In the Headlines
March 31, 2023

Energy Dept. Poised to Unleash a Gusher of Loans

Law 360

Energy attorney Taite McDonald was quoted in a Law 360 article about how the U.S. Department of Energy's Loan Programs Office (LPO) will use funding from the Inflation Reduction Act to tackle climate change. Attorneys agree that early work and agency outreach will be crucial for companies if they hope to secure loans for their projects. Ms. McDonald explained that companies will need to secure a certain amount of financing up front before the LPO will award them loans.

"The government is going to come in and cover that outstanding risk, that's what the program is intended for," said Ms. McDonald. "But you have to get to 90%-95%, and those are the projects that will get the money."

And while companies can get frustrated with the length of the application process, patience and a willingness to compromise with the loan office are key, Ms. McDonald explained.

"A lot of times a company will want to fight six issues, and I'm like, 'You've got to pick two, they're not going to budge on all six things you want. Pick two and get it done,'" she added. "But you can't just do everything they want, otherwise it's not a good deal. It's a push and pull."

READ: Energy Dept. Poised to Unleash a Gusher of Loans (Subscription required)

Related News and Headlines