------+------+
|         |     | **Application Components**                   | **T  |
|         |     |                                              | ab** |
|         |     | **Combination Grant and Guaranteed Loan**    |      |
|         |     |                                              |      |
|         |     | **G-Loan of \$600,000 or less**              |      |
+---------+-----+----------------------------------------------+------+
| **Appli |     | If total eligible project costs are          | G    |
| cant/** |     | [\$200,000 or less]{.underline}, the         | rant |
|         |     | applicant will file a **Simplified**         |      |
| **Bor   |     | Application. [In addition]{.underline}, they |      |
| rower** |     | will need to submit financial information:   |      |
|         |     |                                              |      |
|         |     | > i 3 yr. historical income statement,       |      |
|         |     | > balance sheet, and cash flow               |      |
|         |     | >                                            |      |
|         |     | > ii Current year income statement, balance  |      |
|         |     | > sheet, and cash flow                       |      |
|         |     | >                                            |      |
|         |     | > iii Start-up + 3 years pro forma income    |      |
|         |     | > statement, balance sheet,                  |      |
|         |     | >                                            |      |
|         |     | > and cash flow                              |      |
+---------+-----+----------------------------------------------+------+
|         |     | If total eligible project costs [exceed      |      |
|         |     | \$200,000]{.underline}, the applicant will   |      |
|         |     | file a Full Application. The financial       |      |
|         |     | information is already a part of this        |      |
|         |     | application.                                 |      |
+---------+-----+----------------------------------------------+------+
|         |     | Use only the divider pages H, J, and K.      |      |
+---------+-----+----------------------------------------------+------+
| **L     | 42  | 4279-1A "Application for Loan Guarantee,     | H    |
| ender** | 80. | Short Form"                                  |      |
|         | 128 |                                              |      |
|         |     |                                              |      |
|         | (b) |                                              |      |
|         | (2) |                                              |      |
|         | (i) |                                              |      |
+---------+-----+----------------------------------------------+------+
|         | \(  | Lender's complete written credit analysis    | J    |
|         | x\) |                                              |      |
+---------+-----+----------------------------------------------+------+
|         | \   | Proposed loan agreement                      | K    |
|         | (xi |                                              |      |
|         | i\) |                                              |      |
+---------+-----+----------------------------------------------+------+

+--------------------------------------------------+---------+--------+
| **Tab A**                                        |         |        |
|                                                  |         |        |
| Divider Page                                     |         |        |
+--------------------------------------------------+---------+--------+
|                                                  |         |        |
+--------------------------------------------------+---------+--------+
| **Project Summary** *4280.111 (b) (3) (i)        |         |        |
| through (v)*                                     |         |        |
+--------------------------------------------------+---------+--------+
|                                                  | Put a   |        |
|                                                  | check   |        |
|                                                  | or an   |        |
|                                                  | "x"     |        |
|                                                  |         |        |
|                                                  | if the  |        |
|                                                  | item is |        |
|                                                  | i       |        |
|                                                  | ncluded |        |
|                                                  | behind  |        |
|                                                  | this    |        |
|                                                  | divider |        |
|                                                  | page.   |        |
+--------------------------------------------------+---------+--------+
| \(i\) Title of the project                       |         |        |
+--------------------------------------------------+---------+--------+
| \(ii\) Applicant Eligibility (as per 4280.107    |         |        |
| (a)(1) thru (4))                                 |         |        |
+--------------------------------------------------+---------+--------+
| \(iii\) Project Eligibility (as per 4280.108 (a) |         |        |
| thru (g))                                        |         |        |
+--------------------------------------------------+---------+--------+
| \(iv\) Operation Description                     |         |        |
+--------------------------------------------------+---------+--------+
| (v)Financial Information for Size Determination  |         |        |
+--------------------------------------------------+---------+--------+
| IRS forms                                        | A-1     |        |
+--------------------------------------------------+---------+--------+
| NAICS code information (if applicable)           | A-2     |        |
+--------------------------------------------------+---------+--------+
| Documentation of commercially available or       | A-3     |        |
| pre-commercial technology                        |         |        |
+--------------------------------------------------+---------+--------+
| Third party contracts for management and         | A-4     |        |
| maintenance                                      |         |        |
|                                                  |         |        |
| (if applicable)                                  |         |        |
+--------------------------------------------------+---------+--------+
| Evidence of site control                         | A-5     |        |
+--------------------------------------------------+---------+--------+

  -----------------------------------------------------------------------
  **Section 9006 -- Project Summary**

  -----------------------------------------------------------------------

Applicant Name: [     ]{.underline}

  -----------------------------------------------------------------------
  **A. Title of Project: [     ]{.underline}**

  -----------------------------------------------------------------------

[This is a (choose one -- \_\_\_]{.underline}[\_renewable energy project
or an \_\_\_]{.underline}[\_energy efficiency project).]{.underline}

[The applicant is (choose one -- \_\_\_]{.underline}[\_an agricultural
producer or \_\_\_]{.underline}[\_a rural small business).]{.underline}

  -----------------------------------------------------------------------
  **B. Applicant Eligibility**

  -----------------------------------------------------------------------

**(1)**

If applying as an agricultural producer -- please explain and attach
documentation how you meet the following definition:

+-----------------------------------------------------------------------+
| *An agricultural producer is an individual or entity directly engaged |
| in the production of agricultural products, including crops           |
| (including farming);Livestock (including ranching); forestry          |
| products; hydroponics; nursery stock; or aquaculture, whereby **50%   |
| or greater of their gross income** is derived from the operations.    |
| 50% or greater of gross income is determined as follows:*             |
|                                                                       |
| *[Line11 of IRS form Schedule F divided by]{.underline}*              |
|                                                                       |
| *(line 22 IRS form 1040) + (line 35 of IRS form Schedule F) + (line   |
| 28 and 30 from Schedule C)*                                           |
|                                                                       |
| *Attached are previous year IRS tax forms to confirm the computation  |
| (Exhibit A-1).*                                                       |
+-----------------------------------------------------------------------+

     

**Or --**

If applying as a rural small business -- please explain and attach
documentation how you meet the following definition
[http://sba.gov/size/index.html]{.underline}:

  -----------------------------------------------------------------------
  *An entity is considered a small business in accordance with the Small
  Business Administrations (SBA) small business size standards by NAICS
  found in Title 13 CFR part 121. A private entity including a sole
  proprietorship, partnership, corporation, cooperative (including a
  cooperative qualified under section 501(c)(12) of the Internal Revenue
  Code), and an electric utility including a Tribal or governmental
  electric utility that provides service to rural consumers on a cost of
  service basis without support from public funds or subsidy from the
  government authority establishing the district, provided such utilities
  meet SBA's definition of small business. These entities must operate
  independent of direct Government control. With the exception of the
  entities described above, all other non-profit entities are excluded.*

  -----------------------------------------------------------------------

[Your NAICS code:      Type of business:      .]{.underline}

[NAICS code limitations:       .]{.underline}

Your explanation and documentation (Exhibit A-2) of how you meet the
limitations:

     

**[(2) Citizenship]{.underline}** -- Please check one of the following
as it pertains to your situation:

[\_]{.underline}[\_]{.underline} The applicant is an individual and is a
citizen of the U.S. or has resided in the U.S. after being legally
admitted

for permanent residence.

[\_]{.underline}[\_]{.underline} The applicant is an entity which is at
least 51% owned, directly or indirectly, by individuals who are either
citizens

of the U.S. or reside in the U.S. after being legally admitted for
permanent residence.

**[(]{.underline}**3) Judgments or delinquencies

  ----- ---- --------------------------------------------------------------
  Yes   No   

             Do you have any outstanding judgments in federal court (other
             than U.S. tax court)?

             Are you delinquent in the payment of federal income taxes?

             Are you delinquent in any federal debt?

