**United States Department of Agriculture**

**Rural Development**

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

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

**[Energy Efficiency Improvements Grant Program]{.underline}**

**Guaranteed Loan Application Template**

**Loan of \$600,000 or More**

**Or**

**Combination Grant and Guaranteed Loan Application Template**

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

+--------------------------------------------------------------------+---+
| **The guaranteed loan application template -- and the combination  |   |
| grant and guaranteed loan application template - for guaranteed    |   |
| loans of \$600,000 or more -** 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 Georgia Rural Development     |   |
| Business and Cooperative Program website at:                       |   |
| www.rurdev.usda.gov/ga/rbs.htm - click on energy program, then     |   |
| click on guaranteed loan information.                              |   |
+--------------------------------------------------------------------+---+
| **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** of the application must be submitted to |   |
| the                                                                |   |
|                                                                    |   |
| Georgia Rural Development State Office,                            |   |
|                                                                    |   |
| Attn: Business-Cooperative Programs                                |   |
|                                                                    |   |
| 355 E. Hancock Ave.                                                |   |
|                                                                    |   |
| Athens, GA 30601                                                   |   |
+--------------------------------------------------------------------+---+
| **A project with total eligible project costs of [more than        |   |
| \$200,000]{.underline} can 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 Grant Program]{.underline}**

**Guaranteed Loan Application**

**Loan of \$600,000 or More**

> **Title of Project:      **

**[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 more**

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

**4280.128 (b) Application content for guaranteed loans greater than
\$600,000.** Applications and documentation for guaranteed loans greater
than \$600,000 [must]{.underline} provide the required information
organized pursuant to a Table of Contents in a chapter format presented
in the order shown in paragraphs (b) (1) and (2).

Begin pagination immediately following the Table of Contents.

+--------+------+-----------------------------------------------+-----+
|        | 4280 | **G- Loan Application Components - \$600,000  | *   |
|        | .111 | or more**                                     | *Ta |
|        | (b)  |                                               | b** |
+--------+------+-----------------------------------------------+-----+
| **     | \    | Table of Contents                             |     |
| Applic | (2\) |                                               |     |
| ant/** |      |                                               |     |
|        |      |                                               |     |
| **Borr |      |                                               |     |
| ower** |      |                                               |     |
+--------+------+-----------------------------------------------+-----+
|        | \    | 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)  |                                               |     |
+--------+------+-----------------------------------------------+-----+
|        | \(i  | Feasibility Study                             | G   |
|        | ii\) |                                               |     |
+--------+------+-----------------------------------------------+-----+
|        |      |                                               |     |
+--------+------+-----------------------------------------------+-----+
| **Le   | 4280 | 4279-1 "Application for Loan Guarantee"       | H   |
| nder** | .128 |                                               |     |
|        |      |                                               |     |
|        | (    |                                               |     |
|        | b)(2 |                                               |     |
|        | )(i) |                                               |     |
+--------+------+-----------------------------------------------+-----+
|        | \(   | 1940-20 "Request for Environmental            | I   |
|        | ii\) | Information" and attachments                  |     |
+--------+------+-----------------------------------------------+-----+
|        | \    | Lender's complete written credit analysis     | J   |
|        | (x\) |                                               |     |
+--------+------+-----------------------------------------------+-----+
|        | \(x  | Proposed loan agreement                       | K   |
|        | ii\) |                                               |     |
+--------+------+-----------------------------------------------+-----+

**Table of Contents for**

**Combination Grant and Guaranteed Loan**

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

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

(1) **Guaranteed loan application content.** Applications and
    documentation for guaranteed loans \$600,000 or more 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.

