March 3, 2020 basel

ADVANCED TECH VEHICLES PRODUCTION LOAN PROGRAM

ADVANCED TECH VEHICLES PRODUCTION LOAN PROGRAM

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LPO has $17.7 billion in loan authority to guide the make of qualified light-duty automobiles and components that are qualifying the Advanced Technology Vehicles Manufacturing Loan Program (ATVM), authorized by the power Independence and safety Act of 2007.

Up to now, this program has loaned $8 billion for jobs which have supported the creation of a lot more than 4 million advanced level technology cars. Read more about LPO’s ATVM profile.

Read our fact that is two-page sheet a summary of exactly exactly exactly how LPO can fund car production tasks.

To learn more:

Exactly exactly What value can bring as a LPO loan provider to my project?

ATVM is regarded as three distinct loan programs administered by LPO, but all provides an equivalent value to borrowers:

  • Use of Debt Capital: Through ATVM, LPO provides use of financial obligation money that is coming in at U.S. Treasury prices for car production tasks in the us.
  • Versatile, Custom Financing: LPO can offer funding that meets the precise requirements of specific borrowers. LPO has knowledge about corporate, structured business, and recourse that is limited finance loans. Furthermore, LPO has ability to fund big jobs as being a single loan provider or to fill gaps in funding as an element of a band of loan providers.
  • Committed Partnership: loan providers frequently choose to build relationships a task if the deal is completely created; but, LPO encourages engagement that is early task development. LPO usually takes the right time for you to plunge deep and understand the task as well as its technology. And after loan closing, LPO continues to be a valuable partner to borrowers for the entire duration of a task.
  • Specialized Experience: LPO maintains an in-house group of economic, technical, appropriate, and ecological professionals which includes expertise with first-of-kind tasks and a number of deal structures. To date, LPO has supplied significantly more than $30 billion with debt funding.

Is my task eligible?

A task must meet most of the following requirements to qualify for an ATVM loan:

  • Manufacture eligible automobiles or elements which can be found in qualified cars. Advanced technology automobiles are understood to be light-duty cars that meet or exceed a 25% enhancement in gas effectiveness beyond a 2005 model 12 months base-line of comparable cars; and/or ultra-efficient cars which achieve a gas efficiency of 75 kilometers per gallon or comparable making use of alternate fuels.
  • Build new facilities; reequip, modernize, or expand current facilities; and/or for engineering integration done in the us linked to the production of eligible automobiles or elements.
  • Be found in the usa. International ownership or sponsorship of this tasks is permissible so long as the task is situated in one of several fifty states, the District of Columbia, or perhaps a U.S. Territory.
  • Supply an acceptable prospect of payment.

In addition, a job candidate must show so it has adequate funds to hold out of the task and it is maybe maybe perhaps not determined by other federal help as described into the relevant federal laws.

Candidates also needs to fulfill all eligibility that is applicable established when you look at the Energy Independence and protection Act of 2007, Interim Final Rule, as amended and corrected, Interpretive Rule, and tech support team Document regarding dedication and calculation means of “substantially similar attributes” beneath the ATVM system.

Eligibility of Electrical and Alternative Fuel Car Charging Infrastructure

The production of infrastructure, including linked hardware and pc software, for alternate car fuels such as for instance electricity, hydrogen, liquefied gas (LNG), compressed propane (CNG), and biofuels, might be qualified underneath the ATVM loan program.

The implementation of these infrastructure can be qualified under LPO’s Title 17 Revolutionary Energy Loan Guarantee Program.

What sort of economic terms can LPO provide?

LPO can offer versatile, custom funding to meet up particular requirements of specific borrowers. LPO provides senior, secured financial obligation and will act as single loan provider, or can co-lend with other finance institutions and offer to bank syndicates versatile financial obligation ability that may be upsized or downsized according to syndication strategy.

LPO has experience with a selection of borrowers deal structures, including business, structured corporate or restricted recourse task financings.