             Have you ever been debarred from federal financial assistance?
  ----- ---- --------------------------------------------------------------

  -----------------------------------------------------------------------
  **C. Project Eligibility**

  -----------------------------------------------------------------------

**(a)** The proposed project is for the purchase of (check one):

> a renewable energy system, or
>
> energy efficiency improvements.
>
> A description of my project is:
>
> **     **

**(b)** The proposed project is a (check one):

> commercially available and replicable technology, or

  -----------------------------------------------------------------------
  [Commercially available]{.underline} - A system that has a proven
  operating history specific to the proposed application. Such a system
  is based on established design, and installation procedures and
  practice. Professional service providers, trades, large construction
  equipment providers, and labor are familiar with installation
  procedures and practices. Proprietary and balance of system equipment
  and spare parts are readily available. Service is readily available to
  properly maintain and operate system. An established warranty exists
  for parts, labor, and performance.

  -----------------------------------------------------------------------

> pre-commercial and replicable technology.

  -----------------------------------------------------------------------
  [Pre-commercial technology]{.underline} -- Technologies that have
  emerged through the research and development process and have technical
  and economic potential for commercial application, but are not yet
  commercially available.

  -----------------------------------------------------------------------

> Attached is the following documentation (Exhibit A-3) to support this
> classification:
>
>      

**(c)** The project has technical merit as set forth in the technical
report guidelines outlined in 4280.112 (d).

> Yes (for projects with total eligible costs of \$200,000 or less), the
> Technical report follows the
>
> format and content of **Appendix A.**
>
> **Or**
>
> Yes (for projects with total eligible costs exceeding \$200,000), the
> Technical report follows the
>
> format and content of **Appendix B.**

**(d)** The project is located in a rural area other than a city or town
that has a population of greater than 50,000 inhabitants

> and the urbanized area contiguous and adjacent to such a city or town.
>
> Project location [     ]{.underline} 2000 population census
> [     ]{.underline}
>
>      

**(e)** The owner of the project is [     ]{.underline} .

> Is the owner of the project and the applicant -- the same individual
> or entity? Yes No
>
> Does the owner control the revenues and expenses of the project,
> including operation and maintenance?
>
> Yes No
>
> [If no,]{.underline} please explain (a third party under contract to
> the owner may be used to control revenues and expenses and
>
> manage the operation and/or maintenance of the project) -- attached is
> any necessary documentation (Exh. A-4):
>
>      

**(f)** Does the applicant control the site of the proposed project? Yes
No

> Attached is evidence the site is controlled by the applicant for the
> financing term of the loan guarantee or the useful
>
> life of the project financed by the grant (Exhibit A-5).
>
>      

**(g)** Attached is documentation which shows there are satisfactory
sources of revenue in an amount sufficient to provide

> for the operation, management, maintenance, and debt service of the
> project for the life of the project.
>
> (Refer to item #6 in the technical report -- project economic
> assessment and Tab G -- Feasibility Study.)
>
>      

  -----------------------------------------------------------------------
  **D. Operation Description**

  -----------------------------------------------------------------------

**(1)** Describe the applicant's total farm/ranch/business operation and
the relationship of the proposed project to the applicant's total
farm/ranch/business operation.

>      

**(2)** Provide a description of the ownership of the applicant,
including a list of individuals and/or entities with ownership interest,
names of any corporate parents, affiliates, and subsidiaries, as well as
a description of the relationship, including products, between these
entities.

> **     **

  -----------------------------------------------------------------------
  **E. Financial Information for Size Determination**

  -----------------------------------------------------------------------

Attached is financial information to allow the Agency to determine the
applicant's size. All information submitted under this paragraph has
been substantiated by authoritative records. Financial size will
determine the number of points the applicant is eligible for -- for
scoring criteria #6 -- Small agricultural producer -- or -- Very Small
Business. Voluntarily providing tax returns is one means of satisfying
this requirement and providing documentation for scoring criteria #6.

[IRS forms submitted are as follows (please check as
applicable):]{.underline}

IRS form 1120 -- Corporation

IRS form 1120S -- "S" corporation

IRS form 1065 -- Partnership

IRS Schedule F -- Farming

IRS Schedule C -- Business

IRS Form 1040

(A) **Rural small businesses** must provide sufficient information to
    determine total annual receipts for and number of employees of the
    business and any parent, subsidiary, or affiliates at other
    locations. The information provided must be sufficient for the
    Agency to make a determination of business size as defined by SBA.

  -----------------------------------------------------------------------
  Total Annual Receipts: The total income or gross income (sole
  proprietorship) plus cost of goods sold.

  -----------------------------------------------------------------------

> The applicant's determination of business size is as follows:
>
> [     ]{.underline} IRS form 1120 -- Corporation -- line 1a
>
> [     ]{.underline} IRS form 1120 S -- "S" Corporation -- line 1a
>
> [     ]{.underline} IRS form 1065 -- Partnership -- line 1a
>
> [     ]{.underline} IRS Schedule C -- Business -- line 1
>
> [     ]{.underline} IRS Schedule F -- Farming -- lines 3 and 4

Documentation as to the number of employees is as follows:

     

**or**

**(B)** Agricultural producers: Provide the gross market value of your
agricultural products, gross agricultural income, and gross non-farm
income of the applicant for the calendar year preceding the year in
which you submit your application.

1 [     ]{.underline} [     ]{.underline} Schedule F -- line 3 and 4
(gross market value of agricultural products)

> 2 [     ]{.underline} [     ]{.underline} Schedule F -- line 11 (gross
> agricultural income)
>
> 3 [     ]{.underline} [     ]{.underline} Line 22 of IRS form 1040 +
> line 28 and 30 from Schedule C (gross non-farm income)
>
> [     ]{.underline} + [     ]{.underline}

+---------------------------------------------------------+------------+
| **Tab B**                                               |            |
|                                                         |            |
| Divider Page                                            |            |
+---------------------------------------------------------+------------+
|                                                         |            |
+---------------------------------------------------------+------------+
| **Financial Information**                               |            |
|                                                         |            |
| *4280.111 (b) (4) (i) through (iii)*                    |            |
|                                                         |            |
| *And*                                                   |            |
|                                                         |            |
| *4280.128 (b)(2)(viii)*                                 |            |
|                                                         |            |
| **A financial statement typically includes an income    |            |
| statement, balance sheet, and cash flow statement.**    |            |
|                                                         |            |
| Financial information is required on the total          |            |
| operation of the agricultural producer/rural small      |            |
| business and its parent, subsidiary, or affiliates at   |            |
| other locations. All information submitted under this   |            |
| paragraph must be substantiated by authoritative        |            |
| records.                                                |            |
+---------------------------------------------------------+------------+
|                                                         | Put a      |
|                                                         | check or   |
|                                                         | an "x" if  |
|                                                         | the item   |
|                                                         | is         |
|                                                         | included   |
|                                                         | behind     |
|                                                         | this       |
|                                                         | divider    |
|                                                         |            |
|                                                         | page.      |
+---------------------------------------------------------+------------+
| 3 yr. Historical financial statements                   |            |
|                                                         |            |
| **Historical financial statements** prepared in         |            |
| accordance with Generally Accepted Accounting Practices |            |
| (GAAP) for the past 3 years, including income           |            |
| statements and balance sheets. If agricultural          |            |
| producers are unable to present this information in     |            |
| accordance with GAAP, they may instead present          |            |
| financial information for the past years in the format  |            |
| that is generally required by commercial agriculture    |            |
| lenders.                                                |            |
+---------------------------------------------------------+------------+
| Current year financial statement                        |            |
|                                                         |            |
| **Current balance sheet and income statement --**       |            |
| Provide a current balance sheet and income statement    |            |
| prepared in accordance with generally accepted          |            |
| accounting principles (GAAP) and dated within 90 days   |            |
| of the application. Agricultural producers should       |            |
| present financial information in the format that is     |            |
| generally required by commercial agriculture lenders.   |            |
+---------------------------------------------------------+------------+
| 3 yr pro forma financial statements                     |            |
|                                                         |            |
| **Pro Forma & Projections --** Provide pro forma        |            |
| balance sheet at startup of the agricultural            |            |
| producer's/rural small business' business that reflects |            |
| the use of the loan proceeds or grant award; and 3      |            |
| additional years, indicating the necessary start-up     |            |
| capital, operating capital, and short-term credit; and  |            |
| projected cash flow and income statements for 3 years   |            |
| supported by a list of assumptions showing the basis    |            |
| for the projections.                                    |            |
+---------------------------------------------------------+------------+

