NASHVILLE, TN--(Marketwire - April 5, 2011) - Pathway Lending announced today it is expanding its Energy Efficiency Loan Program to provide access to financing for larger energy saving projects for Tennessee companies. The $50 million program was launched in August 2010 to help Tennessee companies finance investments in energy efficiency technology, energy retrofits and renewable energy systems, which reduce energy costs, operating expenses and greenhouse gases while spurring job growth.
During the initial 90-day application round, Pathway Lending received more than $25 million in applications, which limited financing to $1 million per borrower. Now, the program is open to qualified applicants for up to $5 million on a first come, first serve basis.
"Based on feedback from the market, we learned that companies and manufacturers have larger bundles of energy efficiency projects than the $1 million Program cap allowed," said Clint Gwin, president of Pathway Lending. "We are increasing the program size to help companies achieve larger energy savings and expect to see loan requests ranging from $2 to $4 million dollars."
The Energy Efficiency Loan Program is a collaborative effort between the state of Tennessee, the Tennessee Valley Authority, Pinnacle Financial Partners, the U.S. Department of Energy, the U.S. Economic Development Administration and Pathway Lending.
According to the Southeast Energy Efficiency Alliance (SEEA), another organization focused on positioning energy efficiency as a viable tool for strengthening the regional economy, the expansion of the program will benefit many of Tennessee's industrial businesses. SEEA's Industrial Coalition brings together regional manufacturers, utilities, state energy offices, the Oak Ridge National Lab and programs of the U.S. Department of Energy with the goal of helping manufacturers achieve a higher degree of energy efficiency.
"A wealth of energy efficiency knowledge exists among the manufacturers in the Southeast and the SEEA Industrial Coalition provides a platform for the firms to network with one another, share best practices and exchange ideas about successful energy management projects," said Rick Marsh, Industrial Program Manager for SEEA. "Additionally, the Coalition has created a conduit for manufacturers to express hurdles and needs related to energy efficiency to organizations that can help. This feedback has directly resulted in the development of resources such as Pathway Lending's expanded revolving loan fund which will drive energy efficiency improvements and strengthen the manufacturing sector."
Through the Energy Efficiency Loan Program, Pathway Lending offers below-market rate loans with terms extending up 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. The loans are designed to be repaid with the energy costs savings derived from each project.
The program is available to any business seeking to reduce energy consumption of its Tennessee facilities through efficiency-improving projects. To be eligible for a loan, a business must have a complete third-party energy audit, assessment or vendor proposal with detailed project energy savings. These energy savings determine the amount and term of the loan and the applicant's ability to repay the loan with those projected savings.
To learn more about the Energy Efficiency Loan Program, please visit www.pathwaylending.org or call (615) 425-7171.
About Pathway Lending
Based in Nashville, Pathway Lending is a Community Development Financial Institution (CDFI) as certified by the U.S. Department of the Treasury. Founded in 1999, Pathway Lending provides loans to businesses lacking access to traditional financing options throughout Tennessee. In the ten years since its inception, Pathway Lending has made more than 450 loans to over 325 companies totaling more than $50 million. Pathway Lending loans have facilitated the creation of more than 1,500 new full-time jobs with average wages of $15.48 per hour while maintaining or retaining more than 3,200 jobs. Pathway Lending is headquartered in Nashville and currently has offices in Knoxville, Tri-Cities, and Jackson. For more information, visit www.pathwaylending.org.
About SEEA
Based in Atlanta, the Southeast Energy Efficiency Alliance promotes energy efficiency for a cleaner environment, a more prosperous economy, and a higher quality of life in the Southeastern region of the United States. Its goals include positioning energy efficiency as a viable tool for strengthening the regional economy and protecting the environment; promoting energy efficiency to increase electric reliability; empowering consumers at all income levels through education on the benefits of energy efficiency, including energy savings and quality of life; and promoting the development of a vibrant energy services industry throughout the Southeast, and growing markets for energy efficient products. For more information visit www.seealliance.org.