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**B&I GUARANTEED LOAN PROGRAM**

**COMPARED TO**

**9006 RENEWABLE ENERGY GUARANTEED LOAN PROGRAM**

+------------------+---------------------------+----------------------+
|                  | **B&I**                   | **Renewable Energy** |
+------------------+---------------------------+----------------------+
| **LOAN AMOUNTS** | No minimum                | Minimum \$5,000      |
|                  |                           |                      |
|                  | Maximum \$10 million with | Maximum \$10 million |
|                  | some exceptions up to     | or 50% of total      |
|                  | \$25 million and up to    | eligible project     |
|                  | \$40 million on rural     | costs, whichever is  |
|                  | cooperative organizations | less.                |
|                  | that process value-added  |                      |
|                  | agricultural commodities. |                      |
+------------------+---------------------------+----------------------+
| **ELIGIBLE LOAN  | \* Business and           | \* Post application  |
| PURPOSES**       | industrial acquisitions   | purchase and         |
|                  |                           | installation of      |
|                  | \* Purchase of land,      | equipment            |
|                  | machinery and             |                      |
|                  |                           | \* Post application  |
|                  | equipment                 | construction or      |
|                  |                           | project improvements |
|                  | \* Construction,          |                      |
|                  | enlargement or            | \* Energy audits and |
|                  |                           | assessments          |
|                  | modernization             |                      |
|                  |                           | \* Permit and        |
|                  | \* Eligible fees and      | license fees         |
|                  | costs                     |                      |
|                  |                           | \* Professional      |
|                  | \* Educational or         | service fees         |
|                  | training facilities       |                      |
|                  |                           | \* Feasibility       |
|                  | \* Tourist facilities     | Study, Business Plan |
|                  |                           |                      |
|                  | \* Hotels/motels          | \* Retrofitting      |
|                  |                           |                      |
|                  | \* Pollution control or   | \* Construction of a |
|                  | abatement                 | new energy           |
|                  |                           |                      |
|                  | \* Recreation facilities  | efficient facility   |
|                  |                           | only when the        |
|                  | \* Working capital        |                      |
|                  |                           | facility is used for |
|                  | \* Refinancing when it is | the same purpose,    |
|                  | determined that           |                      |
|                  |                           | is approximately the |
|                  | refinancing is necessary  | same size, and       |
|                  | to improve cash           |                      |
|                  |                           | based on the energy  |
|                  | flow and create new or    | audit will           |
|                  | save existing jobs.       |                      |
|                  |                           | provide more energy  |
|                  | \* Commercially available | savings than         |
|                  | energy projects           |                      |
|                  |                           | improving an         |
|                  | that produce biomass fuel | existing facility.   |
|                  | or biogas.                |                      |
|                  |                           | \* Working capital   |
|                  |                           | and land acquisition |
+------------------+---------------------------+----------------------+
| **INELIGIBLE     | \* Relocate jobs or to    | \* Residential       |
| LOAN PURPOSES**  | expand a business where   | projects             |
|                  |                           |                      |
|                  | an excess of supply of    | \* Debt refinancing  |
|                  | the goods or services     |                      |
|                  |                           | \* Any line of       |
|                  | already exists            | credit               |
|                  |                           |                      |
|                  | \* Pay any distribution   | \* Agricultural      |
|                  | to an owner or            | tillage equipment    |
|                  |                           |                      |
|                  | beneficiary who will      | \* Used equipment    |
|                  | continue in the           |                      |
|                  |                           | *(remanufactured is  |
|                  | business                  | OK)*                 |
|                  |                           |                      |
|                  | \* Transfer the ownership | \* Vehicles          |
|                  | of a business unless      |                      |
|                  |                           | \*Application        |
|                  | the transfer is necessary | preparation fee      |
|                  | to keep the               |                      |
|                  |                           |                      |
|                  | business from closing     |                      |
|                  |                           |                      |