+-----------------------------------------------------+----------------+
| **Tab C**                                           |                |
|                                                     |                |
| Divider Page                                        |                |
+-----------------------------------------------------+----------------+
|                                                     |                |
+-----------------------------------------------------+----------------+
| **Matching Funds Documentation** *4280.111 (b) (5)* |                |
+-----------------------------------------------------+----------------+
|                                                     | Put a check or |
|                                                     | an "x" if the  |
|                                                     | item is        |
|                                                     | included       |
|                                                     | behind this    |
|                                                     | divider page.  |
+-----------------------------------------------------+----------------+
| A **spreadsheet** identifying **sources of matching |                |
| funds**, **amounts** and **status** of matching     |                |
| funds. The spreadsheet will also include a          |                |
| directory of matching funds source contact          |                |
| information.                                        |                |
+-----------------------------------------------------+----------------+
| **Attach** any applications, correspondence, or     |                |
| other written communication between applicant and   |                |
| matching fund source.                               |                |
+-----------------------------------------------------+----------------+
| The matching funds letter is not a letter of        |                |
| intent. **It is a [commitment]{.underline} to the   |                |
| project for a specific amount of dollars.**         |                |
+-----------------------------------------------------+----------------+

**Applicant Name**

**Matching Funds Documentation Spreadsheet**

**Title of Project: [      ]{.underline}**

**Total Cost \$[      ]{.underline}**

+---+--------+---------+-----------+----------+------+-------+---------+
|   | **     | **      | **Contact | *        | **D  | **S   | **Atta  |
|   | Source | Contact | Phone &   | *Contact | olla | tatus | chments |
|   | of     | Name**  | Fax**     | A        | rs** | of    | to      |
|   | F      |         |           | ddress** |      | Fu    | verify  |
|   | unds** |         |           |          |      | nds** | st      |
|   |        |         |           |          |      |       | atus?** |
+---+--------+---------+-----------+----------+------+-------+---------+
|   |        |         |           |          |      |       |         |
+---+--------+---------+-----------+----------+------+-------+---------+
| * | S      | Lisa    | Area      | 1400 W.  | \$   | Pe    | No      |
| * | ection | Noty    | Office:   | Main     |      | nding |         |
| 1 | 9006   |         |           | Street   |      | award |         |
| * | Grant  |         | Phone:    |          |      | of    |         |
| * |        |         | 507       | Albert   |      | grant |         |
|   |        |         | -373-7960 | Lea, MN  |      |       |         |
|   |        |         | x 120     | 56007    |      |       |         |
|   |        |         |           |          |      |       |         |
|   |        |         | Fax:      |          |      |       |         |
|   |        |         | 507       |          |      |       |         |
|   |        |         | -373-7654 |          |      |       |         |
+---+--------+---------+-----------+----------+------+-------+---------+
| * | App    | Ap      | Applicant | A        | \$   | Comm  | Ap      |
| * | licant | plicant | Business  | pplicant |      | itted | plicant |
| 2 | funds  | Name:   | Phone:    | Address: |      |       | letter  |
| * |        |         |           |          |      |       | of      |
| * |        |         |           |          |      |       | com     |
|   |        |         |           |          |      |       | mitment |
|   |        |         | Fax:      |          |      |       | or bank |
|   |        |         |           |          |      |       | st      |
|   |        |         |           |          |      |       | atement |
+---+--------+---------+-----------+----------+------+-------+---------+
| * |        |         |           |          | \$   |       |         |
| * |        |         |           |          |      |       |         |
| 3 |        |         |           |          |      |       |         |
| * |        |         |           |          |      |       |         |
| * |        |         |           |          |      |       |         |
+---+--------+---------+-----------+----------+------+-------+---------+
| * |        |         |           |          | \$   |       |         |
| * |        |         |           |          |      |       |         |
| 4 |        |         |           |          |      |       |         |
| * |        |         |           |          |      |       |         |
| * |        |         |           |          |      |       |         |
+---+--------+---------+-----------+----------+------+-------+---------+
| * |        |         |           |          | \$   |       |         |
| * |        |         |           |          |      |       |         |
| 5 |        |         |           |          |      |       |         |
| * |        |         |           |          |      |       |         |
| * |        |         |           |          |      |       |         |
+---+--------+---------+-----------+----------+------+-------+---------+
| * |        |         |           |          | \$   |       |         |
| * |        |         |           |          |      |       |         |
| 6 |        |         |           |          |      |       |         |
| * |        |         |           |          |      |       |         |
| * |        |         |           |          |      |       |         |
+---+--------+---------+-----------+----------+------+-------+---------+
|   | Amount |         |           |          | \$   |       |         |
|   | of     |         |           |          |      |       |         |
|   | this   |         |           |          |      |       |         |
|   | guar   |         |           |          |      |       |         |
|   | anteed |         |           |          |      |       |         |
|   | loan   |         |           |          |      |       |         |
|   | appli  |         |           |          |      |       |         |
|   | cation |         |           |          |      |       |         |
|   | r      |         |           |          |      |       |         |
|   | equest |         |           |          |      |       |         |
+---+--------+---------+-----------+----------+------+-------+---------+
|   |        |         |           | Total    | \$   | (S    |         |
|   |        |         |           | Project  |      | hould |         |
|   |        |         |           | Cost     |      | match |         |
|   |        |         |           |          |      | total |         |
|   |        |         |           |          |      | pr    |         |
|   |        |         |           |          |      | oject |         |
|   |        |         |           |          |      | cost  |         |
|   |        |         |           |          |      | on    |         |
|   |        |         |           |          |      | 42    |         |
|   |        |         |           |          |      | 79-1A |         |
|   |        |         |           |          |      | #28   |         |
|   |        |         |           |          |      | lo    |         |
|   |        |         |           |          |      | cated |         |
|   |        |         |           |          |      | b     |         |
|   |        |         |           |          |      | ehind |         |
|   |        |         |           |          |      | Tab   |         |
|   |        |         |           |          |      | H)    |         |
+---+--------+---------+-----------+----------+------+-------+---------+

+--------------------------------------------------------+-------------+
| **Tab D**                                              |             |
|                                                        |             |
| Divider Page                                           |             |
+--------------------------------------------------------+-------------+
|                                                        |             |
+--------------------------------------------------------+-------------+
| **Self Evaluation Score** *4280.111 (b) (6)*           |             |
+--------------------------------------------------------+-------------+
|                                                        | Put a check |
|                                                        | or an "x"   |
|                                                        |             |
|                                                        | if the item |
|                                                        | is included |
|                                                        | behind this |
|                                                        | divider     |
|                                                        | page.       |
+--------------------------------------------------------+-------------+
| Self-score the project using the evaluation criteria   |             |
| 4280.112 (e).                                          |             |
+--------------------------------------------------------+-------------+
| Use Appendix C to 4280-B or Guide 4-- Scoring          | Guide 4     |
| Guideline to complete the evaluation.                  | follows     |
|                                                        | this        |
|                                                        | divider     |
|                                                        | page.       |
+--------------------------------------------------------+-------------+
| To justify the score, submit the total score along     |             |
| with appropriate calculations and attached             |             |
| documentation, or specific cross- references to        |             |
| information elsewhere in the application.              |             |
|                                                        |             |
| Tab the documentation attached to the score sheet to   |             |
| match the scoring criteria number. For example:        |             |
|                                                        |             |
| Scoring criteria #1 -- tab the documentation #1        |             |
|                                                        |             |
| Scoring criteria #2 -- tab the documentation #2        |             |
|                                                        |             |
| Etc. Etc.                                              |             |
+--------------------------------------------------------+-------------+
|                                                        |             |
+--------------------------------------------------------+-------------+

**Guide 4 -- Appendix C -- Scoring Guideline Page 1 of 4**

**Renewable Energy and Energy Efficiency Improvement Program**

**Evaluation Criteria Scoring Guideline**

Per 4280-B Regulation -4280.112 (e)

  ----------------------- ------------ -----------------------------------
  **Name of Applicant:                 
  [     ]{.underline}**                

  **Type of Technology:                
  [     ]{.underline}**                

  **Funding Request:                   
  [     ]{.underline}**                

                          **Final      
                          Total Score  
                          (Points)     
                          (sum of      
                          Categories   
                          1-10):       
                               **      
  ----------------------- ------------ -----------------------------------

List the maximum points the applicant is eligible for under each of the
following ten categories, sum the individual scores (points), and place
the total in the above box under "Final Total Score."