+--------+------+-----------------------------------------------+-----+
|        | 4280 | **G- Loan Application Components -- Exceeding | *   |
|        | .128 | \$600,000**                                   | *Ta |
|        | (b   |                                               | b** |
|        | )(1) |                                               |     |
+--------+------+-----------------------------------------------+-----+
| **     | \    | Table of Contents                             |     |
| Applic | (i\) |                                               |     |
| ant/** |      |                                               |     |
|        |      |                                               |     |
| **Borr |      |                                               |     |
| ower** |      |                                               |     |
+--------+------+-----------------------------------------------+-----+
|        | \(   | Project Summary                               | A   |
|        | ii\) |                                               |     |
|        |      | A. Title of Project                           |     |
|        |      |                                               |     |
|        |      | B. Borrower eligibility                       |     |
|        |      |                                               |     |
|        |      | C. Project Eligibility                        |     |
|        |      |                                               |     |
|        |      | D. Operation Description                      |     |
+--------+------+-----------------------------------------------+-----+
|        | \(i  | Financial Information for Size Determination  | B   |
|        | ii\) |                                               |     |
+--------+------+-----------------------------------------------+-----+
|        | \(   | Matching Funds Documentation                  | C   |
|        | iv\) |                                               |     |
+--------+------+-----------------------------------------------+-----+
|        | \    | Self Evaluation Score                         | D   |
|        | (v\) |                                               |     |
|        |      | Documentation is tabbed to match the scoring  |     |
|        |      | criteria numbering 1-10.                      |     |
+--------+------+-----------------------------------------------+-----+
|        |      | Energy Audit *(needed only if the project is  | E   |
|        |      | an energy efficiency project)*                |     |
+--------+------+-----------------------------------------------+-----+
|        | \(   | Technical Report *(in accordance with         | F   |
|        | vi\) | Appendix B)*                                  |     |
+--------+------+-----------------------------------------------+-----+
|        | \(v  | Feasibility Study                             | G   |
|        | ii\) |                                               |     |
+--------+------+-----------------------------------------------+-----+
| **Le   | 4280 |                                               |     |
| nder** | .128 |                                               |     |
|        |      |                                               |     |
|        | (b   |                                               |     |
|        | )(2) |                                               |     |
+--------+------+-----------------------------------------------+-----+
|        | \    | 4279-1 "Application for Loan Guarantee" with  | H   |
|        | (i\) | attachments                                   |     |
+--------+------+-----------------------------------------------+-----+
|        |      | 21\. Business Plan                            |     |
+--------+------+-----------------------------------------------+-----+
|        |      | 24\. Form 10-K "Annual Report Pursuant to     |     |
|        |      | Section 13 or 15D of the Act of 1934"         |     |
|        |      |                                               |     |
|        |      | *-- For companies listed on major stock       |     |
|        |      | exchanges and/or subject to the Securities    |     |
|        |      | and Exchange Commission regulations.*         |     |
+--------+------+-----------------------------------------------+-----+
|        |      | 27\. Architectural or Engineering Plans *(if  |     |
|        |      | applicable)*                                  |     |
+--------+------+-----------------------------------------------+-----+
|        |      | 28\. Cost estimates and forecasts of          |     |
|        |      | contingency funds to cover cost increases or  |     |
|        |      | project changes.                              |     |
+--------+------+-----------------------------------------------+-----+
|        |      | 30\. Record of any pending or final           |     |
|        |      | regulatory or legal (civil or criminal)       |     |
|        |      | action against the business, parent,          |     |
|        |      | affiliate, proposal guarantors, subsidiaries, |     |
|        |      | principal stockholders, officers, and         |     |
|        |      | directors.                                    |     |
+--------+------+-----------------------------------------------+-----+
|        | \(   | 1940-20 "Request for Environmental            | I   |
|        | ii\) | Information" and attachments                  |     |
+--------+------+-----------------------------------------------+-----+
|        | \(i  | Personal Credit reports                       | J   |
|        | ii\) |                                               |     |
+--------+------+-----------------------------------------------+-----+
|        | \(   | Appraisals                                    | K   |
|        | iv\) |                                               |     |
+--------+------+-----------------------------------------------+-----+
|        | \    | Commercial Credit reports                     | L   |
|        | (v\) |                                               |     |
+--------+------+-----------------------------------------------+-----+
|        | \(   | Current personal and corporate financial      | M   |
|        | vi\) | statements of any guarantors                  |     |
+--------+------+-----------------------------------------------+-----+
|        | \(vi | Financial Information                         | N   |
|        | ii\) |                                               |     |
|        |      | 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                                 |     |
+--------+------+-----------------------------------------------+-----+
|        | \    | Lender's complete written credit analysis     | O   |
|        | (x\) |                                               |     |
+--------+------+-----------------------------------------------+-----+
|        | \(x  | Proposed loan agreement                       | P   |
|        | ii\) |                                               |     |
+--------+------+-----------------------------------------------+-----+

**Table of Contents for**

**Combination Grant and Guaranteed Loan**

**G- loan Exceeding \$600,000**

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

**4280.128 (b) Application content for guaranteed loans greater than
\$600,000.** Applications and documentation for guaranteed loans greater
than \$600,000 [must]{.underline} provide the required information
organized pursuant to a Table of Contents in a chapter format presented
in the order shown in paragraphs (b) (1) and (2).

Begin pagination immediately following the Table of Contents.