To learn more concerning the type of monetary terms LPO can offer, including prices, terms, and framework, browse the ATVM Lending Reference Guide.

INTEREST

The attention price for ATVM loans could be the U.S. That is applicable Treasury when it comes to term associated with the loan without any credit spread.

What’s the process for acquiring financing?

PRE-APPLICATION CONSULTATION

Possible candidates ought to engage straight with LPO for no-fee, no-commitment consultations to go over their proposed project and discover about LPO’s procedure before formally using. Email atvm@hq. Doe.gov to request a consultation having an LPO employee.

FORMAL APPLICATION PROCESS

The next provides an extensive summary of the application process that is ATVM.

Prospective candidates may relate to Guidance for candidates into the Advanced Technology Vehicles production Loan Program to learn more about planning a credit card applicatoin, and may additionally review all governing documents on the LPO site.

Application Consumption Process

  • LPO evaluates task for fundamental eligibility.
  • LPO evaluates technical, economic, ecological, and legal areas of task for ATVM viability thresholds.
  • LPO invites qualified candidates to initial research.

Initial Due terms that are diligence/Preliminary Conditions

  • LPO further evaluates technical, economic, ecological, and appropriate components of the task.
  • LPO verifies the eligibility associated with vehicle/component, applicant, and task expenses.
  • LPO supplies the applicant with initial stipulations of the proposed ATVM loan.
  • In the event that applicant agrees to your initial conditions and terms, LPO invites the applicant to advanced level homework.

Advanced Homework & Term Sheet Negotiation

  • LPO executes economic, credit, appropriate, ecological, and market homework.
  • LPO typically engages outside advisors (e.g., legal, technical, economic, market, insurance coverage) to help in research and structuring. Outside costs that are advisory borne by the applicant.
  • LPO reviews task conformity with federal ecological laws and regulations.
  • LPO structures the transaction, underwrites and negotiates term sheet utilizing the applicant.
  • LPO presents the task for credit approval to interior venture Review Committee, outside Interagency Review and Credit Review that is internal Board.
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  • LPO and applicant co-sign term sheet.
  • LPO dilemmas Conditional Commitment.

Loan Shutting

  • LPO together with negotiate that is applicant finalize the mortgage contract and task documents.
  • LPO and agree that is applicant last terms.
  • Applicant fulfills conditions precedent to close.
  • Applicant pays fee that is closing to ten foundation points (0.1%) associated with the loan principal.
  • LPO and applicant execute loan guarantee contract.

Do you know the expenses & costs?

APPLICATION charge

There’s absolutely no application cost when it comes to ATVM system.

INDEPENDENT ADVISORS

Each applicant is responsible for paying costs incurred by LPO’s separate advisors in experience of the applicant’s task.

REPAIR cost

The maintenance that is annual covers LPO’s administrative costs, apart from extraordinary costs, in servicing and monitoring the mortgage through re payment in complete. The cost is compensated every year ahead of time, commencing with re payment of the pro-rated very very first payment that is annual the closing date associated with loan.

CLOSING EXPENSES

The Borrower will soon be necessary to spend during the time of the closing of this loan a charge corresponding to 10 foundation points (0.1%) regarding the major quantity of the loan.

Where could I find more information that is detailed the ATVM system?

Candidates should review the Guidance for Candidates towards the ATVM Loan Program (May 2019), plus the Interim Final Rule, as amended and corrected.

Governing Documents: make reference to the ATVM Governing papers web page.

Ecological Compliance: reference the ATVM Environmental Compliance web site.

FAQs: Relate To ATVM FAQ website.

Just how do I use?

Prospective candidates ought to engage straight with LPO for no-fee, no-commitment consultations to start out a discussion concerning the task and about LPO’s procedure before formally using. Email atvm@hq. Doe.gov to request a consultation with an LPO employee.

Besides the Interim Final Rule, prospective candidates should relate to Guidance for candidates towards the Advanced Technology Vehicles production Loan Program for extra guidance just before formally using.