**(1) Quantity of Energy Replaced, Produced, or Saved.**

> Points may only be awarded for one category (A, B, or C). NREL will
> provide their opinion on (i) or (ii) or (iii).
>
> \(i\) Energy replacement
>
> If the proposed renewable energy system is intended primarily for self
> use by the agricultural producer or rural small business, and will
> provide energy replacement of:

+---------------------------------------------------------------+------+
| Greater than 0 but equal to or less than 25%, **award 5       | Po   |
| points.**                                                     | ints |
|                                                               |      |
|                                                               |      |
|                                                               |      |
+---------------------------------------------------------------+------+
| Greater than 25%, but equal to or less than 50%, **award 10   |      |
| points.**                                                     |      |
+---------------------------------------------------------------+------+
| Greater than 50%, **award 15 points.**                        |      |
+---------------------------------------------------------------+------+
| Determine energy replacement by dividing the estimated        |      |
| quantity of renewable energy to be generated over a 12 month  |      |
| period by the estimated quantity of energy consumed over the  |      |
| same 12 month period during the previous year by the          |      |
| applicable energy application. The estimated quantities of    |      |
| energy must be converted to British thermal units (BTU's),    |      |
| Watts, or similar energy equivalents to facilitate scoring.   |      |
| If the estimated energy produced equals more than 150% of the |      |
| energy requirements of the applicable process(es), score the  |      |
| project as an energy generation project.                      |      |
+---------------------------------------------------------------+------+

> *Attach the documentation to substantiate this score for this
> category.*
>
> *You have identified this documentation via tab \# [1]{.underline} .*
>
> *Your explanation of points awarded to be entered into the tracking
> system.*

***or***

> \(ii\) Energy Savings (include additional 5 points if applicable)
>
> \(1\) If the estimated energy expected to be saved by the installation
> of the energy efficiency
>
> improvements will be from:

+---------------------------------------------------------------+------+
| 20% up to but not including 30%, **award 5 points.**          | Po   |
|                                                               | ints |
|                                                               |      |
|                                                               |      |
|                                                               |      |
+---------------------------------------------------------------+------+
| 30% up to but not including 35%, **award 10 points.**         |      |
+---------------------------------------------------------------+------+
| 35% or greater, **award 15 points.**                          |      |
+---------------------------------------------------------------+------+
| Energy savings will be determined by the projections in an    |      |
| energy assessment or audit.                                   |      |
+---------------------------------------------------------------+------+

> \(2\) Additional points.

+---------------------------------------------------------------+------+
| If the project has total eligible project costs of \$50,000   | Po   |
| or less AND opts to obtain a professional energy audit,       | ints |
| **award an additional 5 points.**                             |      |
|                                                               |      |
|                                                               |      |
+---------------------------------------------------------------+------+

> *Attach the documentation to substantiate this score for this
> category.*
>
> *You have identified this documentation via tab \# [1]{.underline} .*
>
> *Your explanation of points awarded to be entered into the tracking
> system.*

***or***

> \(iii\) Energy generation

+---------------------------------------------------------------+------+
| If the proposed renewable energy system is intended primarily | Po   |
| for production of energy for sale, award 10 points.           | ints |
|                                                               |      |
|                                                               |      |
|                                                               |      |
+---------------------------------------------------------------+------+

> *Attach the documentation to substantiate this score for this
> category.*
>
> *You have identified this documentation via tab \# [1]{.underline} .*
>
> *Your explanation of points awarded to be entered into the tracking
> system.*

**Guide 4 -- Appendix C -- Scoring Guideline Page 2 of 4**

**(2) Environmental benefits**

+----------------------------------------------------------------+-----+
| If the purpose of the proposed system contributes to the       | Poi |
| environmental goals and objectives of other Federal, State, or | nts |
| local programs, **award 10 points.**                           |     |
|                                                                |     |
|                                                                |     |
+----------------------------------------------------------------+-----+
| Award points only if the applicant provides documentation from |     |
| an appropriate authority supporting this claim.                |     |
+----------------------------------------------------------------+-----+

> *Attach the documentation to substantiate this score for this
> category.*
>
> *You have identified this documentation via tab \# [2]{.underline} .*
>
> *Your explanation of points awarded to be entered into the tracking
> system.*

**(3) Commercial availability**

+----------------------------------------------------------------+-----+
| If the proposed system or improvement is currently             | Poi |
| commercially available and replicable,                         | nts |
|                                                                |     |
| **award 5 points.**                                            |     |
|                                                                |     |
+----------------------------------------------------------------+-----+
| If the proposed system or improvement is commercially          |     |
| available and replicable and is also provided with a 5 year or |     |
| longer warranty providing the purchaser protection against     |     |
| system degradation or breakdown or component breakdown,        |     |
| **award 10 points.**                                           |     |
+----------------------------------------------------------------+-----+

> *Attach the documentation to substantiate this score for this
> category.*
>
> *You have identified this documentation via tab \# [3]{.underline} .*
>
> *Your explanation of points awarded to be entered into the tracking
> system*.

**Guide 4 -- Appendix C -- Scoring Guideline Page 3 of 4**

**(4) Technical Merit --** [The applicant should not score this
criteria]{.underline}.

The contents of the Technical report will substantiate the score for
technical merit. NREL will determine final points awarded.

  ------------------------------------------------- ---------------------
  **If the description - - - -**                    

  Has no significant weaknesses and exceeds the     **award 100%** of the
  requirements of the paragraph                     total possible score.

  Has one or more significant strengths, and meets  **award 80%** of the
  the requirements of the paragraph                 total possible score.

  Meets the basic requirements of the paragraph but **award 60%** of the
  also has several weaknesses                       total possible score.

  Is lacking in one or more critical aspects, key   **award 40%** of the
  issues have not been addressed, but the           total possible score.
  description demonstrates some merit or strengths  

  Has serious deficiencies, internal                **award 20%** of the
  inconsistencies or is missing information         total possible score.

  Has no merit in this area                         **award 0%** of the
                                                    total possible score.

  **The total possible points for Technical Merit   
  is 35 points.**                                   
  ------------------------------------------------- ---------------------

