Description

Under the Clean Energy Solutions Energy Efficiency Revolving Loan Fund (EERLF), the New Jersey Economic Development Authority (EDA) offers loans to commercial, institutional, and industrial entities to finance improvements that receive support under the New Jersey Office of Clean Energy (OCE) Pay for Performance energy efficiency incentive program, the Large Energy Users Pilot Program, and Small CHP and Fuel Cells Incentive Program. These programs collectively offer a wide variety of incentives for energy efficiency and CHP in commercial, industrial and institutional buildings. Projects should create or maintain jobs in New Jersey. Loan amounts range from $250,000 to $2.5 million, limited to 80% of the cost of the project. The collective incentives received by a participant, which includes incentives through other programs, may not exceed 100% of the cost of the project. Interest rates under the program vary from 2% – 4% according to the amortization period of the loan (3, 5, or, 7 years).

In order to qualify for a loan under this program, applicants must first be accepted into the respective incentive program. For instance, Pay for Performance participants must receive an approved Energy Reduction Plan prior to submitting a loan application. It is important to note that while multi-family housing projects are eligible for incentives under the Pay for Performance program, they are not eligible for loans from the EERLF. Both new construction and existing buildings are eligible for loans from the EERLF. Eligibility is likewise limited to customers that pay the Societal Benefits Charge (SBC), which funds the incentive programs and the EERLF. The loan program itself also has additional requirements, such as a minimum (1.1:1) debt service coverage ratio and personal guarantees from entities with more than 10% ownership in a project.

For further information on the eligibility requirements for the linked incentive programs and the EERLF, please see the EDA loan program web site listed above.