NOTE: Starting July 1, 2016, the AlabamaSAVES program will transition into a participating loan program. The program will continue to receive applications for the current program until March 31, 2016. Specifics of the participating loan program will be made available in the future.
The Alabama Department of Economic and Community Affairs (ADECA) offers an energy efficiency and renewable energy revolving loan fund called AlabamaSAVES. The funds are available to businesses and industries located in Alabama for retrofitting existing facilities. A variety of technologies are eligible; see the program technical guide for full details.
In order to apply, interested parties must first contact an AlabamaSaves representative. Upon receiving and submitting the necessary paperwork, a consultation on financing and next steps is scheduled. The Loan Application formalizes the request for a subsidy or direct loan. The process requires that an energy assessment, defining the project and estimated energy savings impact, be submitted and reviewed to ensure a simple payback of 10 years or better.
The program operates as a revolving loan program where the fund is replenished by interest and principal repayments made on prior loans and as a loan subsidy program enabling low cost loans from private lenders through credit enhancements – interest rate buydowns and loan loss reserves. The fund was initially capitalized with American Recovery and Reinvestment Act (ARRA) funding. Please see the program web site for additional information and program materials.
Maximum Loan: Maximum loan: $4,000,000
Loan Term: Interest Rate: 1% as of December 2014
Loan Length: 10 year maximum
Application fee: $500 for projects less than $250,000; $1,000 for projects over $250,000
Program origination fee: (3% for direct loans, 2% and reasonable and customary costs from a participating lender partner for subsidized loans). Origination fees are subject to a minimum of $2,000.