+-----------------------------------------------+-------+-------+-----+
| The 10 subparagraphs which are the basis for  | Ma    | \% of | Sc  |
| evaluation.                                   | ximum | score | ore |
|                                               | pos   | aw    | A   |
|                                               | sible | arded | war |
|                                               | score |       | ded |
+-----------------------------------------------+-------+-------+-----+
| \(A\) **Qualifications of the project team    | 10    |       |     |
| -**The applicant has described the project    |       |       |     |
| team service providers, their professional    |       |       |     |
| credentials, and relevant experience. The     |       |       |     |
| description supports that the project team    |       |       |     |
| service, equipment, and installation          |       |       |     |
| providers have the necessary professional     |       |       |     |
| credentials, licenses, certifications, or     |       |       |     |
| relevant experience to develop the proposed   |       |       |     |
| project.                                      |       |       |     |
+-----------------------------------------------+-------+-------+-----+
| \(B\) **Agreements and Permits -**The         | 5     |       |     |
| applicant has described the necessary         |       |       |     |
| agreements and permits required for the       |       |       |     |
| project and the schedule for securing those   |       |       |     |
| agreements and permits.                       |       |       |     |
+-----------------------------------------------+-------+-------+-----+
| \(C\) **Energy or Resource Assessment -**The  | 10    |       |     |
| applicant has described the quality and       |       |       |     |
| availability of a suitable renewable          |       |       |     |
| resource, or an assessment of expected energy |       |       |     |
| savings for the proposed system.              |       |       |     |
+-----------------------------------------------+-------+-------+-----+
| \(D\) **Design and Engineering -**The         | 30    |       |     |
| applicant has described the design,           |       |       |     |
| engineering, and testing needed for the       |       |       |     |
| proposed project. The description supports    |       |       |     |
| that the system will be designed, engineered, |       |       |     |
| tested so as to meet its intended purpose,    |       |       |     |
| ensure public safety, and comply with         |       |       |     |
| applicable laws, regulations, agreements,     |       |       |     |
| permits, codes, and standards.                |       |       |     |
+-----------------------------------------------+-------+-------+-----+
| \(E\) **Project Development Schedule-**The    | 5     |       |     |
| applicant has described the development       |       |       |     |
| method including the key project development  |       |       |     |
| activities and the proposed schedule for each |       |       |     |
| activity. The description identifies each     |       |       |     |
| significant task, its beginning and end, and  |       |       |     |
| its relationship to the time needed to        |       |       |     |
| initiate and carry the project through to     |       |       |     |
| successful completion. The description        |       |       |     |
| addresses grantee or borrower project         |       |       |     |
| development cash flow requirements.           |       |       |     |
+-----------------------------------------------+-------+-------+-----+
| \(F\) **Project Economic Assessment-**The     | 20    |       |     |
| applicant has described the financial         |       |       |     |
| performance of the proposed project,          |       |       |     |
| including the calculation of simple payback.  |       |       |     |
| The description addresses project costs and   |       |       |     |
| revenues, such as applicable investment and   |       |       |     |
| production incentives and other information   |       |       |     |
| to allow the assessment of the project's cost |       |       |     |
| effectiveness.                                |       |       |     |
+-----------------------------------------------+-------+-------+-----+
| \(G\) **Equipment Procurement -** The         | 5     |       |     |
| applicant has described the availability of   |       |       |     |
| the equipment required by the system. The     |       |       |     |
| description supports that the required        |       |       |     |
| equipment is available, and can be procured   |       |       |     |
| and delivered within the proposed project     |       |       |     |
| development schedule.                         |       |       |     |
+-----------------------------------------------+-------+-------+-----+
| \(H\) **Equipment Installation -**The         | 5     |       |     |
| applicant has described the plan for site     |       |       |     |
| development and system installation.          |       |       |     |
+-----------------------------------------------+-------+-------+-----+
| \(I\) **Operations and Maintenance -**The     | 5     |       |     |
| applicant has described the operations and    |       |       |     |
| maintenance requirements of the system        |       |       |     |
| necessary for the system to operate as        |       |       |     |
| designed over the design life.                |       |       |     |
+-----------------------------------------------+-------+-------+-----+
| \(J\) **Dismantling and disposal of project   | 5     |       |     |
| components -** The applicant has described    |       |       |     |
| the plan for dismantling and disposing of     |       |       |     |
| project components at the end of their useful |       |       |     |
| lives and associated wastes.                  |       |       |     |
+-----------------------------------------------+-------+-------+-----+
| Total Possible Score                          | 100   | Total |     |
|                                               |       | Score |     |
|                                               |       | Aw    |     |
|                                               |       | arded |     |
+-----------------------------------------------+-------+-------+-----+
| Total Score Awarded\_\_\_\_\_\_\_\_\_=        |       | **P   |     |
| \_\_\_\_\_\_% X 35 total possible points =    |       | oints |     |
|                                               |       | awar  |     |
| Total Possible Score 100                      |       | ded** |     |
+-----------------------------------------------+-------+-------+-----+

*Attach the documentation to substantiate this score for this category.*

*You have identified this documentation via tab \# [See the technical
report score from the NREL tracking system]{.underline} .*

*Your explanation of points awarded to be entered into the tracking
system.*

**Guide 4 -- Appendix C -- Scoring Guideline Page 4 of 4**

**(5) Readiness (Grants only)**

> If the applicant has written commitments, prior to the Agency
> receiving the complete application,
>
> from the source(s) confirming commitment of:

+----------------------------------------------------------------+-----+
| 50% up to but not including 75% of the matching funds, **award | Poi |
| 5 points.**                                                    | nts |
|                                                                |     |
|                                                                |     |
|                                                                |     |
+----------------------------------------------------------------+-----+
| 75% up to but not including 100% of the matching funds,        |     |
| **award 10 points.**                                           |     |
+----------------------------------------------------------------+-----+
| 100% of the matching funds, **award 15 points.**               |     |
+----------------------------------------------------------------+-----+

> *Attach the documentation to substantiate this score for this
> category.*
>
> *You have identified this documentation via tab \# [5]{.underline} .*
>
> *Your explanation of points awarded to be entered into the tracking
> system.*

**(6) Small Agricultural Producer/Very Small Rural Business**

> If the applicant is an agricultural producer producing agricultural
> products with a gross market value of:

+----------------------------------------------------------------+-----+
| less than \$600,000 in the preceding year, award 5 points.     | Poi |
|                                                                | nts |
|                                                                |     |
|                                                                |     |
|                                                                |     |
+----------------------------------------------------------------+-----+
| less than \$200,000 in the preceding year,                     |     |
|                                                                |     |
| OR                                                             |     |
|                                                                |     |
| is a Very Small Rural Business as defined in 4280.103 (a       |     |
| business with less than 15 employees and less than \$1 million |     |
| in annual receipts), award 10 points.                          |     |
+----------------------------------------------------------------+-----+

> *Attach the documentation to substantiate this score for this
> category.*
>
> *You have identified this documentation via tab \# [6]{.underline} .*
>
> *Your explanation of points awarded to be entered into the tracking
> system.*

**(7) Simplified application**

+----------------------------------------------------------------+-----+
| If an applicant is eligible for and uses the simplified        | Poi |
| application process or if the project has total eligible       | nts |
| project costs of \$200,000 or less, award 5 points.            |     |
|                                                                |     |
|                                                                |     |
+----------------------------------------------------------------+-----+

> *Attach the documentation to substantiate this score for this
> category.*
>
> *You have identified this documentation via tab \# [7]{.underline} .*
>
> *Your explanation of points awarded to be entered into the tracking
> system.*

**(8) Previous grantees and borrowers**

+----------------------------------------------------------------+-----+
| If the applicant has not been awarded a grant or loan under    | Poi |
| this program within the 2 previous Federal fiscal years, award | nts |
| 5 points.                                                      |     |
|                                                                |     |
|                                                                |     |
+----------------------------------------------------------------+-----+

> *Attach the documentation to substantiate this score for this
> category.*
>
> *You have identified this documentation via tab \# [8]{.underline} .*
>
> *Your explanation of points awarded to be entered into the tracking
> system.*

**(9) Return on investment (NREL will make the final determination for
these points.)**

> If the proposed project will return the cost of investment in

+----------------------------------------------------------------+-----+
| Less than 4 years, award 10 points.                            | Poi |
|                                                                | nts |
|                                                                |     |
|                                                                |     |
|                                                                |     |
+----------------------------------------------------------------+-----+
| 4 years up to but not including 8 years, award 4 points.       |     |
+----------------------------------------------------------------+-----+
| 8 years up to 11 years, award 2 points.                        |     |
+----------------------------------------------------------------+-----+

> *Attach the documentation to substantiate this score for this
> category.*
>
> *You have identified this documentation via tab \# [9]{.underline} .*
>
> *Your explanation of points awarded to be entered into the tracking
> system.*

**(10) Loan Rate (Guaranteed Loans only; 4280.129 (e)):**

+----------------------------------------------------------------+-----+
| If the rate of the loan is below the Prime Rate (as published  | Poi |
| in the Wall Street Journal) plus 1.5 percent, award 5 points.  | nts |
| OR                                                             |     |
|                                                                |     |
|                                                                |     |
+----------------------------------------------------------------+-----+
| If the rate of the loan below the Prime Rate (as published in  |     |
| the Wall Street Journal) plus 1 percent, award 10 points.      |     |
+----------------------------------------------------------------+-----+

