Small Business Financing Program

Description

NYSERDA’s Small Business Financing program offers small businesses, including multifamily building owners and not-for-profit organizations, two loan options for financing energy efficiency and renewable energy projects: Participation Loan Financing and On-Bill Recovery Financing.

Eligibility

Small businesses with 100 employees or less and not-for-profit organizations that own, lease or manage their building or lease space within a building and have a release from the building owner to apply for financing through the program are eligible.

Affordable multifamily building owners or managers with a release from the building owner can apply for financing for energy efficiency projects through the program. However, to access financing, they must participate in the Multifamily Performance Program.

Eligible projects:

• Energy Efficiency Upgrades. The estimated amount of money a customer can expect to save on energy as the result of implementing the energy efficiency project must be sufficient to pay off the upfront cost of implementing the project within 15 years or less to qualify for Participation Loan financing, or within 10 years or less to qualify for the On-Bill Recovery Loan.
• Renewable Energy Systems (PV Systems and Air Source or Ground Source Heat Pumps). After accounting for all incentives, as well as federal and state tax credits, the system must have a pay-back period of 15 years or less to qualify for Participation Loan Financing, or within 10 years or less to qualify for the On-Bill Recovery Loan.

How the Program Works

Participation Loan. NYSERDA partners with a lender of the borrower’s choice on a loan in which NYSERDA finances 50% of the loan principal, up to $50,000, at 0% interest and the lender finances the remaining loan principle at market rate. The lender issues the loan to the borrow and the borrower makes monthly loan payments to the lender. The lender then pays NYSERDA back.

On-Bill Recovery Loan. The Borrower works with Barret Capital Corporation to secure a NYSERDA loan of up to $50,000 at 0% interest. The borrower repays NYSERDA through a charge on their monthly utility bill.

How to Apply

To apply for financing for energy efficiency improvements, eligible businesses must first obtain qualified energy assessments through the NYSERDA FlexTech program, available utility programs, or from qualified energy consultants. All energy assessments must meet NYSERDA’s qualified energy assessment standards. Additionally, before applying for upgrades, small businesses will need to decide which assessment recommendation to implement, identify any available utility incentives and get contractor quotes for performing the work. Subsequently, borrowers must complete and submit to NYSERDA a Request for Financing Package which includes a Request for Financing Form, an  Approved Energy Efficiency Measures Worksheet , and a copy of the qualified energy assessment. If eligible, NYSERDA will approve the Request for Financing Package.

To apply for financing for the purchase and installation of solar, eligible businesses will need to select a solar contractor to review the site and to provide an estimate of the project costs as well as any available incentives. The solar contractor will then need to submit a Project Application to NYSERDA. NYSERDA will issue an eligibility letter indicating which program the borrower is eligible for.

To apply for financing for the purchase and installation of an air source or ground source heat pump, borrows will need to select a heat pump contractor to review the project and to provide applicable costs and any available incentives. Borrowers will also need to apply to their utility’s clean heat program for available utility incentives. The contractor will then submit to NYSERDA the NY Clean Heat application provided to the utility and a proforma showing project costs and payback. NYSERDA will issue an eligibility letter indicating which program the borrower is eligible for.

Participation Loan

After approval from NYSERDA, borrowers may submit their NYSERDA- approved Request for Financing Package or NYSERDA-issued eligibility letter, as applicable, to a participating lender of their choice. The lender will decide whether or not to issue a Participation Loan to an organization based on the lender’s underwriting criteria. The lender will then submit a Project Participation Agreement indicating the loan terms it has determined for the borrower, and submit it to NYSERDA for approval.

On-Bill Recovery Loan

After approval from NYSERDA, Borrowers may submit their NYSERDA- approved Request for Financing Package or NYSERDA-issued eligibility letter, as applicable, to bkorn@barrettcapital.com at Barrett Capital Corporation, or call Barrett Capital Corporation at 212.434.3000.

Barrett Capital Corporation will evaluate whether or not to issue a NYSERDA On Bill Recovery Loan to a borrower based on NYSERDA’s underwriting criteria. Criteria include but are not limited to:

• Organization in existence at least two years.
• Credit score of 650 or higher.
• No bankruptcies within the last 5 years.
• No current judgments or liens in excess of $5,000
• Debt service coverage ratio > 1.2

Please visit NYSERDA’s Small Business Financing webpage for more information on available financing options.

Contact Information

Questions about the program may be directed to 1-866-NYSERDA or by email to gjgnysbnfp@nyserda.org.