+--------+------+-----------------------------------------------+-----+
|        |      | **Application Components**                    | *   |
|        |      |                                               | *Ta |
|        |      | **Combination Grant and Guaranteed Loan**     | b** |
|        |      |                                               |     |
|        |      | **G-loan Exceeding \$600,000**                |     |
+--------+------+-----------------------------------------------+-----+
| **     |      | Total eligible project costs exceed           | Gr  |
| Applic |      | \$200,000, therefore the applicant will file  | ant |
| ant/** |      | a Full Grant Application. *The full grant     |     |
|        |      | application includes financial statements as  |     |
| **Borr |      | specified in 4280.128 (b) (2) (viii).*        |     |
| ower** |      |                                               |     |
+--------+------+-----------------------------------------------+-----+
|        |      | Use only the divider pages H through M and O  |     |
|        |      | through Q.                                    |     |
+--------+------+-----------------------------------------------+-----+
| **Le   | 4280 |                                               |     |
| nder** | .128 |                                               |     |
|        |      |                                               |     |
|        | (b   |                                               |     |
|        | )(2) |                                               |     |
+--------+------+-----------------------------------------------+-----+
|        | \    | 4279-1 "Application for Loan Guarantee" with  | H   |
|        | (i\) | attachments                                   |     |
+--------+------+-----------------------------------------------+-----+
|        |      | 21\. Business Plan                            |     |
+--------+------+-----------------------------------------------+-----+
|        |      | 24\. Form 10-K "Annual Report Pursuant to     |     |
|        |      | Section 13 or 15D of the Act of 1934"         |     |
|        |      |                                               |     |
|        |      | *-- For companies listed on major stock       |     |
|        |      | exchanges and/or subject to the Securities    |     |
|        |      | and Exchange Commission regulations.*         |     |
+--------+------+-----------------------------------------------+-----+
|        |      | 27\. Architectural or Engineering Plans *(if  |     |
|        |      | applicable)*                                  |     |
+--------+------+-----------------------------------------------+-----+
|        |      | 28\. Cost estimates and forecasts of          |     |
|        |      | contingency funds to cover cost increases or  |     |
|        |      | project changes.                              |     |
+--------+------+-----------------------------------------------+-----+
|        |      | 30\. Record of any pending or final           |     |
|        |      | regulatory or legal (civil or criminal)       |     |
|        |      | action against the business, parent,          |     |
|        |      | affiliate, proposal guarantors, subsidiaries, |     |
|        |      | principal stockholders, officers, and         |     |
|        |      | directors.                                    |     |
+--------+------+-----------------------------------------------+-----+
|        | \(   | 1940-20 "Request for Environmental            | I   |
|        | ii\) | Information" and attachments                  |     |
+--------+------+-----------------------------------------------+-----+
|        | \(i  | Personal Credit reports                       | J   |
|        | ii\) |                                               |     |
+--------+------+-----------------------------------------------+-----+
|        | \(   | Appraisals                                    | K   |
|        | iv\) |                                               |     |
+--------+------+-----------------------------------------------+-----+
|        | \    | Commercial Credit reports                     | L   |
|        | (v\) |                                               |     |
+--------+------+-----------------------------------------------+-----+
|        | \(   | Current personal and corporate financial      | M   |
|        | vi\) | statements of any guarantors                  |     |
+--------+------+-----------------------------------------------+-----+
|        | \    | Lender's complete written credit analysis     | O   |
|        | (x\) |                                               |     |
+--------+------+-----------------------------------------------+-----+
|        | \(x  | Proposed loan agreement                       | P   |
|        | ii\) |                                               |     |
+--------+------+-----------------------------------------------+-----+

+-----------------------------------------------------+-------+-------+
| **Tab A**                                           |       |       |
|                                                     |       |       |
| Divider Page                                        |       |       |
+-----------------------------------------------------+-------+-------+
|                                                     |       |       |
+-----------------------------------------------------+-------+-------+
| **Project Summary** *4280.111 (b) (3) (i) through   |       |       |
| (v)*                                                |       |       |
+-----------------------------------------------------+-------+-------+
| Put a check or an "x"                               |       |       |
|                                                     |       |       |
| if the item is included                             |       |       |
|                                                     |       |       |
| 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          | **    |       |
| pre-commercial technology                           | A-3** |       |
+-----------------------------------------------------+-------+-------+
| Third party contracts for management and            | **    |       |
| maintenance                                         | A-4** |       |
|                                                     |       |       |
| *(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:

     

**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>:

[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]{.underline} 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.

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):

[\_]{.underline}[\_]{.underline} a renewable energy system, or

[\_]{.underline}[\_]{.underline} energy efficiency improvements.

A description of my project is:

**     **

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

[\_]{.underline}[\_]{.underline} commercially available and replicable
technology, [or]{.underline}

[\_]{.underline}[\_]{.underline} pre-commercial and replicable
technology.

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).

[\_]{.underline}[\_]{.underline}Yes, 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? [\_]{.underline}[\_]{.underline} Yes
[\_]{.underline}[\_]{.underline} No

Does the owner control the revenues and expenses of the project,
including operation and maintenance?

[\_]{.underline}[\_]{.underline}Yes [\_]{.underline}[\_]{.underline}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?
[\_]{.underline}[\_]{.underline}Yes [\_]{.underline}[\_]{.underline} 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.

