“The goal is to give access to low-cost capital that private lenders cannot or will not provide,” Wayne Killen of the U.S. Department of Energy’s Loan Programs Office told those gathered at the EV Charging Summit & Expo in Las Vegas.
Killen shared a list of questions the department asks those who apply for the loans, known as Title 17. The loans are big – typically for levels at or beyond $100 million.
• Does the project include a key technical innovation that also meaningfully reduces, avoids or sequesters greenhouse gases?
• Is the component and/or software at TRL 8 level of readiness (beyond prototype and demonstration samples or ready for commercial scale)?
• Is the facility or deployment location near complete and are contractors and engineers preparing for project plans?
• Are all key suppliers identified with contracts under way?
• Is there strong evidence of product sales?
• Will cash or equity be available to complement the loan at closing?
• Is a viable financial plan in place that shows a clear path to cash flow positivity – and a reasonable prospect of loan repayment?
• Is the executive team in place and is there sufficient experience and staff to develop, launch and manage the project?
The length of the loans is typically between five and 10 years and the debt-to-equity ratio often 50 per cent to 70 per cent, Killen said.