|                  | \* Finance charitable,    |                      |
|                  | religious or fraternal    |                      |
|                  |                           |                      |
|                  | organizations             |                      |
|                  |                           |                      |
|                  | \* Finance agricultural   |                      |
|                  | production with the       |                      |
|                  |                           |                      |
|                  | exception of specialized  |                      |
|                  | crops                     |                      |
|                  |                           |                      |
|                  | \* Finance golf courses,  |                      |
|                  | racetracks and            |                      |
|                  |                           |                      |
|                  | gambling facilities       |                      |
|                  |                           |                      |
|                  | \* Any line of credit or  |                      |
|                  | revolving loan            |                      |
+------------------+---------------------------+----------------------+
| **TERMS**        | 30 years for real estate  | 30 years for real    |
|                  |                           | estate               |
|                  | 15 years or useful life   |                      |
|                  | of equipment              | 20 years or useful   |
|                  |                           | life of equipment    |
|                  | 7 years for working       |                      |
|                  | capital                   | 7 years for working  |
|                  |                           | capital              |
+------------------+---------------------------+----------------------+

+------------------+-------------------------+------------------------+
| **TYPES OF       | \* 80% maximum          | \* 85% maximum         |
| ASSISTANCE**     | guarantee on loans      | guarantee on loans     |
|                  |                         |                        |
|                  | up to and including \$5 | \$600,000 or less      |
|                  | million                 |                        |
|                  |                         | \* 80% maximum         |
|                  | \* 70% maximum          | guarantee on loans     |
|                  | guarantee on loans      | more than \$600,000    |
|                  | greater than \$5        | but less than \$5      |
|                  | million and up to and   | million                |
|                  | including\              |                        |
|                  | \$10 million\* 60%      | \* 70% maximum         |
|                  | maximum guarantee loans | guarantee on loans     |
|                  | greater than \$10       |                        |
|                  | million                 | \$5 million up to and  |
|                  |                         | including\             |
|                  |                         | \$10 million           |
+------------------+-------------------------+------------------------+
| **EQUITY**       | **Tangible balance      | **Cash equity**        |
|                  | sheet equity**          | requirement:           |
|                  | requirement:            |                        |
|                  |                         | \* 15% for loans       |
|                  | \* 10% for existing     | \$600,000 or less      |
|                  | business                |                        |
|                  |                         | \* 25% for loans       |
|                  | \* 20% for startup      | greater than \$600,000 |
|                  |                         |                        |
|                  | \* 25-40% for energy    | May use market value   |
|                  | projects                | of real estate equity  |
|                  |                         | pledged as collateral. |
|                  | Determined in           |                        |
|                  | accordance with         |                        |
|                  | Generally Accepted      |                        |
|                  | Accounting Principles   |                        |
+------------------+-------------------------+------------------------+
| **COLLATERAL**   | Real estate - 80% of    | Real estate - 80% of   |
|                  | appraisal value         | appraisal value        |
|                  |                         |                        |
|                  | M&E -- 70% of appraised | M&E -- 70% of          |
|                  | value                   | appraised value        |
+------------------+-------------------------+------------------------+
| **FEES**         | **Guarantee fee:** 2%   | **Guarantee fee**: 1%  |
|                  | of the guaranteed       | of the guaranteed      |
|                  | portion of the loan     | portion of the loan    |
|                  | payable to USDA Rural   | payable to USDA Rural  |
|                  | Development when the    | Development when the   |
|                  | guarantee is issued.    | guarantee is issued.   |
|                  |                         |                        |
|                  | \-\-\-\-\-\-\-\-\       | \-\                    |
|                  | -\-\-\-\-\-\-\-\-\-\-\- | -\-\-\-\-\-\-\-\-\-\-\ |
|                  | \-\-\-\-\-\-\-\-\-\-\-\ | -\-\-\-\-\-\-\-\-\-\-\ |
|                  | -\-\-\-\-\-\-\-\-\-\-\- | -\-\-\-\-\-\-\-\-\-\-\ |
|                  | \-\-\-\-\-\-\-\-\-\-\-- | -\-\-\-\-\-\-\-\-\-\-- |
|                  |                         |                        |
|                  | ***Annual renewal       | ***Annual renewal      |
|                  | fee***: *0.25%*         | fee**: 0.125%*         |
