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WASHINGTON, May 17, 2004—Agriculture Secretary
Ann M. Veneman today announced a new loan guarantee pilot project aimed
at developing renewable energy systems from the use of livestock as a raw
material.
“This program will provide guaranteed loans for
rural small businesses to develop the means to effectively destroy these
specified risk materials from cattle while providing a bio-based source
of energy,” Veneman said.
In January, USDA expanded the list of specified risk
materials prohibited in the food supply as an additional firewall to bovine
spongiform encephalopathy (BSE). In addition, the Food and Drug Administration
announced that it intends to prohibit specified risk materials in food
regulation by the agency.
The maximum amount of total loan guarantees under the
pilot program will be $50 million. USDA anticipates up to three awards
will be made. There is no dollar restriction associated with any one award
provided the amount requested is within the $50 million allotted. The
amount of the loan guarantee cannot exceed 50 percent of the total project
cost.
Applicants must submit their application and one copy
to the USDA State Rural Development Office where the proposed project
is located or where the borrower is headquartered. The notice of funding
availability appears in the May 18 Federal Register. All applications
must be received by August 16.
USDA Rural Development's mission is to
deliver programs in a way that will support increasing economic opportunity
and improve the quality of life of rural residents. As a venture capital
entity, Rural Development provides equity and technical assistance to
finance and foster growth in homeownership, business development, and
critical community and technology infrastructure. Further information
on rural programs is available at a local USDA Rural Development office
or by visiting USDA's web site at www.rurdev.usda.gov.
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