     

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.

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:]{.underline}

     

**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]{.underline}
the year in which you submit your application.

1 \_\_\_\_\_\_\_\_\_     \_\_\_\_\_\_\_\_\_\_Schedule F -- line 3 and 4
(gross market value of agricultural products)

2 \_\_\_\_\_\_\_\_\_     \_\_\_\_\_\_\_\_\_\_Schedule F -- line 11
(gross agricultural income)

3 \_\_\_\_\_\_\_\_\_     \_\_\_\_\_\_\_\_\_\_ Line 22 of IRS form 1040 +
line 28 and 30 from Schedule C (gross non-farm income)

\_\_\_\_[     ]{.underline}\_\_\_\_ +
\_\_\_\_\_\_\_\_\_     \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

+-----------------------------------------------------+-----------------+
| **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

Total Cost \$\_\_\_\_\_\_\_\_\_\_\_\_\_\_

+---+----------+-----------+-------+-----------+-------+-------+------+
|   | **Source | **Contact | **Co  | **Contact | *     | **S   | *    |
|   | of       | Name**    | ntact | Address** | *Doll | tatus | *Att |
|   | Funds**  |           | Phone |           | ars** | of    | achm |
|   |          |           | &     |           |       | Fu    | ents |
|   |          |           | Fax** |           |       | nds** | to   |
|   |          |           |       |           |       |       | ve   |
|   |          |           |       |           |       |       | rify |
|   |          |           |       |           |       |       | s    |
|   |          |           |       |           |       |       | tatu |
|   |          |           |       |           |       |       | s?** |
+---+----------+-----------+-------+-----------+-------+-------+------+
|   |          |           |       |           |       |       |      |
+---+----------+-----------+-------+-----------+-------+-------+------+
| 1 |          | Area      | Area  | Area      | \$    | Pe    | No   |
|   |  Section | Office    | O     | Office    |       | nding |      |
|   | 9006     | S         | ffice | Address   |       | award |      |
|   | Grant    | pecialist | Phone |           |       | of    |      |
|   |          |           |       |           |       | grant |      |
|   |          |           | Area  |           |       |       |      |
|   |          |           | O     |           |       |       |      |
|   |          |           | ffice |           |       |       |      |
|   |          |           | Fax   |           |       |       |      |
+---+----------+-----------+-------+-----------+-------+-------+------+
| 2 |      A   |           |       |           | \$    |       |      |
|   | pplicant | Applicant |  Appl | Applicant |       |  Comm |    A |
|   | funds    | Name      | icant | Address   |       | itted | ppli |
|   |          |           | Bus   |           |       |       | cant |
|   |          |           | iness |           |       |       | le   |
|   |          |           | Phone |           |       |       | tter |
|   |          |           | and   |           |       |       | of   |
|   |          |           | Fax   |           |       |       | co   |
|   |          |           |       |           |       |       | mmit |
|   |          |           |       |           |       |       | ment |
|   |          |           |       |           |       |       | or   |
|   |          |           |       |           |       |       | bank |
|   |          |           |       |           |       |       | s    |
|   |          |           |       |           |       |       | tate |
|   |          |           |       |           |       |       | ment |
+---+----------+-----------+-------+-----------+-------+-------+------+
| 3 |          |           |       |           | \$    |       |      |
|   |          |           |       |           |       |       |      |
+---+----------+-----------+-------+-----------+-------+-------+------+
| 4 |          |           |       |           | \$    |       |      |
|   |          |           |       |           |       |       |      |
+---+----------+-----------+-------+-----------+-------+-------+------+
| 5 |          |           |       |           | \$    |       |      |
|   |          |           |       |           |       |       |      |
+---+----------+-----------+-------+-----------+-------+-------+------+
| 6 |          |           |       |           | \$    |       |      |
|   |          |           |       |           |       |       |      |
+---+----------+-----------+-------+-----------+-------+-------+------+
|   | Amount   |           |       |           | \$    |       |      |
|   | of this  |           |       |           |       |       |      |
|   | gu       |           |       |           |       |       |      |
|   | aranteed |           |       |           |       |       |      |
|   | loan     |           |       |           |       |       |      |
|   | app      |           |       |           |       |       |      |
|   | lication |           |       |           |       |       |      |
|   | request  |           |       |           |       |       |      |
+---+----------+-----------+-------+-----------+-------+-------+------+
|   |          |           |       | 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       |                 |
| Guideline to complete the evaluation.               |                 |
+-----------------------------------------------------+-----------------+
| 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]{.underline} by the agricultural producer

or rural small business, and will provide energy replacement of:

