By Lena Babaeva Coradini

Some good news for Tennessee: Governor Bredesen and Matt Kisber, commissioner of the Tennessee Department of Economic and Community Development, announced the launch of a new $50 million energy efficiency loan program created to help Tennessee companies finance investments in energy efficient technology, as well as retrofits and renewable energy systems:

This innovative economic development program will be administered by Pathway Lending and will offer access to below-market rate loans, financing up to 100 percent of improvements aimed at reducing energy consumption, lowering overall costs and improving profitability. . . .

“Pathway Lending plans to offer below-market rate loans at 5 percent with terms extending to 10 years.  Loans can finance up to 100 percent of costs on projects including building retrofits, equipment replacements or upgrades, lighting and renewable generation projects. 

The loans can be repaid with the energy costs savings derived from each project. The program is the result of a collaborative effort between the state of Tennessee, the U.S. Department of Energy, the U.S. Economic Development Administration, Pathway Lending, Pinnacle Financial Partners and the Tennessee Valley Authority. . . .

The Energy Efficiency Loan Program is available to any business seeking to reduce energy consumption in their Tennessee facilities through building retrofits and upgrades, equipment replacement purchases or other energy efficiency or renewable energy projects.  Beginning August 25, businesses may apply online at www.pathwaylending.org with first round applications due by November 1, 2010.

To be eligible for a loan, a business must have a complete an energy audit, assessment or vendor proposal with detailed project energy savings.  Once verified, these energy savings determine the amount and term of the loan and the applicant’s ability to repay the loan with those savings. 

Informational workshops will be hosted by Pathway Lending throughout the state in September and businesses are welcome to attend the events for free.