|                  |                         |                        |
|                  | *(Based on the          | *(Based on the         |
|                  | outstanding balance of  | outstanding balance of |
|                  | the guaranteed portion  | the guaranteed portion |
|                  | of the loan as of       | of the loan as of      |
|                  | December 31^st^.)*      | December 31^st^.)*     |
+------------------+-------------------------+------------------------+
| **ELIGIBLE       | Any area other than a   | Any area other than a  |
| AREAS**          | city or town that has a | city or town that has  |
|                  | population of greater   | a population of        |
|                  | than 50,000 inhabitants | greater than 50,000    |
|                  | and the urbanized area  | inhabitants and the    |
|                  | contiguous and adjacent | urbanized area         |
|                  | to such city or town as | contiguous and         |
|                  | defined by the latest   | adjacent to such city  |
|                  | decennial census of the | or town as defined by  |
|                  | United States.          | the latest decennial   |
|                  |                         | census of the United   |
|                  |                         | States.                |
+------------------+-------------------------+------------------------+
| **ELIGIBLE       | Federal or State        | Federal or State       |
| LENDERS**        | chartered bank, Farm    | chartered bank, Farm   |
|                  | Credit Bank, or other   | Credit Bank, or other  |
|                  | Farm Credit             | Farm Credit            |
|                  | institutions with       | institutions with      |
|                  | direct lending          | direct lending         |
|                  | authority, Bank for     | authority, Bank for    |
|                  | Cooperatives, and       | Cooperatives, and      |
|                  | Savings and Loan        | Savings and Loan       |
|                  | Association.            | Association.           |
+------------------+-------------------------+------------------------+
| **APPRAISALS**   | **Real estate**:        | Specialized appraisers |
|                  | Prepared by State       | required.              |
|                  | Certified General       |                        |
|                  | Appraiser.              | Loans of \$600,000 or  |
|                  |                         | more require a         |
|                  | \* In compliance with   | complete               |
|                  | Financial Institutions  | self-contained         |
|                  | Reform, Recovery, and   | appraisal.             |
|                  | Enforcement Act         |                        |
|                  | (FIRREA) of 1989 and    | Transaction Screen     |
|                  | Standards 1 and 2 of    | Questionnaire for any  |
|                  | the Uniform Standards   | undeveloped sites and  |
|                  | of Professional         | a Phase I for existing |
|                  | Appraisal Practices     | business sites.        |
|                  | (USPAP)                 |                        |
|                  |                         | Loans less than        |
|                  | \* Less than one (1)    | \$600,000 same         |
|                  | year old.               | requirements as B&I.   |
|                  |                         |                        |
|                  | \* Identify the lender  |                        |
|                  | and USDA Rural          |                        |
|                  |                         |                        |
|                  | Development as the      |                        |
|                  | intended users.         |                        |
|                  |                         |                        |
|                  | Copy of environmental   |                        |
|                  | site assessment         |                        |
|                  |                         |                        |
|                  | (Phase I or Phase II)   |                        |
|                  | *(if applicable)*       |                        |
|                  |                         |                        |
|                  | **Chattels**: In        |                        |
|                  | accordance with normal  |                        |
|                  | banking practices and   |                        |
|                  | generally accepted      |                        |
|                  | methods of determining  |                        |
|                  | value.                  |                        |
+------------------+-------------------------+------------------------+
| **ISSUANCE OF    | Commercially available  | All planned property   |
| LOAN NOTE        | energy projects that    | acquisitions and       |
| GUARANTEE**      | produce biomass fuel or | development have been  |
|                  | biogas as an output     | performing at a steady |
|                  | must have completed two | state operating level  |
|                  | operating cycles at     | in accordance with the |
|                  | design performance      | technical              |
|                  | levels submitted to the | requirements, plans,   |
|                  | Agency.                 | and specifications,    |
|                  |                         | conforms with          |
|                  | *(Added 7/26/06, PN     | applicable Federal,    |
|                  | 400)*                   | State, and local       |
|                  |                         | codes, and costs have  |
|                  |                         | not exceeded the       |
|                  |                         | amount approved by the |
|                  |                         | lender and the Agency. |
+------------------+-------------------------+------------------------+