Clean Energy Business Loan Program

Summary

Note: Under the American Recovery and Reinvestment Act (ARRA) of 2009, the U.S. Department of Energy (DOE) is providing a total of $300 million to U.S. states, U.S. territories and the District of Columbia to establish rebate programs for new energy-efficient appliances that replace existing appliances in homes. Each state and territory has designed its own program. Rebates will be available until the state or territory program's funding is exhausted. Be sure to confirm that rebate funds are still available in your state or territory before making purchasing decisions.

Deadline for submissions was July 30, 2010. Applications received after this date will not be considered.

The Wisconsin Department of Commerce is offering low-interest loans to for-profit manufacturing companies for projects that support renewable energy and energy efficiency jobs within the state. The program is only available for businesses locating or expanding within the state of Wisconsin. Loans will be issued for up to 25% of project cost at a fixed interest rate of 2% over terms of 5-7 years (working capital) or 5-10 years (equipment). Loan repayment may be deferred for up to one year. The program is intended for businesses that promote:

• major renewable energy production projects;
• the manufacture of clean energy products;
• advanced manufacturing of clean energy components;
• retooling to provide component parts and other critical needs for a successful, totally integrated supply chain;
• improving industrial users’ competitiveness through energy efficiency and renewable energy deployment.

The definitions of eligible renewable energy and energy efficiency related technologies are not specified, but the program website gives several examples possible projects. Project eligibility is limited to those that create or retain jobs through clean energy advanced manufacturing, clean energy supply chain development, and through reduction in the use of fossil fuels at industrial facilities, including the integration of renewable energy into industrial processes. Funds specifically may not be used for construction or building repairs; to purchase buildings or land; or to perform research, development, and demonstration activities for non-commercial technologies. Projects that have already obtained other necessary financing pieces; environmental and zoning permits; and other clearances will be given a high priority under this program.

Money to fund this program comes from State Energy Program funds under the federal American Recovery and Reinvestment Act (ARRA) of 2009, otherwise known as the federal stimulus bill. Currently, $28 million in funding is available through this program with up to $5 million set aside for applications in state's cheese industry. The program is eventually expected to have a total budget of $55 million. Please consult the program website for further details or contact the appropriate Commerce Area Development Manager to discuss your project.