+--------------------------------------------------------------+-------+
| Greater than 0 but equal to or more than 25%, **award 5      | P     |
| points.**                                                    | oints |
|                                                              |       |
|                                                              |       |
+--------------------------------------------------------------+-------+
| Greater than 25%, but equal to or more 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\_\_\_\_.*

*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.**         | P     |
|                                                              | oints |
|                                                              |       |
|                                                              |       |
+--------------------------------------------------------------+-------+
| 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 | P     |
| or more]{.underline} AND opts to obtain a professional       | oints |
| energy audit, **award an additional 5 points**.              |       |
|                                                              |       |
+--------------------------------------------------------------+-------+

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

*You have identified this documentation via tab #\_\_\_1\_\_\_\_.*

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

***or***

\(iii\) Energy generation

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

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

*You have identified this documentation via tab #\_\_\_1\_\_\_\_.*

*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      | Po   |
| environmental goals and objectives of other Federal, State,   | ints |
| or 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\_\_\_.*

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

**(3) Commercial availability**

+---------------------------------------------------------------+------+
| If the proposed system or improvement is currently            | Po   |
| commercially available and replicable,                        | ints |
|                                                               |      |
| **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]{.underline} 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\_\_\_\_\_.*

*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  | *    | **%  | *   |
| evaluation.**                                   | *Max | of   | *Sc |
|                                                 | imum | s    | ore |
|                                                 | poss | core | Awa |
|                                                 | ible | a    | rde |
|                                                 | sco  | ward | d** |
|                                                 | re** | ed** |     |
+-------------------------------------------------+------+------+-----+
| \(A\) **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 applicant | 5    |      |     |
| 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 applicant | 30   |      |     |
| 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 applicant | 5    |      |     |
| 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 applicant | 5    |      |     |
| 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  | T    |     |
|                                                 |      | otal |     |
|                                                 |      | S    |     |
|                                                 |      | core |     |
|                                                 |      | Awa  |     |
|                                                 |      | rded |     |
+-------------------------------------------------+------+------+-----+
|                                                 |      |      |     |
+-------------------------------------------------+------+------+-----+
| [Total Score                                    |      | **Po |     |
| Awarded\_\_\_\_\_\_\_\_\_]{.underline}=         |      | ints |     |
| \_\_\_\_\_\_% X 35 total possible points =      |      | a    |     |
|                                                 |      | ward |     |
| Total Possible Score 100                        |      | ed** |     |
+-------------------------------------------------+------+------+-----+

*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**\_\_\_\_\_.*

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

**Page 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,      | Points |
| **award 5 points**.                                         |        |
|                                                             |        |
+-------------------------------------------------------------+--------+
| 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\_\_\_\_.*

*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:

+-------------------------------------------------------------+--------+
| more than \$600,000 in the preceding year, **award 5        | Points |
| points**.                                                   |        |
|                                                             |        |
+-------------------------------------------------------------+--------+
| more than \$200,000 in the preceding year,                  |        |
|                                                             |        |
| **OR**                                                      |        |
|                                                             |        |
| is a Very Small Rural Business as defined in 4280.103 (a    |        |
| business with more than 15 employees and more 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\_\_\_\_\_.*

*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     | Points |
| application process **or** if the project has total         |        |
| eligible project costs of \$200,000 or more, **award 5      |        |
| points.**                                                   |        |
+-------------------------------------------------------------+--------+

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

*You have identified this documentation via tab #\_\_\_7\_\_\_\_.*

*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 | Points |
| this program within the 2 previous Federal fiscal years,    |        |
| **award 5 points.**                                         |        |
+-------------------------------------------------------------+--------+

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

*You have identified this documentation via tab #\_\_8\_\_\_\_\_.*

*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

+-------------------------------------------------------------+--------+
| More than 4 years, **award 10 points**.                     | Points |
|                                                             |        |
|                                                             |        |
+-------------------------------------------------------------+--------+
| 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\_\_\_\_.*

*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         | Points |
| published in the Wall Street Journal) plus 1.5 percent,     |        |
| **award 5 points**. **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\_\_\_\_\_.*

