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New Tennessee energy loan program can boost business profitability

Aug. 26, 2010 – A new lending initiative created by the State of Tennessee, TVA and other partners will help make companies more competitive, Governor Phil Bredesen said when he announced the launch of the $50 million Energy Efficiency Loan Program.

The innovative program will offer qualifying businesses access to loans at below-market rates. The companies will be able to finance up to 100 percent of the costs for installing energy efficient technology, energy retrofits and renewable energy systems that will help them reduce energy consumption.

“Along with technical assistance and cash incentives, we know that many companies also need a low-interest financing option to move energy-efficiency projects from planning to reality," said TVA's Ken Breeden, executive vice president of Customer Relations. "Helping these businesses and industries become more energy efficient will increase their competitiveness and strengthen Tennessee’s economy.”

The program is being administered by Pathway Lending, which is offering loans at 5 percent with terms extending to 10 years. The loans can be repaid with the energy cost savings derived from each project.

Other project partners include the U.S. Department of Energy, the U.S. Economic Development Administration and Pinnacle Financial Partners.

Businesses can get more information and apply online at www.pathwaylending.org. In addition, Pathway Lending will hold a number of free informational workshops across the state. Find locations here.