The Energy Efficiency Revolving Loan (EERL) program was established through the South Carolina Energy Office and is administered by the Business Development Corporation (BDC).
EERL is designed to encourage borrowers to invest in energy efficient upgrades that reduce electric consumption. Maximum loan terms up to 10 years.
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.
No
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.
Opening a new small business and navigating the necessary steps can be challenging. BDC was instrumental in helping me develop a financing strategy that made the dream a reality. The team I worked with was outstanding and helped me from start to finish.
