The Energy Efficiency Revolving Loan (EERL) program was established through the US Department of Energy/South Carolina Office of Regulatory Staff (ORS) Energy Office using "stimulus" funding. It is administered by the Business Development Corporation (BDC).
The purpose of the loan fund is to enable business and industry to save money by saving energy. The fund is also open to other entities including utilities and government agencies.
The primary target of this program is business and industry, although utilities, non-profits and government entities could be eligible under certain circumstances.
The interest rate is determined on a transaction by transaction basis.
Rates may be fixed or floating. The fixed rate transitions will be fixed for the life of the loan and the floating rate loans are tied to prime and will adjust monthly as prime changes.
The preferred minimum loan amount is $50,000 and the maximum is generally $1 million, however exceptions may be made.
Loans should not extend beyond one and one-half times the expected payback of the loan. In other words, if your planned activity is expected to pay for itself in 4 years, your loan would be for no more than 6 years. Loan periods can be shorter. The maximum term is 10 years.
Collateral will generally be required in some form.
Loans are evaluated in two ways: financial stability of the borrower and technical merit of the proposed energy measure(s). BDC and our banking partners when applicable will evaluate finances and the Office of Regulatory Staff (ORS) Energy Office will confirm that the proposed project meets DOE guidelines.
Once the loan is approved, and the loan documents are signed by you (the borrower) and BDC (the lender) you may begin work. As work is completed and contractors submit invoices to you, you may request progress payments based on work completed and invoices received.
Borrowers may have an interest only payment period while their energy project is completed. Once the project(s) is complete, payments of principal and interest will replace the interest only payments.