You are here
The DOE Loan Program is required to collect several fees from loan program Applicants. Please find an outline of these fees below. In addition, DOE is supported by outside consultants and legal counsel throughout the loan guarantee process. Applicants are responsible for paying all of the fees and expenses that these consultants and counsel incur while working on the Applicant’s project.
Credit Subsidy Cost
Credit subsidy cost is the estimated long-term amount that a direct loan or loan guarantee will cost the Federal Government. This fee is used to protect the government against the risk of estimated shortfalls in loan repayments. The Department of Energy uses monies appropriated by Congress to pay the credit subsidy costs of Section 1705 and ATVM projects. However, Section 1703 applicants are responsible for paying their own credit subsidy costs.
ATVM Loan Program
Administrative costs for a loan will be 10 basis points of the loan to be paid by the borrower on the closing date of the loan.
Section 1703 and 1705 Loan Guarantee Programs
The application fee must be paid at the time an application is submitted. This fee covers the costs associated with the Department’s financial and technical reviews to determine which projects will be selected for due diligence. The fee varies with each solicitation.
The facility fee covers the Department’s administrative expenses of due diligence, negotiation and documentation. This fee is typically paid in partial conditional commitment, with the balance due upon closing of the Loan Guarantee Agreement. The fee varies with each solicitation.
The maintenance fee is payable to cover the Department’s administrative expenses in servicing and monitoring the Loan Guarantee Agreement during the life of the loan. The fee varies with each solicitation.
Fedwire payments to the Department of Energy
Please provide the following instructions to your Financial Institution for the remittance of Fedwire payments to the Department of Energy: Fedwire instructions 2012