Energy Office Initiates Loan Program

November 1997

With the Budget and Control Board's approval in September, the Energy Office is now able to offer two loan programs for energy projects. ConserFund finances energy efficiency improvements at public and non-profit facilities. EnerFund assists businesses with both facility improvements and recycling projects.

Offering loans ranging from $25,000 to $200,000, the ConserFund supports Energy Bank Partnership efforts to help state agencies, local governments, school districts, and non-profit organizations make facility improvements that reduce energy costs. ConserFund borrowers may arrange loan terms to match the payback period of a project up to ten years. Interest rates vary with the term of the loan and are below market.

ConserFund expands the project financing options for public agencies. The SC Energy Office will continue to assist state agencies to finance energy projects through the State Treasurer's Office Installment Purchase and Master Lease Purchase Programs. The Energy Office also works with school districts and local governments to obtain third-party lease purchase financing for energy equipment.

EnerFund, a business loan program, provides highly secured, low interest loans for energy conservation measures at commercial and industrial facilities (EnerFund A) and for recycling market development projects (EnerFund B). Loans range from $100,000 to $500,000, with terms to ten years (EnerFund A) and 15 years (EnerFund B). While interest rates vary with loan maturity, all rates are considered below market. Both ConserFund and EnerFund loans are made from Petroleum Violation Escrow funds authorized by the U.S. Department of Energy under the State Energy Program. Federal guidelines require that each financed project meet energy efficiency criteria. The SC Energy Office conducts both technical and credit reviews of loan applications.