USDA is seeking applications for funding to help support the development of advanced biofuels, renewable chemicals and biobased products.

"The bioeconomy is a catalyst for economic development in rural America, creating new jobs and providing new markets for farmers and ranchers," Agriculture Secretary Tom Vilsack said. "Investing in the businesses and technologies that support the production of biofuels and biobased products is not only good for farm incomes. The whole economy benefits from a more balanced, diversified and consumer-friendly energy portfolio, less dependence on foreign oil and reduced carbon emissions."

Funding is being provided through the Biorefinery, Renewable Chemical and Biobased Product Manufacturing Assistance Program, formerly known as the Biorefinery Assistance Program. (Photo: moodboard/Thinkstock)

Funding is being provided through the Biorefinery, Renewable Chemical and Biobased Product Manufacturing Assistance Program, formerly known as the Biorefinery Assistance Program. The program provides loan guarantees of up to $250 million to develop, construct and retrofit commercial-scale biorefineries and to develop renewable chemicals and biobased product manufacturing facilities.

USDA has provided $844 million in loan commitments to 10 businesses in the Biorefinery, Renewable Chemical and Biobased Product Manufacturing Assistance Program since the start of the Obama administration. Companies receiving these commitments are projected to produce 159 million gallons of advanced biofuels.

A 2015 USDA study of the bioeconomy found that the biobased products industry generates $369 billion and 4 million jobs each year for our economy. Biobased products industries directly employ approximately 1.5 million people, while an additional 2.5 million jobs are supported in other sectors.

For this announcement, USDA will seek applications in two cycles. Applications for the first funding cycle are due October 3, 2016. Applications for the second cycle are due April 3, 2017. For more information, see page 48377 of the July 25, 2016, Federal Register. Application materials can be found on USDA's Rural Development website.

Eligible borrowers include individuals, corporations, federally-recognized tribes, units of state or local government, farm cooperatives and co-op organizations, associations of agricultural producers, national laboratories, institutions of higher education, rural electric cooperatives, public power entities – or a consortium of any of these borrower types. Entities that receive program financing must provide at least 20% of the funding for eligible project costs.

Source: USDA