Energy Resources Group has a long history of securing money for our institutional and educational clients from the Missouri State Energy Loan Program, and we are proud to have overseen the project with the highest State loan amount ever awarded. Each award cycle, we make an effort to reach out to our clients and encourage them to take advantage of this source of low-interest money. This, combined with utility incentive money, relieves many issues of finding the capital needed. In addition, the loan is considered off balance sheet financing and should not impact borrowing capacity.

The Missouri Department of Economic Development’s State Revolving FY2020 Energy Loan Program Announcement can be seen at the following link: https://energy.mo.gov/energy/communities/assistance-programs/energy-loan-program.  The following are loan program highlights:

1. Application deadline for the current cycle is September 20, 2019.
2. Loan interest rate is 2.75% annually.
3. There is a one-time 1% fee for setting the loan up and its administration.
4. Minimum loan is $10,000 and maximum is $500,000.
5. Qualifying projects will likely receive 100% financing, eliminating a capital expenditure request.
6. These loans are effectively secured by the energy savings, so they are considered off balance sheet.
7. Loan term is typically 10 years or less.
8. Projects with faster paybacks receive higher priority in the selection process.
9. Successful projects will be approved in late 2019.
10. Implementation time frame is typically 18 months.

Utility Incentives

Both Ameren and Spire have aggressive programs that will reimburse a substantial part of the costs.  A recent RCx project ERG completed was 100% reimbursed – for both the study and the implementation – by the incentives from Ameren.

Together

Together, the State Loan Program and the Utility Energy Programs make it very cost effective to implement energy efficiency solutions for buildings.  For instance, a ten-year loan on a 7.0-year payback produces an instant cashflow positive scenario.  The energy savings cover more than the needed principal and interest payments.

Additional benefits typically include:

1. Improved occupant comfort;
2. Increased equipment life; and,
3. Lower maintenance costs.

Energy Resources Group, Inc.  (ERG) is a qualified Trade Ally in both the Ameren and Spire programs.  ERG is willing to work with clients to submit State Loan Applications on their behalf with the expectation that this upfront work can be compensated once a loan is approved. We will only be able to work with a limited number of clients during this loan cycle, so please get in touch soon so as not to push the deadline.