FEDA program to make loans for energy projects

Fairfield Economic Development Association is administering a new program for Jefferson County homeowners, businesses and agriculture operations to borrow funds to upgrade energy efficiency and/or install renewable energy projects.

?FEDA has been working on this for several months,? said Tracy Vance, executive director. ?FEDA has received $1 million for this project.?

The loan program will run for 15 years, Vance said.

Funding for the loan program comes from the federal American Recovery and Reinvestment Act.

Because FEDA guarantees 25 percent of the loan funds, FEDA can leverage the $1 million into $4 million worth of loans to residents in Jefferson County.

?So this runs for 15 years or until the money is all loaned out,? said Vance. ?As loans are paid back, the money can be used again.?

The goal of Jefferson County?s Energy Rewards Loan Program is to make energy projects more affordable. Borrowers can borrow a minimum of $3,000 to a maximum of $100,000 to upgrade appliances, weatherize a home, business or ag building, update lighting or complete a renewable energy project such as installing solar or geothermal sources.

?We?re excited about the collaboration with Fairfield?s Go Green Plan, Alliant?s Hometown Rewards Program, Iowa State University Extension and Outreach, Iowa Department of Administrative Services and our local lenders,? said Vance. ?This collaborative effort is an excellent example of combining economic development with sustainable practices that benefits the entire community.?

The first step to get a loan is to complete a loan application checklist, which includes reviewing a list of approved projects, receiving a free home or business energy assessment from your utility provider and soliciting a work bid from a list of verified contractors.

The loan application checklist and a list of 17 Fairfield-based and one Lockridge-based verified contractors are at the website www.growfairfield.com/business-resources.

Also on the website are the approved projects and materials checklist for each of the three categories: home, business and agriculture.

Loans are made through local banks and a credit union, with an interest rate of prime plus 0.75 percent (evaluated on an annual basis). A minimum credit score of 625 is needed. Consumer payment to income ratio cannot exceed 40 percent. Commercial credit debt service cover ratio is 1.2 or better. Repayment period will be three to 10 years. Repayments by borrowers will not exceed 80 percent of the monthly savings from the energy project.

Local financial institutions participating in Jefferson County?s Energy Rewards Loan Program include: Community 1st Credit Union, First National Bank in Fairfield, Libertyville Savings Bank and MidWestOne Bank. The lending process and loan underwriting various among financial institution, borrowers should refer to participating institutions for more information about their lending process and loan underwriting.

For more information on the program, contact Anna Bruen, project coordinator at 641-919-2693 or by email at annabruen@gmail.com.