*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]{.underline} project costs          |                 |
| [greater]{.underline} than \$50,000, **an energy    |                 |
| audit must be**                                     |                 |
|                                                     |                 |
| **conducted by or reviewed and certified by an      |                 |
| energy auditor.**                                   |                 |
+-----------------------------------------------------+-----------------+
| [**Energy audit**]{.underline} -- 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)*             |        |
+-------------------------------------------------------------+--------+
| Put a check or an "x"                                       |        |
|                                                             |        |
| if the item is included                                     |        |
|                                                             |        |
| behind this divider                                         |        |
|                                                             |        |
| page.                                                       |        |
+-------------------------------------------------------------+--------+
| **4280.128(c)(1)(ii)**                                      |        |
|                                                             |        |
| **(B)** For renewable energy projects and energy efficiency |        |
| projects utilizing [pre-commercial technology]{.underline}  |        |
| or with [total eligible project costs]{.underline}          |        |
| **[greater than \$200,000]{.underline}**, submit a          |        |
| Technical Report as described in **[Appendix                |        |
| B]{.underline}** 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.**                 |        |
|                                                             |        |
| -   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   |        |
| B** of this subpart. Any Technical Report [not prepared in  |        |
| the following]{.underline} [format]{.underline} and in      |        |
| accordance with Appendix B, **will be penalized under       |        |
| scoring for technical merit.**                              |        |
+-------------------------------------------------------------+--------+
| **Technical Report Requirements**                           |        |
+-------------------------------------------------------------+--------+
| \(1\) **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)*              |           |
+----------------------------------------------------------+-----------+
| 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]{.underline} [\$200,000]{.underline}, 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.        |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

**[Business-level feasibility study for renewable energy
systems]{.underline}**. For each application for a renewable energy
system project submitted by a start-up or existing business, a
business-level feasibility study by an independent qualified consultant
will be required by the Agency. An acceptable business-level feasibility
study must at least include an evaluation of economic, market,
technical, financial, and management feasibility. [Renewable energy
projects with total eligible project costs of \$200,000 or more are
exempt from the feasibility study requirement]{.underline}

\(a\) [Economic feasibility]{.underline}. Information related to the
project site; availability of trained or trainable labor; utilities;
rail, air, and road service to the site; and the overall economic impact
of the project.

\(b\) [Market feasibility]{.underline}. Information on the sales
organization and management, nature and extent of market and market
area, marketing plans for sale of projected output, extent of
competition, and commitments from customers or brokers.

\(c\) [Technical feasibility]{.underline}. Technical feasibility reports
shall be prepared by individuals who have previous experience in the
design and analysis of similar facilities or processes proposed in the
application. The technical feasibility reports shall address the
suitability of the selected site for the intended use including an
environmental impact analysis. The report shall be based upon verifiable
data and contain sufficient information and analysis so that a
determination may be made on the technical feasibility of achieving the
levels of income or production that are projected in the financial
statements. The report shall also identify any constraints or
limitations in these financial projections and any other facility or
design-related factors which might affect the success of the enterprise.
The report shall also identify and estimate project operating and
development costs and specify the level of accuracy of these estimates
and the assumptions on which these estimates have been based. For the
purpose of the technical feasibility reports, the project engineer or
architect may be considered an independent party provided neither the
principals of the firm nor any individual of the firm who participates
in the technical feasibility report has a financial interest in the
project, and provided further that no other individual or firm with the
expertise necessary to make such a determination is reasonably available
to perform the function.

\(d\) [Financial feasibility]{.underline}. An opinion on the reliability
of the financial projections and the ability of the business to achieve
the projected income and cash flow. An assessment of the cost accounting
system, the availability of short-term credit for seasonal business, and
the adequacy of raw materials and supplies.

\(e\) [Management feasibility]{.underline}. Evidence that continuity and
adequacy of management has been evaluated and documented as being
satisfactory.

+---------------------------------------------------------------+-----+---+
| **Tab H**                                                     |     |   |
|                                                               |     |   |
| Divider Page                                                  |     |   |
+---------------------------------------------------------------+-----+---+
| *4280.128 (b)(2)(i)*                                          | Put |   |
|                                                               | a   |   |
|                                                               | ch  |   |
|                                                               | eck |   |
|                                                               | or  |   |
|                                                               | an  |   |
|                                                               | "x" |   |
|                                                               | if  |   |
|                                                               | the |   |
|                                                               | i   |   |
|                                                               | tem |   |
|                                                               | is  |   |
|                                                               | in  |   |
|                                                               | clu |   |
|                                                               | ded |   |
|                                                               | beh |   |
|                                                               | ind |   |
|                                                               | t   |   |
|                                                               | his |   |
|                                                               | d   |   |
|                                                               | ivi |   |
|                                                               | der |   |
|                                                               | pa  |   |
|                                                               | ge. |   |
+---------------------------------------------------------------+-----+---+
| 4279-1 "Application for Loan Guarantee"                       |     |   |
|                                                               |     |   |
| *(This form is fillable on-line) -- go to*                    |     |   |
|                                                               |     |   |
| <http://www.rurdev.usda.gov/ga/4279-1.pdf>                    |     |   |
+---------------------------------------------------------------+-----+---+
| This certification is located on the 4279-1 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.                                               |     |   |
+---------------------------------------------------------------+-----+---+
|                                                               |     |   |
+---------------------------------------------------------------+-----+---+
| **Attachments**                                               |     |   |
+---------------------------------------------------------------+-----+---+
| Business Plan                                                 | *   |   |
|                                                               | *H- |   |
|                                                               | 1** |   |
+---------------------------------------------------------------+-----+---+
| Form 10-K "Annual Report Pursuant to Section 13 or 15D of the | *   |   |
| Act of 1934" *-- For companies listed on major stock          | *H- |   |
| exchanges and/or subject to the Securities and Exchange       | 2** |   |
| Commission regulations.*                                      |     |   |
+---------------------------------------------------------------+-----+---+
| Architectural or Engineering Plans                            | *   |   |
|                                                               | *H- |   |
|                                                               | 3** |   |
+---------------------------------------------------------------+-----+---+
| Cost estimates and forecasts of contingency funds to cover    | *   |   |
| cost increases or project changes                             | *H- |   |
|                                                               | 4** |   |
+---------------------------------------------------------------+-----+---+
| Record of any pending or final regulatory or legal (civil or  | *   |   |
| criminal) action against the business, parent, affiliate,     | *H- |   |
| proposal guarantors, subsidiaries, principal stockholders,    | 5** |   |
| officers, and directors.                                      |     |   |
+---------------------------------------------------------------+-----+---+