> *Attach the documentation to substantiate this score for this
> category.*
>
> *You have identified this documentation via tab \# [10]{.underline} .*
>
> *Your explanation of points awarded to be entered into the tracking
> system.*

+------------------------------------------------------+---------------+
| **Tab E**                                            |               |
|                                                      |               |
| Divider Page                                         |               |
+------------------------------------------------------+---------------+
|                                                      |               |
+------------------------------------------------------+---------------+
| **Energy Audit**                                     |               |
|                                                      |               |
| **(for Energy Efficiency Projects Only**) *4280.111  |               |
| (b) (7) (ii) (B)*                                    |               |
+------------------------------------------------------+---------------+
|                                                      | Put a check   |
|                                                      | or an "x" if  |
|                                                      | the item is   |
|                                                      | included      |
|                                                      | behind this   |
|                                                      | divider page. |
+------------------------------------------------------+---------------+
| For energy efficiency improvement projects with      |               |
| total eligible project costs greater than \$50,000,  |               |
| an energy audit must be conducted by or reviewed and |               |
| certified by an energy auditor.                      |               |
+------------------------------------------------------+---------------+
| Energy audit -- A report conducted by a Certified    |               |
| Energy Manager or Professional Engineer that focuses |               |
| on potential capital-intensive projects and involves |               |
| detailed gathering of field data and engineering     |               |
| analysis. The report will provide detailed project   |               |
| cost and savings information with a high level of    |               |
| confidence sufficient for major capital investment   |               |
| decisions. It will estimate costs, expected energy   |               |
| savings from the subject improvements, and dollars   |               |
| saved per year. The report will estimate             |               |
| weighted-average payback period in years.            |               |
+------------------------------------------------------+---------------+
|                                                      |               |
+------------------------------------------------------+---------------+
|                                                      |               |
+------------------------------------------------------+---------------+

+------------------------------------------------------------+---+--------+
| **Tab F**                                                  |   |        |
|                                                            |   |        |
| Divider Page                                               |   |        |
+------------------------------------------------------------+---+--------+
|                                                            |   |        |
+------------------------------------------------------------+---+--------+
| **Technical Report**                                       |   |        |
|                                                            |   |        |
| **(required of every project)**                            |   |        |
|                                                            |   |        |
| *4280.111 (b) (7) (ii) (A) and (C) through (G)*            |   |        |
+------------------------------------------------------------+---+--------+
|                                                            | P |        |
|                                                            | u |        |
|                                                            | t |        |
|                                                            | a |        |
|                                                            | c |        |
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|                                                            | o |        |
|                                                            | r |        |
|                                                            | a |        |
|                                                            | n |        |
|                                                            | " |        |
|                                                            | x |        |
|                                                            | " |        |
|                                                            | i |        |
|                                                            | f |        |
|                                                            | t |        |
|                                                            | h |        |
|                                                            | e |        |
|                                                            | i |        |
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|                                                            | e |        |
|                                                            | m |        |
|                                                            | i |        |
|                                                            | s |        |
|                                                            | i |        |
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|                                                            | l |        |
|                                                            | u |        |
|                                                            | d |        |
|                                                            | e |        |
|                                                            | d |        |
|                                                            | b |        |
|                                                            | e |        |
|                                                            | h |        |
|                                                            | i |        |
|                                                            | n |        |
|                                                            | d |        |
|                                                            | t |        |
|                                                            | h |        |
|                                                            | i |        |
|                                                            | s |        |
|                                                            | d |        |
|                                                            | i |        |
|                                                            | v |        |
|                                                            | i |        |
|                                                            | d |        |
|                                                            | e |        |
|                                                            | r |        |
|                                                            | p |        |
|                                                            | a |        |
|                                                            | g |        |
|                                                            | e |        |
|                                                            | . |        |
+------------------------------------------------------------+---+--------+
| **4280.128(c)(1)(ii)**                                     |   |        |
|                                                            |   |        |
| **(A)** For renewable energy projects and energy           |   |        |
| efficiency projects utilizing commercially available       |   |        |
| systems or improvements with [total eligible project costs |   |        |
| of **[\$200,000 or less]{.mark}**]{.underline}, submit a   |   |        |
| Technical Report, which as described in Appendix A of this |   |        |
| subpart. If a renewable energy project does not fit one of |   |        |
| the technologies identified in Appendix A, the applicant   |   |        |
| must submit a Technical Report that conforms to the        |   |        |
| overall outline and subjects specified in                  |   |        |
| 4280.111(b)(7)(ii)(G) under Appendix B.                    |   |        |
|                                                            |   |        |
| **(B)** For renewable energy projects and energy           |   |        |
| efficiency projects utilizing pre-commercial technology or |   |        |
| with [total eligible project costs **[greater than         |   |        |
| \$200,000]{.mark}**]{.underline}, submit a Technical       |   |        |
| Report as described in **[[Appendix                        |   |        |
| B]{.underline}]{.mark}** of this subpart and as specified  |   |        |
| in 4280.111(b)(7)(ii)(G)(1) through (10), as applicable.   |   |        |
+------------------------------------------------------------+---+--------+
| The Technical report must demonstrate that the renewable   |   |        |
| energy system or energy efficiency improvement project can |   |        |
| be installed and perform as intended in a reliable, safe,  |   |        |
| cost effective, and legally compliant manner.              |   |        |
+------------------------------------------------------------+---+--------+
| The services of a **professional engineer** (P.E.) or team |   |        |
| of licensed PE's are required                              |   |        |
|                                                            |   |        |
| > \- on **renewable energy** projects with total eligible  |   |        |
| > projects costs **exceeding \$400,000.**                  |   |        |
|                                                            |   |        |
| 1.  \- and for **energy efficiency** projects with total   |   |        |
|     eligible project costs **exceeding \$200,000.**        |   |        |
|                                                            |   |        |
|     Services include a design review, installation         |   |        |
|     monitoring, testing prior to commercial operation and  |   |        |
|     project completion certification.                      |   |        |
+------------------------------------------------------------+---+--------+
| Projects exceeding total eligible costs of                 |   |        |
| **\$1,200,000**, the technical report must be reviewed and |   |        |
| include an opinion and recommendation by an independent    |   |        |
| qualified consultant.                                      |   |        |
+------------------------------------------------------------+---+--------+
| All information provided in the Technical Report will be   |   |        |
| evaluated **against the requirements provided in Appendix  |   |        |
| A or B, as applicable**, of this subpart. Any Technical    |   |        |
| Report not prepared in the following format and in         |   |        |
| accordance with Appendix A or B, where applicable, **will  |   |        |
| be penalized under scoring for technical merit.**          |   |        |
+------------------------------------------------------------+---+--------+
| **Technical Report Requirements -- To find Appendix A or   |   |        |
| Appendix B guidelines -- click on *G-loans* and follow the |   |        |
| steps to Step 3**                                          |   |        |
+------------------------------------------------------------+---+--------+
| \(1\) **Qualifications of the project team** -The          |   |        |
| applicant has described the project team service           |   |        |
| providers, their professional credentials, and relevant    |   |        |
| experience. The description supports that the project team |   |        |
| service, equipment, and installation providers have the    |   |        |
| necessary professional credentials, licenses,              |   |        |
| certifications, or relevant experience to develop the      |   |        |
| proposed project.                                          |   |        |
+------------------------------------------------------------+---+--------+
| \(2\) **Agreements and Permits** -The applicant has        |   |        |
| described the necessary agreements and permits required    |   |        |
| for the project and the schedule for securing those        |   |        |
| agreements and permits.                                    |   |        |
+------------------------------------------------------------+---+--------+
| \(3\) **Energy or Resource Assessment** -The applicant has |   |        |
| described the quality and availability of a suitable       |   |        |
| renewable resource, or an assessment of expected energy    |   |        |
| savings for the proposed system.                           |   |        |
+------------------------------------------------------------+---+--------+
| \(4\) **Design and Engineering** -The applicant has        |   |        |
| described the design, engineering, and testing needed for  |   |        |
| the proposed project. The description supports that the    |   |        |
| system will be designed, engineered, tested so as to meet  |   |        |
| its intended purpose, ensure public safety, and comply     |   |        |
| with applicable laws, regulations, agreements, permits,    |   |        |
| codes, and standards.                                      |   |        |
+------------------------------------------------------------+---+--------+
| \(5\) **Project Development Schedule** -The applicant has  |   |        |
| described the development method including the key project |   |        |
| development activities and the proposed schedule for each  |   |        |
| activity. The description identifies each significant      |   |        |
| task, its beginning and end, and its relationship to the   |   |        |
| time needed to initiate and carry the project through to   |   |        |
| successful completion. The description addresses grantee   |   |        |
| or borrower project development cash flow requirements.    |   |        |
+------------------------------------------------------------+---+--------+
| \(6\) **Project Economic Assessment**-The applicant has    |   |        |
| described the financial performance of the proposed        |   |        |
| project, including the calculation of simple payback. The  |   |        |
| description addresses project costs and revenues, such as  |   |        |
| applicable investment and production incentives and other  |   |        |
| information to allow the assessment of the project's cost  |   |        |
| effectiveness.                                             |   |        |
+------------------------------------------------------------+---+--------+
| \(7\) **Equipment Procurement** - The applicant has        |   |        |
| described the availability of the equipment required by    |   |        |
| the system. The description supports that the required     |   |        |
| equipment is available, and can be procured and delivered  |   |        |
| within the proposed project development schedule.          |   |        |
+------------------------------------------------------------+---+--------+
| \(8\) **Equipment Installation** -The applicant has        |   |        |
| described the plan for site development and system         |   |        |
| installation.                                              |   |        |
+------------------------------------------------------------+---+--------+
| \(9\) **Operations and Maintenance** -The applicant has    |   |        |
| described the operations and maintenance requirements of   |   |        |
| the system necessary for the system to operate as designed |   |        |
| over the design life.                                      |   |        |
+------------------------------------------------------------+---+--------+
| \(10\) **Dismantling and disposal of project components**  |   |        |
| -The applicant has described the plan for dismantling and  |   |        |
| disposing of project components at the end of their useful |   |        |
| lives and associated wastes.                               |   |        |
+------------------------------------------------------------+---+--------+

