USDA Notice of Funding Opportunity for the Timber Production Expansion Guaranteed Loan Program

FUNDING PROGRAM: USDA Notice of Funding Opportunity for the Timber Production Expansion Guaranteed Loan Program.

FUNDING OPPORTUNITY NUMBER: RBS–24–BUSINESS–0008.

FUNDING AGENCIES: USDA Rural Business-Cooperative Service (RBCS).

OPPORTUNITY:

The Rural Business-Cooperative Service (RBCS or Agency), a Rural Development (RD) agency of the United States Department of Agriculture (USDA), announces the acceptance of applications and availability of funding under the Timber Production Expansion Guaranteed Loan Program (TPEP) for fiscal year (FY) 2024.

DESCRIPTION:

The TPEP will provide financial assistance through loan guarantees to eligible lenders providing loans to entities seeking to establish, reopen, retrofit, expand, or improve a sawmill or other wood processing facility in close proximity to a unit of United States Forest Service (USFS) National Forest System lands, including Indian forest land or rangeland, that has been identified as high or very high priority for ecological restoration if the presence of a sawmill or other wood-processing facility would substantially decrease or does substantially decrease the cost of conducting ecological restoration projects involving vegetation removal on the unit of land. These units of USFS National Forest System lands must be classified as being a high or very high priority for ecological restoration involving vegetation removal, due to the risk of unnaturally severe wildfires, or insect or disease infestation.

ELIGIBLE APPLICANTS: 

A borrower entity engaged in or proposing to engage in establishing, reopening, retrofitting, expanding, or improving a sawmill or other wood-processing facility. For purposes of this notice, an eligible borrower entity may include a forest worker, logger, heavy equipment operator, material handler, or other professional entity responsible for purchasing and processing ecosystem restoration byproducts. Eligible borrower entities must use ecosystem restoration byproducts from Federal or Tribal lands that USFS identified as high or very high priority for ecological restoration involving vegetation removal and must procure a significant amount of raw materials from Federal or Tribal lands.

The percentage of guarantee will be 90 percent for an eligible lender.

COST SHARING: There are no cost sharing or matching requirements associated with this guarantee.

FUNDING AVAILABLE:

• FUNDING AVAILABILITY: This program will have more than $200 million available beginning in FY 2025.
• INDIVIDUAL AWARD AMOUNTS: Maximum loan amount is $25 million and there is no minimum loan amount.

APPLICATION WINDOW:

Completed applications may be submitted beginning December 26, 2024. Applications will be accepted until funds are exhausted.