Financing is available for eligible small business owners upgrading to high-performance heat pumps and variable refrigerant flow (VRF) systems. Businesses that have an electric account labeled “Small General Service” (SGS), “General Service” (GS), or “Medium General Service” (MGS) with an average monthly electrical demand under 100 kW may be eligible for these loans. Click here for a bill example.
APPLY FOR A SMALL BUSINESS LOAN
When you click the link above, you will need to create an account with the Efficiency Maine Green Bank (if you have not done so already). Once logged in, your customer portal will provide you with instructions to assist in applying for financing.
Contractors who would like to offer Efficiency Maine Small Business Loans to their customers can find information about getting started here.
A summary of current Small Business Loan options appear below.
| 4-Year 7.99% APR | ||||
| Customer/Borrower | ||||
| Loans available only for qualifying energy efficiency upgrades at qualifying property. Both subject project property and Borrower Authorized Representative’s Principal Residence1 must be in the state of Maine. | Yes | |||
| The Borrower must be an owner or have an ownership interest in the property (Property owned by Business or LLC 2,) or must be a tenant of the property with appropriate permissions from the Property Owner and a remaining lease engagement longer than the term of the loan. | Yes | |||
| The Borrower must be a Maine-based small business with one individual owner of the business designated as the Authorized Representative to execute the loan on behalf of the organization and serve as personal guarantor. | Yes | |||
| Building Types | ||||
| The subject property must be a Commercial Property where the occupant is a Small Business with an average electrical demand of under 100kW (Small General Service, General Service, or Medium General Service depending on the utility territory). | Yes | |||
| Equipment and Upgrades | ||||
| Projects must install equipment eligible for an incentive from Efficiency Maine’s Commercial and Industrial Prescriptive Initiatives. The project is not required to receive an incentive. | Yes | |||
| Heat Pumps or Variable refrigerant flow (VRF) systems– for space heating and cooling in which the project is not a heat pump/fossil fuel combination system (“dual fuel”). To clarify, electric panel and electrical service upgrades are considered part of an eligible heat pump upgrade when they are required to complete the project. |
Yes | |||
Other Project Costs – Other Project Costs are only eligible for financing if they meet the below criteria:
|
Yes | |||
| Contractor Requirements | ||||
| Upgrades must be installed by an Efficiency Maine Qualified Partner (QP) or Efficiency Maine Residential Registered Vendor (RRV). The Financed Amount will be disbursed directly to the QP or RRV on behalf of the borrower at project completion. | Yes | |||
1 Principal Residence – In the case of a taxpayer using more than one property as a residence, whether the property is used by the taxpayer as the taxpayer’s principal residence depends upon all the facts and circumstances. If a taxpayer alternates between two properties, using each as a residence for successive periods of time, the property that the taxpayer uses a majority of the time during the year ordinarily will be considered the taxpayer’s principal residence.
2 Property owned by business or LLC – The subject property is owned by a business or LLC and the borrower is an owner of the business or LLC
| 4-Year 7.99% APR | ||||
| Fees | ||||
| Origination Fee | $0 | |||
| Application Fee | $0 | |||
| Pre-Payment Fee | $0 | |||
| Non-sufficient funds fee (per occurance) | $25 | |||
| Late Payment fee of 5% of amount due or $10, whichever is less | Yes | |||
| Terms & Rates | ||||
| Term Length (years) | 4 | |||
| Annual Percentage Rate (APR). Rates shown are as of today and are subject to change. Rates are fixed and interest is calculated using the simple interest, Actual/360 method. | 7.99% | |||
| The Amortization or Repayment schedule is monthly principal and interest payments. (Hover over “Yes” to see loan examples.) | Yes | |||
| Loan Amount | ||||
| Maximum Loan Amount | $25,000 | |||
| Minimum Loan Amount | $0 | |||
| The maximum loan amount cannot exceed the eligible net project costs (the total cost of the project less the anticipated rebate amount). | Yes | |||
| Maximum Commercial Borrowing Amount | ||||
| The Maximum Commercial Borrowing Amount of a Business for Small Business Loans. | $25,000 | |||
| Efficiency Maine may determine a maximum borrowing amount for a commercial borrower at their own discretion. | Yes | |||
| Maximum Unsecured Consumer Borrowing Amount Depending on their creditworthiness, each residential borrower will have a maximum borrowing capacity from Efficiency Maine Green Bank across all residential programs (“Maximum Unsecured Consumer Borrowing Amount”). |
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| Maximum Unsecured Consumer Borrowing Amount (per borrower) when the borrower meets the following criteria: maximum Debt-to-Income Ratio (DTI) of 55% and minimum average FICO score of 620. | $25,000 | |||
| Underwriting Criteria | ||||
| Maximum Debt-to-Income Ratio (DTI) | 55% | |||
| Minimum average FICO score | 620 | |||
| A record of previous delinquency, default, or write-off may result in denial of credit. | Yes | |||
| Collateral Requirements | ||||
| Efficiency Maine takes a security interest in any Efficiency Maine rebates or incentives payable to the Borrower or Authorized Representative. Efficiency Maine will require the grant of a purchase money security interest in the equipment acquired with the loan proceeds. Efficiency Maine requires a personal guarantee from the Authorized Representative of the business. | Yes | |||
| Funding Requirements | ||||
| All loan documents must be fully executed by the Borrower’s Authorized Representative and Guarantor(s). Unless expressly stated in writing, in the sole discretion of Efficiency Maine, loan documents must be fully executed within 60 days of the Credit Authorization document being executed. | Yes | |||
| Project Work Scope must be fully executed by the Borrower’s Authorized Representative, Guarantor(s), and Contractor. | Yes | |||
| Project Completion Certification must be fully executed by the Borrower’s Authorized Representative, Guarantor(s), and Contractor. Unless expressly stated in writing, in the sole discretion of Efficiency Maine, the project must be installed within 120 days of receiving Notice to Proceed. | Yes | |||
| The project must be performed and installed in accordance with applicable program requirements. | Yes | |||
| Disbursements will be made directly to the Contractor on behalf of the borrower after project completion. | Yes | |||
Contact Information: info@efficiencymaine.com or call (866) 376-2463
To be routed to the proper representative, please clearly indicate that you are inquiring about loans and financing.
Customer/Borrower will be required to execute a loan agreement and promissory note with Efficiency Maine. Additional terms and conditions may apply. Efficiency Maine will perform an underwriting review as part of each loan application process. Program and incentives subject to change or termination. Incomplete information may delay or disqualify your loan.
Efficiency Maine takes a security interest in any rebates or incentives payable to the Borrower from Efficiency Maine. If Efficiency Maine intends to exercise their security interest in a payable Efficiency Maine rebate or incentive, Efficiency Maine will provide notice to the customer and contractor. Efficiency Maine will require the grant of a purchase money security interest in the equipment acquired with the loan proceeds. Efficiency Maine requires a personal guarantee from at least one Authorized Representative of the business.
Projects must install equipment eligible for an incentive from Efficiency Maine’s Commercial and Industrial Prescriptive Initiative.
In the instance a Borrower makes an unscheduled or extra payment that affects the principal of the loan, the original maturity date and payment schedule will be maintained, but the monthly payment amount will be reduced for the remainder of the term.
