Waste Dive
22 January 2026
USDA pauses on-farm digester loan agreements amid high delinquency rate
Why It Matters for ITAD
This signals tightening credit and risk aversion in government-backed waste-to-energy projects, which could foreshadow similar scrutiny or funding shifts in other recycling sectors like ITAD. ITAD professionals should monitor public funding trends for sustainability projects, as increased delinquency may lead to stricter loan terms or reduced subsidies for circular economy initiatives.
The pause is expected to affect projects on the cusp of securing loan note guarantees, which are used to finalize project financing. Agency staff cited elevated delinquency rates on digester loans in a letter.
Key Takeaways
- • Government funding for waste-to-energy projects is facing increased scrutiny due to poor loan performance.
- • High delinquency rates in one sector can lead to broader funding pauses or stricter lending criteria across related industries.
- • ITAD businesses should diversify funding sources and prepare for potential shifts in public financial support for sustainability initiatives.
