Biobased Markets and Development Access Grant Program

The Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Program, administered by the U.S. Department of Agriculture (USDA) Rural Development division, is a federal loan guarantee initiative designed to support the development and deployment of advanced technologies in the bioproducts sector. Its primary objective is to accelerate investment in commercial-scale biorefineries, renewable chemical production, and biobased product manufacturing. This initiative is part of USDA’s broader mission to enhance economic opportunities in rural America by encouraging innovation and sustainability in the bioeconomy. This program provides loan guarantees of up to $250 million for the construction, development, and retrofitting of facilities utilizing emerging biobased technologies. Projects must involve advanced biofuels, renewable chemicals, or other biobased products derived from biological feedstocks. Eligible uses of funds include development, construction, and retrofitting of biorefineries and manufacturing facilities that employ new, commercial-scale processing technologies. In certain cases, refinancing may also be eligible. Importantly, the federal participation, including loan guarantees and any other federal support, must not exceed 80% of the project’s total eligible costs. Applicants must meet stringent eligibility criteria. Lenders must be well-capitalized institutions, including federal or state-chartered banks, credit unions, Farm Credit System institutions, cooperatives, or federally-recognized tribes. Loan guarantees may be requested on behalf of a diverse array of borrowers such as individuals, corporations, local and state governments, educational institutions, agricultural cooperatives, and public power entities. Projects must be physically located within the United States or its territories, and applicants are expected to make a significant cash equity contribution. The application process is divided into two phases. First, the applicant or lender must submit a Letter of Intent (LOI) to apply at least 30 days prior to the application deadline. Then, a Phase 1 application is required, demonstrating borrower and project eligibility, feasibility, and scoring criteria. Based on this, select applicants are invited to submit Phase 2 applications, which involve environmental and technical reports, financial modeling, and a credit evaluation. Applications are accepted year-round; however, funding decisions are made biannually. For the upcoming October 2026 cycle, the LOI is due by September 1, 2026, and the Phase 1 application is due by October 1, 2026, at 11:59 p.m. ET. The program is recurring, with deadlines in April and October of each year. Complete applications received by April 1 are considered for funding in the same fiscal year. If a submission date falls on a weekend or holiday, the deadline is extended to the next federal business day. Applicants are strongly encouraged to contact USDA via [email protected] before initiating their applications. This pre-engagement is advised to ensure a complete and efficient application process and is detailed further in the Application Guide. Key contacts for the program include James Campbell ([email protected]) and Chris Cassidy ([email protected]), both located at USDA Rural Development's Programs Processing Division. The statutory authority for the program is rooted in 7 U.S.C. 8103 and codified through 7 CFR 4279, Subpart C, and 7 CFR 4287, Subpart D. The program was continued under the Agricultural Act of 2014. This program demonstrates USDA's commitment to fostering sustainable technologies in rural economies and offers robust financial backing for viable biobased innovation.