---
kind: "section"
citation: "7 C.F.R. § 1710.409"
title: "7"
number: "1710.409"
heading: "Loan provisions."
url: "https://uscodex.org/cfr/7/1710.409"
---

# §1710.409. Loan provisions.

- (a) **Loan term.** The maximum term for loans under this subpart shall be 15 years unless the loans relate to ground source loop investments or technology on an aggregate basis that has a useful life greater than 15 years. Ground source loop investments as the term is used in this paragraph do not include ancillary equipment related to ground source heat pump systems.
- (b) **Loan feasibility.** Loan feasibility must be demonstrated for all loans made under this subpart. Loans made under this subpart shall be secured.
- (c) **Reimbursement for completed projects.**
  - (1) A borrower may request an initial advance not to exceed five percent of the total loan amount for working capital purposes to implement an eligible EE Program;
  - (2) Except for the initial advance provided for in [paragraph (c)(1)](#c-1) of this section, all advances under this subpart shall be used for reimbursement of expenditures relating to a completed activity or investment; and
  - (3) Advances shall be in accordance with RUS procedures.
- (d) **Loan amounts.**
  - (1) Cumulative loan amounts outstanding under this subpart will be determined by the Assistant Administrator of the Electric Program and based an applicant's business plan; and
  - (2) Financing for administrative costs may not exceed 5 percent of the total loan amount.
  - (3) The Rural Utilities Service reserves the right to place a cap on both the total amount of funds an eligible entity can apply for, as well as a cap on the total amount of funds the Energy Efficiency and Conservation Program can utilize in the appropriations.

## Notes

### Source

Source: 78 FR 73366, Dec. 5, 2013, unless otherwise noted.

### Authority

Authority: 7 U.S.C. 901 et seq., 1921 et seq., and 6941 et seq.

### Source

Source: 57 FR 1053, Jan. 9, 1992, unless otherwise noted.