On December 15, Pathway Lending announced that its flagship Energy Efficiency Loan Program, the largest of its kind in the nation, is now open to local governmental entities. Under this expansion, those seeking to reduce energy consumption and costs can access affordable loan capital needed to make their projects a reality. The program offers up to six years of financing for qualified energy efficiency and renewable energy projects to Tennessee local governmental entities including municipalities, counties, school districts and other similar public agencies. The program will begin accepting applications from local governmental entities on January 4, 2016.
Launched in 2010, the loan program helps Tennessee businesses finance investments in energy efficient technologies, including energy-saving building retrofits and renewable energy systems, which reduce energy consumption and energy costs and avoid release of harmful air pollutants while spurring local job growth. The program, which has originated more than $24 million in loans to date to both for- and non-profit businesses, now welcomes Tennessee local governmental entities to participate on a first come, first serve basis.
The Energy Efficiency Loan Program is a collaborative effort between the State of Tennessee / Tennessee Department of Environment and Conservation (TDEC), the Tennessee Valley Authority (TVA), the U.S. Department of Energy, the U.S. Economic Development Administration and Pathway Lending.
“We strongly believe expanding the reach of the program will provide great benefits to Tennessee communities. This new source of capital gets the ball rolling on projects that have been long delayed due to a lack of funds,” said Clint Gwin, president of Pathway Lending. “I want to thank Governor Haslam and his team along with TVA for supporting this expansion. Their backing will help local governmental entities become leaders in energy efficiency in their communities.”
“TVA is pleased to have supported this expansion of the Energy Efficiency Loan Program to include local governmental entities,” said Cindy Herron, Vice President of EnergyRight® and Renewable Solutions at TVA. “We have long supported increased implementation of energy efficiency in all sectors of the economy and bringing this valuable source of capital to governmental entities will deliver long term impacts to the local power companies and the communities they serve.”
The TDEC Office of Energy Programs works with both the public and private sector to provide real solutions and savings on energy expenses. “Expanding the Energy Efficiency Loan Program provides yet another valuable resource for local governmental entities seeking to implement energy efficiency and renewable energy projects and complements TDEC’s grant and technical assistance offerings,” said Bob Martineau, TDEC Commissioner. “We encourage governmental entities to take advantage of this opportunity through Pathway Lending.”
Through the Energy Efficiency Loan Program, Pathway Lending offers below-market rate loans to finance building retrofits, equipment replacements or upgrades, lighting and renewable generation. Up to 100 percent of project costs may be financed, including design and installation fees. The loans are designed to allow for energy costs savings derived from each project to provide the repayment of the loan.
The program is available to any local governmental entity or business seeking to reduce energy consumption of its Tennessee facilities through energy efficiency-improving projects. To be eligible for a loan, a governmental entity or business must have a complete third-party energy audit, assessment or vendor proposal that details estimated energy savings.
A list of energy auditors can be found at http://www.pathwaylending.org/loans/energy/energy-resources.
To learn more about the Energy Efficiency Loan Program, please visit www.pathwaylending.org or call (615) 425-7171.
About Pathway Lending
Based in Nashville, Pathway Lending is a Community Development Financial Institution (CDFI) as certified by the U.S. Department of the Treasury. Founded in 1999, Pathway Lending provides loans to businesses lacking access to traditional financing options throughout Tennessee. Since its inception, Pathway Lending has made more than 800 loans totaling $150 million to over 500 companies. The Energy Efficiency Loan Program is a $30 million dollar revolving loan program that has helped more than 125 Tennessee save money by reducing their energy consumption. Pathway Lending is headquartered in Nashville. For more information, visit www.pathwaylending.org.
About State of Tennessee Department of Environment and Conservation
With more than 2,900 employees working across the state, the Tennessee Department of Environment and Conservation is a diverse and dynamic department, serving the state by safeguarding the health and safety of Tennessee citizens from environmental hazards; protecting and improving the quality of Tennessee’s land, air and water; and managing Tennessee’s 56 state parks, 85 natural areas and a variety of historical or archaeological sites. For more information about the department, please visit www.tn.gov/environment.
Tennessee Valley Authority
The Tennessee Valley Authority is a corporate agency of the United States that provides electricity for business customers and local power distributors serving more than 9 million people in parts of seven southeastern states. TVA receives no taxpayer funding, deriving virtually all of its revenues from sales of electricity. In addition to operating and investing its revenues in its electric system, TVA provides flood control, navigation and land management for the Tennessee River System and assists local power companies and state and local governments with economic development and job creation. For more information about TVA, please visit www.tva.gov.