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USDA Pauses Loan Application Processing for Certain Projects

Date: 01/14/2026
Type: Rollback of IRA

On January 14, 2026, USDA issued a memorandum initiating a 90-day administrative pause on “the acceptance, processing, and awarding of loan note guarantees across Rural Business Cooperative Service (RBCS) programs for projects involving biodigesters and controlled environment agriculture.” During the pause, USDA stated that it would conduct a review of existing loans, including “an assessment of delinquency rates, project performance, operational sustainability and underwriting guidelines to ensure prudent stewardship of federal resources.”

According to a news source, this administrative pause could affect projects that were selected for loans, but did not yet have executed loan agreements, through the Rural Energy for America Program (REAP). REAP is partially funded by IRA section 22002.

Opportunities for Participation and Additional Resources:

https://d12v9rtnomnebu.cloudfront.net/diveimages/Temporary_Administrative_Pause_on_Biodigesters_.pdf

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