+-----------------------------------------------------------------------+
| **Tab I**                                                             |
|                                                                       |
| Divider Page                                                          |
+-----------------------------------------------------------------------+
| *4280.128 (b)(2)(ii)*                                                 |
+-----------------------------------------------------------------------+
| 1940-20 -- Request for Environmental Information -- and documentation |
|                                                                       |
| *Click here to reach the form:                                        |
| <http://www.rurdev.usda.gov/ga/1940-20.pdf>*                          |
+-----------------------------------------------------------------------+
| *Consult with the Rural Development Area Office Specialist for        |
| documentation needed.*                                                |
+-----------------------------------------------------------------------+

+-----------------------------------------------------------------------+
| **Tab J**                                                             |
|                                                                       |
| Divider Page                                                          |
+-----------------------------------------------------------------------+
| *4280.128 (b) (2) (iii)*                                              |
+-----------------------------------------------------------------------+
| Personal Credit Reports                                               |
|                                                                       |
| 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.                        |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+

+-----------------------------------------------------------------------+
| **Tab K**                                                             |
|                                                                       |
| Divider Page                                                          |
+-----------------------------------------------------------------------+
| *4280.128 (b) (2) (iv)*                                               |
+-----------------------------------------------------------------------+
| Appraisals                                                            |
|                                                                       |
| 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. |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+

+-----------------------------------------------------------------------+
| **Tab L**                                                             |
|                                                                       |
| Divider Page                                                          |
+-----------------------------------------------------------------------+
| *4280.128 (b) (2) (v)*                                                |
+-----------------------------------------------------------------------+
| Commercial Credit Reports                                             |
|                                                                       |
| Commercial credit reports obtained by the lender on the borrower and  |
| any parent, affiliate, and subsidiary firms.                          |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+

+-----------------------------------------------------------------------+
| **Tab M**                                                             |
|                                                                       |
| Divider Page                                                          |
+-----------------------------------------------------------------------+
| *4280.128 (b) (2) (vi)*                                               |
+-----------------------------------------------------------------------+
| Current personal and corporate financial statements of any guarantors |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+

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

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

+--------------------------------------------------------------+-------+
| **Tab N**                                                    |       |
|                                                              |       |
| Divider Page                                                 |       |
+--------------------------------------------------------------+-------+
|                                                              |       |
+--------------------------------------------------------------+-------+
| **Financial Information**                                    |       |
|                                                              |       |
| *4280.111 (b) (4) (i) through (iv)*                          |       |
|                                                              |       |
| *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.        |       |
+--------------------------------------------------------------+-------+
|                                                              |       |
+--------------------------------------------------------------+-------+