+------------------------------------------------------+---------------+
| **Tab G**                                            |               |
|                                                      |               |
| Divider Page                                         |               |
+------------------------------------------------------+---------------+
|                                                      |               |
+------------------------------------------------------+---------------+
| **Feasibility Study**                                |               |
|                                                      |               |
| *4280.111 (b) (8) and 4280.128 (c)(1)(iii)*          |               |
|                                                      |               |
| **(required for renewable energy projects only**     |               |
|                                                      |               |
| **which exceed \$200,000 in total eligible costs)**  |               |
+------------------------------------------------------+---------------+
|                                                      | Put a check   |
|                                                      | or an "x" if  |
|                                                      | the item is   |
|                                                      | included      |
|                                                      | behind this   |
|                                                      | divider page. |
+------------------------------------------------------+---------------+
| For each application for a renewable energy system   |               |
| project, with total eligible project costs greater   |               |
| than \$200,000, a business-level feasibility study   |               |
| is required,                                         |               |
+------------------------------------------------------+---------------+
| An independent qualified consultant will be required |               |
| by the Agency for start-up businesses or existing    |               |
| businesses.                                          |               |
+------------------------------------------------------+---------------+
| An acceptable business-level feasibility study must  |               |
| at least include an evaluation of economic, market,  |               |
| technical, financial, and management feasibility.    |               |
+------------------------------------------------------+---------------+
|                                                      |               |
+------------------------------------------------------+---------------+
|                                                      |               |
+------------------------------------------------------+---------------+
|                                                      |               |
+------------------------------------------------------+---------------+

Click here -- to go to "feasibility guidelines" for additional
information.

+---------------------------------------------------+------------------+
| **Tab H**                                         |                  |
|                                                   |                  |
| Divider Page                                      |                  |
+---------------------------------------------------+------------------+
| *4280.128 (b)(2)(i)*                              | Put a check or   |
|                                                   | an "x" if the    |
|                                                   | item is included |
|                                                   | behind this      |
|                                                   | divider page.    |
+---------------------------------------------------+------------------+
| 4279-1A "Application for Loan Guarantee, Short    |                  |
| Form"                                             |                  |
|                                                   |                  |
| *(This form is fillable on-line) -- go to*        |                  |
|                                                   |                  |
| *ht                                               |                  |
| tp://www.rurdev.usda.gov/ia/4279-1A_fillable.pdf* |                  |
+---------------------------------------------------+------------------+
|                                                   |                  |
+---------------------------------------------------+------------------+
| **This certification is located on the 4279-1A    |                  |
| Application form.**                               |                  |
|                                                   |                  |
| **(xi)** A [certification]{.underline} by the     |                  |
| lender that it has completed a [comprehensive     |                  |
| written analysis of the proposal]{.underline},    |                  |
| the borrower is eligible, the loan is for         |                  |
| authorized purposes with technical merit, and     |                  |
| there is reasonable assurance of repayment        |                  |
| ability based on the borrower's history,          |                  |
| projections, equity, and the collateral to be     |                  |
| obtained.                                         |                  |
+---------------------------------------------------+------------------+
|                                                   |                  |
+---------------------------------------------------+------------------+

+-----------------------------------------------------------------------+
| **Tab I**                                                             |
|                                                                       |
| Divider Page                                                          |
+-----------------------------------------------------------------------+
| *4280.128 (b)(2)(ii)*                                                 |
+-----------------------------------------------------------------------+
| 1940-20 -- Request for Environmental Information -- and documentation |
|                                                                       |
| Fillable form available at:                                           |
|                                                                       |
| *http://forms.sc.                                                     |
| egov.usda.gov/efcommon/eFileServices/Forms/RD1940-0020_060400V01.pdf* |
+-----------------------------------------------------------------------+
| *Consult with the Rural Development Area Office Specialist for        |
| documentation needed.*                                                |
+-----------------------------------------------------------------------+

  -----------------------------------------------------------------------
  **These items must be available in lender's files for the Agency's
  review and do not need to be submitted with the application.**

  **[(iii)]{.mark}** A personal credit report for the borrower from an
  Agency approved credit reporting company for each owner, each partner,
  officer, director, key employee, and stockholder owning 20% or more
  interest in the borrower's business except passive investors and those
  corporations listed on a major stock exchange.

  **[(iv)]{.mark}** Appraisals completed in accordance with 4280.141.
  Completed appraisals should be submitted when the application is filed.
  If the appraisal has not been completed when the application is filed,
  the applicant must submit an estimated appraisal. In all cases, a
  completed appraisal must be submitted prior to the loan being closed.

  **[(v)]{.mark}** Commercial credit reports obtained by the lender on
  the borrower and any parent, affiliate, and subsidiary firms.

