Department of Energy Makes it Easier to Access Low-Interest Financing

01 May 2014 Dashboard Insights Blog

The U.S. Department of Energy is overhauling a $16 billion low-interest financing program to fund new technologies such as efficient engines, lightweight materials, and low-friction tires. This program, titled the Advanced Technology Vehicles Manufacturing Loan Program, is being modified to further help suppliers access low-interest loans. In a recent announcement, Energy Secretary Ernest Moniz said that the ATVM program presented “an opportunity to hit the accelerator on U.S. auto manufacturing growth.”

Since the creation of the ATVM program, the Department of Energy has provided about $8.4 billion in low-interest financing to OEMs such as Ford, Nissan, Tesla Motors and Fisker Automotive. While suppliers were always eligible to receive similar low-interest loans under the program, none actually took advantage of the program. Under the updated program, suppliers will find it easier to access these low-interest loans to fund production of new, more efficient technologies.

To qualify for a low-interest loan, a supplier must contribute to vehicles that are 25 percent more efficient than their 2005 equivalent vehicle counterpart. However, a company may still be granted access to this low-interest financing if a component is, from time to time, used in vehicles that don’t meet the efficiency improvement standard. Recent changes to the ATVM program, such as legal clarifications regarding supplier access and the creation of an online application portal, are all aimed to facilitate easier access to the low-interest loans.

The Department of Energy’s Loan Programs Office has said that it has been actively promoting the new program to suppliers in the hopes of providing assistance in meeting the challenges of next generation technologies. 

This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary. The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites. In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.

Related Services