+---+----------------------------------------------------------+---------+
| * |                                                          |         |
| * |                                                          |         |
| T |                                                          |         |
| a |                                                          |         |
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| O |                                                          |         |
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|   |                                                          |         |
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| a |                                                          |         |
| g |                                                          |         |
| e |                                                          |         |
+---+----------------------------------------------------------+---------+
|   |                                                          |         |
+---+----------------------------------------------------------+---------+
| * |                                                          |         |
| * |                                                          |         |
| L |                                                          |         |
| e |                                                          |         |
| n |                                                          |         |
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| e |                                                          |         |
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| s |                                                          |         |
| * |                                                          |         |
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|   |                                                          |         |
| * |                                                          |         |
| 4 |                                                          |         |
| 2 |                                                          |         |
| 8 |                                                          |         |
| 0 |                                                          |         |
| . |                                                          |         |
| 1 |                                                          |         |
| 2 |                                                          |         |
| 8 |                                                          |         |
| ( |                                                          |         |
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| ) |                                                          |         |
| ( |                                                          |         |
| 2 |                                                          |         |
| ) |                                                          |         |
| ( |                                                          |         |
| x |                                                          |         |
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| * |                                                          |         |
|   |                                                          |         |
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| * |                                                          |         |
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| c |                                                          |         |
| k |                                                          |         |
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| e |                                                          |         |
| r |                                                          |         |
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| t |                                                          |         |
| o |                                                          |         |
| r |                                                          |         |
| e |                                                          |         |
| a |                                                          |         |
| c |                                                          |         |
| h |                                                          |         |
| c |                                                          |         |
| r |                                                          |         |
| e |                                                          |         |
| d |                                                          |         |
| i |                                                          |         |
| t |                                                          |         |
| q |                                                          |         |
| u |                                                          |         |
| a |                                                          |         |
| l |                                                          |         |
| i |                                                          |         |
| t |                                                          |         |
| y |                                                          |         |
| r |                                                          |         |
| e |                                                          |         |
| q |                                                          |         |
| u |                                                          |         |
| i |                                                          |         |
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| e |                                                          |         |
| m |                                                          |         |
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| t |                                                          |         |
| s |                                                          |         |
| * |                                                          |         |
| * |                                                          |         |
| . |                                                          |         |
| * |                                                          |         |
+---+----------------------------------------------------------+---------+
|   |                                                          | Put a   |
|   |                                                          | check   |
|   |                                                          | or an   |
|   |                                                          | "x" if  |
|   |                                                          | the     |
|   |                                                          | item is |
|   |                                                          | i       |
|   |                                                          | ncluded |
|   |                                                          | behind  |
|   |                                                          | this    |
|   |                                                          | divider |
|   |                                                          | page.   |
+---+----------------------------------------------------------+---------+
| L |                                                          | *     * |
| e |                                                          |         |
| n |                                                          |         |
| d |                                                          |         |
| e |                                                          |         |
| r |                                                          |         |
| ' |                                                          |         |
| s |                                                          |         |
| c |                                                          |         |
| o |                                                          |         |
| m |                                                          |         |
| p |                                                          |         |
| l |                                                          |         |
| e |                                                          |         |
| t |                                                          |         |
| e |                                                          |         |
| w |                                                          |         |
| r |                                                          |         |
| i |                                                          |         |
| t |                                                          |         |
| t |                                                          |         |
| e |                                                          |         |
| n |                                                          |         |
| a |                                                          |         |
| n |                                                          |         |
| a |                                                          |         |
| l |                                                          |         |
| y |                                                          |         |
| s |                                                          |         |
| i |                                                          |         |
| s |                                                          |         |
| , |                                                          |         |
| i |                                                          |         |
| n |                                                          |         |
| c |                                                          |         |
| l |                                                          |         |
| u |                                                          |         |
| d |                                                          |         |
| i |                                                          |         |
| n |                                                          |         |
| g |                                                          |         |
| : |                                                          |         |
+---+----------------------------------------------------------+---------+
|   | -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.                  |         |
+---+----------------------------------------------------------+---------+
| T |                                                          |         |
| h |                                                          |         |
| e |                                                          |         |
| l |                                                          |         |
| e |                                                          |         |
| n |                                                          |         |
| d |                                                          |         |
| e |                                                          |         |
| r |                                                          |         |
| ' |                                                          |         |
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| a |                                                          |         |
| l |                                                          |         |
| y |                                                          |         |
| s |                                                          |         |
| i |                                                          |         |
| s |                                                          |         |
| m |                                                          |         |
| u |                                                          |         |
| s |                                                          |         |
| t |                                                          |         |
| a |                                                          |         |
| d |                                                          |         |
| d |                                                          |         |
| r |                                                          |         |
| e |                                                          |         |
| s |                                                          |         |
| s |                                                          |         |
| t |                                                          |         |
| h |                                                          |         |
| e |                                                          |         |
| : |                                                          |         |
+---+----------------------------------------------------------+---------+
|   | 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)**                                                  |
|                                                                       |
| **(x)** 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.                              |
| >                                                                     |
| > Cash equity injection, as discussed in paragraphs (d)(1) 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 more]{.underline}, borrowers shall demonstrate         |
| >                                                                     |
| > evidence of [cash equity injection]{.underline} in the project of   |
| > [not less than 25 percent of eligible project costs]{.underline}.   |
| > 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]{.underline} 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.                                            |
+-----------------------------------------------------------------------+

+---+------------------------------------------------------------+------+
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+---+------------------------------------------------------------+------+
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+---+------------------------------------------------------------+------+
|   |                                                            |      |
+---+------------------------------------------------------------+------+
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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.                                      |      |
+---+------------------------------------------------------------+------+