  **[(vi)]{.mark}** Current personal and corporate financial statements
  of any guarantors

  **[(vii)]{.mark}** Intergovernmental consultation comments in
  accordance with 7 CFR part 3015, subpart V, of this title. -- NA in
  Iowa
  -----------------------------------------------------------------------

+-----------------------------------------------------------+----------+
| **Tab J**                                                 |          |
|                                                           |          |
| Divider Page                                              |          |
+-----------------------------------------------------------+----------+
|                                                           |          |
+-----------------------------------------------------------+----------+
| **Lender's Complete Written Credit Analysis**             |          |
|                                                           |          |
| *4280.128 (b)(2)(x)*                                      |          |
+-----------------------------------------------------------+----------+
|                                                           | Put a    |
|                                                           | check or |
|                                                           | an "x"   |
|                                                           | if the   |
|                                                           | item is  |
|                                                           | included |
|                                                           | behind   |
|                                                           | this     |
|                                                           | divider  |
|                                                           | page.    |
+-----------------------------------------------------------+----------+
| Lender's complete written analysis, including:            |          |
+-----------------------------------------------------------+----------+
| -   Spreadsheets of the balance sheets and income         |          |
|     statements for the 3 previous years (for existing     |          |
|     businesses), pro forma balance sheet at startup, and  |          |
|     3 years projected year end balance sheets and income  |          |
|     statements                                            |          |
|                                                           |          |
| -   With appropriate ratios and comparisons with          |          |
|     industrial standards (such as Dun & Bradstreet or     |          |
|     Robert Morris Associates).                            |          |
+-----------------------------------------------------------+----------+
| > All data must be shown in total dollars and also in     |          |
| > common size form, obtained by expressing all balance    |          |
| > sheet items as a percentage of assets and all income    |          |
| > and expense items as a percentage of sales.             |          |
+-----------------------------------------------------------+----------+
| The lender's credit analysis must address the:            |          |
+-----------------------------------------------------------+----------+
| > Borrower's management                                   |          |
+-----------------------------------------------------------+----------+
| > Repayment ability including a cash-flow analysis        |          |
+-----------------------------------------------------------+----------+
| > History of debt repayment                               |          |
+-----------------------------------------------------------+----------+
| > Necessity of any debt refinancing                       |          |
+-----------------------------------------------------------+----------+
| > And the credit reports of the borrower, its principals, |          |
| > and any parent, affiliate, or subsidiary.               |          |
+-----------------------------------------------------------+----------+

+-----------------------------------------------------------------------+
| **[4280.128 (b) (2)]{.mark}**                                         |
|                                                                       |
| [(x)]{.mark} Lender's complete comprehensive written analysis in      |
| accordance with **4280.139-Credit Quality**                           |
+-----------------------------------------------------------------------+
| The lender must determine credit quality and must address all of the  |
| elements of credit quality in a written credit analysis including     |
| adequacy of equity, cash flow, collateral, history, management, and   |
| current status of the industry for which credit is to be extended.    |
|                                                                       |
| (a) [Cash flow]{.underline} -- All efforts will be made to structure  |
|     debt so that the business has adequate debt coverage and the      |
|     ability to accommodate expansion.                                 |
|                                                                       |
| (b) [Collateral]{.underline} -- Collateral must have documented value |
|     sufficient to protect the interest of the lender and the Agency.  |
|     The discounted collateral value will normally be at least equal   |
|     to the loan amount. Lenders will discount collateral consistent   |
|     with sound loan-to-value policy. Guaranteed loans made under this |
|     subpart shall have at least parity position with guaranteed loans |
|     made under subpart B of part 4279 of this title.                  |
|                                                                       |
| (c) [Industry.]{.underline} The current status of the industry will   |
|     be considered. Borrowers developing well established commercially |
|     available renewable energy systems with significant support       |
|     infrastructure may be considered for better terms and conditions  |
|     than those borrowers developing systems with limited              |
|     infrastructure.                                                   |
|                                                                       |
| (d) [Equity]{.underline} -- In determining the adequacy of equity,    |
|     the lender must meet the criteria specified in paragraph (d) (1)  |
|     of this section for loans over \$600,000 and the criteria in      |
|     paragraph (d)(2) of this section for loans of \$600,000 or less.  |
|     Cash equity injection, as discussed in paragraphs (d)(1) and (2)  |
|     of this section, must be in the form of cash. Federal grant funds |
|     may be counted as cash. (2) For loans of \$600,000 or less,       |
|     borrowers shall demonstrate evidence of cash equity injection in  |
|     the project of not less than 15 percent of eligible project       |
|     costs. The fair market value of equity in real property that is   |
|     to be pledged as collateral for the loan may be substituted in    |
|     whole or in part to meet the cash equity requirement. However,    |
|     the appraisal completed to establish the fair market value of the |
|     real property must not be more than one year old and must meet    |
|     Agency appraisal standards.                                       |
|                                                                       |
| (e) [Lien Priorities]{.underline}. The entire loan will be secured by |
|     the same security with equal lien priority for the guaranteed and |
|     unguaranteed portions of the loan. The unguaranteed portion of    |
|     the loan will neither be paid first nor given any preference or   |
|     priority over the guaranteed portion. A parity or junior position |
|     may be considered provided that discounted collateral values are  |
|     adequate to secure the loan in accordance with paragraph (b) of   |
|     this section after considering prior liens.                       |
+-----------------------------------------------------------------------+

+---+-------------------------------------------------------------+-----+
| * |                                                             |     |
| * |                                                             |     |
| T |                                                             |     |
| a |                                                             |     |
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| e |                                                             |     |
+---+-------------------------------------------------------------+-----+
|   |                                                             |     |
+---+-------------------------------------------------------------+-----+
| * |                                                             |     |
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+---+-------------------------------------------------------------+-----+
|   |                                                             |     |
+---+-------------------------------------------------------------+-----+
| * |                                                             |     |
| * |                                                             |     |
| ( |                                                             |     |
| x |                                                             |     |
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| i |                                                             |     |
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| n |                                                             |     |
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| g |                                                             |     |
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| s |                                                             |     |
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| m |                                                             |     |
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| A |                                                             |     |
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| t |                                                             |     |
| w |                                                             |     |
| i |                                                             |     |
| t |                                                             |     |
| h |                                                             |     |
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| n |                                                             |     |
| a |                                                             |     |
| t |                                                             |     |
| t |                                                             |     |
| a |                                                             |     |
| c |                                                             |     |
| h |                                                             |     |
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+---+-------------------------------------------------------------+-----+
|   | \(A\) Prohibition against assuming liabilities or           |     |
|   | obligations of others.                                      |     |
+---+-------------------------------------------------------------+-----+
|   | \(B\) Restriction on dividend payments.                     |     |
|   |                                                             |     |
+---+-------------------------------------------------------------+-----+
|   | \(C\) Limitation on the purchase or sale of equipment and   |     |
|   | fixed assets.                                               |     |
+---+-------------------------------------------------------------+-----+
|   | \(D\) Limitation on compensation of officers and owners.    |     |
|   |                                                             |     |
+---+-------------------------------------------------------------+-----+
|   | \(E\) Minimum working capital or current ratio requirement. |     |
|   |                                                             |     |
+---+-------------------------------------------------------------+-----+
|   | \(F\) Maximum debt-to-net worth ratio.                      |     |
|   |                                                             |     |
+---+-------------------------------------------------------------+-----+
|   | \(G\) Restrictions concerning consolidations, mergers, or   |     |
|   | other circumstances.                                        |     |
+---+-------------------------------------------------------------+-----+
|   | \(H\) Limitations on selling the business without the       |     |
|   | concurrence of the lender.                                  |     |
+---+-------------------------------------------------------------+-----+
|   | \(I\) Repayment and amortization of the loan.               |     |
|   |                                                             |     |
+---+-------------------------------------------------------------+-----+
|   | \(J\) List of collateral and lien priority for the loan     |     |
|   | including a list of persons and corporations guaranteeing   |     |
|   | the loan with a schedule for providing the lender with      |     |
|   | personal and corporate financial statements. Financial      |     |
|   | statements on the corporate and personal guarantors must be |     |
|   | updated at least annually once the guarantee is provided.   |     |
+---+-------------------------------------------------------------+-----+
|   | \(K\) Type and frequency of financial statements to be      |     |
|   | required from the borrower for the duration of the loan.    |     |
+---+-------------------------------------------------------------+-----+
|   | \(L\) The addition of any requirements imposed by the       |     |
|   | Agency in Form RD 4279-3.                                   |     |
+---+-------------------------------------------------------------+-----+
|   | \(M\) A reserved section for any Agency environmental       |     |
|   | requirement.                                                |     |
+---+-------------------------------------------------------------+-----+
|   | \(N\) A provision for the lender or the Agency to have      |     |
|   | reasonable access to the project and its performance        |     |
|   | information during its useful life or the term of the loan, |     |
|   | whichever is greater, including the periodic inspection of  |     |
|   | the project by a representative of the Lender or the        |     |
|   | Agency.                                                     |     |
+---+-------------------------------------------------------------+-----+