Together, America Prospers

Biorefinery, Renewable Chemical, and Biobased 

Product Manufacturing Assistance Program

What does this 

program do? 

The Biorefinery, Renewable 

Chemical, and Biobased Product 

Manufacturing Assistance 

Program (BAP), also known 

as the Section 9003 Program, 

provides loan guarantees to 

assist in the development of 

advanced biofuels, renewable 

chemicals, and biobased products 

manufacturing facilities.

Biorefineries

Biorefineries convert renewable biomass 

into advanced biofuels, renewable 

chemicals, and biobased products.

• Advanced Biofuels: Produced 

from renewable biomass (other 

than corn kernel starch). Advanced 

biofuels are produced in a variety of 

biorefineries using a variety 

of feedstocks.

Examples include biofuels derived 

from cellulose and waste materials, 

crops and crop residue, oil seeds 

and animal fat, diesel-equivalent 

fuel, biogas, and butanol.

• Renewable Chemicals: A monomer, 

polymer, plastic, formulated product 

or chemical substance produced 

from renewable biomass. Renewable 

chemicals can be produced in a 

variety of biorefineries.

Examples include but are not limited 

to succinic acid, pentanes and 

pentenes, organic acids, furfural, 

sorbitol, and acetone.

• Biobased Products: Produced 

from renewable biomass, biobased 

products are commercial or 

industrial products other than food 

or feed.

Eligible projects include the 

development, construction, or retrofitting 

of commercial-scale biorefineries using 

eligible technologies. The biorefinery 

must produce advance biofuel and may:

1. Sell the advanced biofuel that it 

produces as a biofuel, renewable 

chemical, or for other non-fuel usage

2. Process the advanced biofuel 

into renewable chemicals or other 

biobased products or

3. Use the biofuel as a fuel for heat 

or power in its processes or to 

generate electricity.

Biobased Product Manufacturing

Biobased product manufacturing 

facilities manufacture renewable 

chemicals and other biobased 

outputs from biorefineries into 

end-user products.

Examples of end-user products include 

fertilizers, pharmaceuticals, pesticides, 

plastics, lubricants, and oils.

The facility may be a stand-alone 

manufacturing facility or it may be 

part of a biorefinery. The feedstock or 

inputs into the manufacturing facility are 

outputs from a biorefinery (not required 

to be an advanced biofuel biorefinery.)

Eligible projects include the 

development, construction, and 

retrofitting of technologically new 

commercial-scale processing and 

manufacturing equipment and 

required facilities that will be used 

to convert renewable chemicals and 

other biobased outputs into end-user 

products on a commercial scale.
Biorefinery, Renewable Chemical, and Biobased 

Product Manufacturing Assistance Program

Lender Eligibility Requirements

• An eligible lender is any Federal or 

State-chartered bank, Farm Credit 

Bank, other Farm Credit System 

institution with direct lending 

authority, or Bank for Cooperatives.

• The Lender must demonstrate 

that it meets the FDIC definition 

of Well Capitalized at the time of 

application.

Project Funding and 

Guaranteed Loans

• This program provides loan 

guarantees for up to 80% of the 

total eligible project costs up to 

$250 million.

• The maximum total Federal 

participation (9003 program 

guaranteed loan plus all other 

Federal loans or grants) is 80% of 

the total eligible project cost.

• The borrower and other principals 

involved in the project must make a 

significant cash equity contribution 

investment in the project.

Application Process 

The Section 9003 Program uses a 

2-phase application process.

• There are two application cycles 

each fiscal year. Applications may 

be submitted at any time.

• Letter of Intent deadlines are 

September 1 and March 2.

• Application deadlines are 

October 1 and April 1.

• Applications will be evaluated for 

eligibility, technical and financial 

feasibility, and sufficient project 

equity. Applicants with the highest 

priority scoring may be invited to 

submit Phase 2 applications.

• Applications with lower priority 

scores not invited to Phase 2 will be 

carried forward and compete for one 

additional review cycle.

Phase 1 Applications Include:

Project summary, application form, 

financial statements, financial model, 

feasibility study, business plan, priority 

scoring information, intergovernmental 

consultation, and any other information 

determined by the agency to be 

necessary to evaluate the application.

Phase 2 Applications Include:

Technical assessment/technical 

report, environmental assessment, 

lender’s analysis/credit evaluation/

supporting materials, appraisals, 

lender’s proposed loan agreement, 

estimated timing of loan closing, 

credit rating, updates to application 

materials as appropriate, and other 

information determined by the agency 

to be necessary to evaluate the 

application including any contracts 

and agreements.

Learn More About the Section 9003 

Program at:

rd.usda.gov/programs-services/

biorefinery-assistance-program

EnergyPrograms@rd.usda.gov, 

or 202-720-0410

NOTE: Because citations and other information may be subject to change, 

please always consult the program instructions listed in the section above 

titled “What Governs This Program?” You may also contact your local office for 

assistance. You will find additional forms, resources, and program information at 

rd.usda.gov. USDA is an equal opportunity provider, employer, and lender.

Last Updated January 2020

What governs this program?

• Code of Federal Regulation, 

7 CFR 4279, Subpart C and 

7 CFR 4287, Subpart D, and 

continued in the Agricultural Act of 

2014 (2014 Farm Bill)(Pub. L. 113-79).

• This program is authorized under 

7 U.S.C. 8103.