New $50 Million Energy Efficiency Loan Program Created to Help Tennessee Business Reduce Costs

9/1/2010

 

State and Federal Governments to Work with Private Lenders, TVA to Help Companies Save Money, Increase Competitiveness

 

Governor Phil Bredesen and Commissioner Matt Kisber, Tennessee Department of Economic and Community Development, announced recently the launch of a new $50 million Energy Efficiency Loan Program to help Tennessee companies finance investments in energy efficient technology, energy retrofits and renewable energy systems. This innovative economic development program will be administered by Pathway Lending and will offer access to below-market rate loans, financing up to 100 percent of improvements aimed at reducing energy consumption, lowering overall costs and improving profitability. 

“Our goal is to make Tennessee a true leader in sustainability and this new Energy Efficiency Loan Program will be a substantial step in that direction,” said Governor Bredesen. “By providing access to this type of financing, we are making Tennessee businesses more competitive and that means more jobs for Tennesseans.” 

Pathway Lending plans to offer below-market rate loans at 5 percent with terms extending to 10 years.  Loans can finance up to 100 percent of costs on projects including building retrofits, equipment replacements or upgrades, lighting and renewable generation projects.  The loans can be repaid with the energy costs savings derived from each project. The program is the result of a collaborative effort between the state of Tennessee, the U.S. Department of Energy, the U.S. Economic Development Administration, Pathway Lending, Pinnacle Financial Partners and the Tennessee Valley Authority. 

“Controlling energy costs is a key business strategy for all Tennessee companies,” said Commissioner Kisber. “Helping those companies operate ‘leaner’ and ‘greener’ may help some businesses considering these types of investments to move forward.” 

The Energy Efficiency Loan Program is available to any business seeking to reduce energy consumption in their Tennessee facilities through building retrofits and upgrades, equipment replacement purchases or other energy efficiency or renewable energy projects.  Beginning August 25, businesses may apply online at www.pathwaylending.org with first round applications due by November 1, 2010. 

To be eligible for a loan, a business must have a complete an energy audit, assessment or vendor proposal with detailed project energy savings.  Once verified, these energy savings determine the amount and term of the loan and the applicant’s ability to repay the loan with those savings.  

Free informational workshops will be hosted by Pathway Lending staff throughout the state in September.  Any business interested in applying for a loan is welcome to attend. A schedule of these events is available at www.pathwaylending.org

To learn more about the Energy Efficiency Loan Program, please visit www.pathwaylending.org or call (615) 425-7171.

Back to News Listing