Information for Borrowers

NYSERDA offers two financing options for small businesses, multifamily building owners, and not-for-profits for energy efficiency and renewable projects. See below for more information on how the financing options work, who is eligible, and how to apply.

Participation Loan	On-Bill Recovery Loan
How it Works NYSERDA partners with a lender of the borrower’s choice on a loan in which NYSERDA finances 50% of the loan principal, up to $50,000, at its interest rate and the lender finances the remaining loan principal at market rate. The lender issues the loan to the borrower and the borrower makes monthly loan payments to the lender. The lender pays NYSERDA back.	How it Works The borrower works with Slipstream, Inc. to secure a NYSERDA loan of up to $50,000. The borrower repays the NYSERDA loan through a charge on their monthly utility bill.
Loan Amount Through partnership in the loan, lenders can offer energy efficiency loans of up to $100,000 or more.	Loan Amount Maximum energy efficiency loan amount is $50,000.
Interest Rate NYSERDA’s share of the loan is financed at the Wall Street Journal Prime Rate of Interest + 2%, fixed at closing for the term of the loan. The interest rate is subject to change. The lender determines the interest rate it will charge for its share of the loan based on the lender’s underwriting criteria. Borrowers can expect to obtain financing at a reduced interest rate by participating in the program.	Interest Rate The Wall Street Journal Prime Rate of Interest + 2%, fixed at closing for the term of the loan. (Subject to change.)
Fees Determined by lender.	Fees Processing fee may be charged by lender. NYSERDA will bill borrowers a fee of 1.5% of unpaid loan installment charges for late payment. If borrower’s utility service is terminated, the borrower may be subject to a reconnection fee from the utility. A past due balance on a utility account may subject borrower to a collection fee by the utility as authorized by the Public Service Commission. A returned payments fee may be charged by the utility.
Loan Term The loan term is determined by the lender but cannot exceed 10 years.	Loan Term NYSERDA establishes a minimum loan term on the Request for Financing Package or financing eligibility letter to ensure that the expected yearly energy cost savings from the energy efficiency project exceed the borrower’s yearly loan installment payments. NYSERDA also establishes a minimum loan term to ensure that the number of years the borrower spends paying back the loan does not exceed the average number of years the energy efficiency measures in the project are expected to perform. The lender determines the loan term. However, loan terms must be ≥ the minimum loan term, identified on the NYSERDA-approved Request for Financing Package but ≤ 10 years.
Lending Criteria May vary by lender.	Lending Criteria Lenders will follow NYSERDA's underwriting criteria* when originating NYSERDA loans. Criteria include but are not limited to: All small business loans are to be personally guaranteed by the business owner(s) with a minimum 20% ownership. Guarantor minimum credit score of 660 Guarantor debt-to-income Ratio of 50% or less Guarantor: no bankruptcy, foreclosure or repossession in the past 7 years Experian’s Business Credit Report will be used to determine if the applicant meets the following criteria: Minimum 1 year in business Minimum Intelliscore Plus V3 credit score of 660 Minimum Financial Stability Risk score of 660 No Known Judgments or Tax Liens No Tradelines more than 30 days beyond terms 5 No Bankruptcy in the last 7 years *These criteria are subject to change.
Borrower Eligibility Small businesses with 100 employees or less and not-for-profit organizations that own, lease or manage their building or lease space within a building and have a release from the building owner to apply for financing through the program. Multifamily building owners with a release from the building owner to apply for financing renewable energy projects through the program.	Borrower Eligibility Small businesses with 100 employees or less and not-for-profit organizations that own, lease or manage their building or lease space within the building and have a release from the building owner to apply for financing through the program. The borrower must be named on the utility account of one of the following participating utilities: Central Hudson, Con Edison, PSEG Long Island, National Grid (upstate NY customers only), New York State Electric and Gas Corporation, Orange & Rockland, Rochester Gas and Electric. The borrower must meet eligibility requirements and NYSERDA’s loan underwriting standards. All individuals or legal entity representatives named on the property deed must sign the On-Bill Recovery Program Declaration [PDF] to provide notice of the obligations under the loan to any subsequent purchaser of the property.
Project Eligibility Renewable Energy Projects. The purchase and installation of a NYSERDA-approved PV or NY Clean Heat NY application is eligible for Participation Loan financing provided the payback period, after incentives, is 15 years or less. PV Projects. For the purchase and installation of PV projects, your contractor will submit all required documentation to NYSERDA for review and approval. Air Source or Ground Source Projects. If you are installing an air source or ground source heat pump, your contractor will submit documentation to NYSERDA for review. If the system is equal to or greater than 300,000 BTUs/hour, then utility approval is required for the system to be eligible for financing. Energy Efficiency Projects. Energy Efficiency improvements identified on qualified energy assessments will be considered for financing. Services can include but are not limited to: Heating, Ventilation, and Air Conditioning (HVAC) Building Envelope Lighting Domestic or Service Hot Water Controls Business Processes (Kitchens, Laundries, Air Compression etc.) To be eligible, the estimated amount of money a customer can expect to save on energy as the result of implementing the energy efficiency project must be sufficient to pay off the upfront cost of implementing the project within 15 years or less.	Project Eligibility Renewable Energy Projects. The purchase and installation of a NYSERDA-approved PV or Clean Heat NY application is eligible for Participation Loan financing provided the payback period, after incentives, is 10 years or less. PV Projects. For the purchase and installation of PV projects, your contractor will submit all required documentation to NYSERDA for review and approval. Air Source or Ground Source Projects. If you are installing an air source or ground source heat pump, your contractor will submit documentation to NYSERDA for review. If the system is equal to or greater than 300,000 BTUs/hour, then utility approval is required for the system to be eligible for financing. Energy Efficiency Projects. Energy efficiency improvements identified on qualified energy assessments will be considered for financing. Services can include but are not limited to: Heating, Ventilation, and Air Conditioning (HVAC) Building Envelope Lighting Domestic or Service Hot Water Controls Business Processes (Kitchens, Laundries, Air Compression etc.) To be eligible, the estimated amount of money a customer can expect to save on energy as the result of implementing the energy efficiency project must be sufficient to pay off the upfront cost of implementing the project within 10 years or less. To be eligible for On-Bill Recovery, estimated annual energy savings must be greater than estimated annual loan payments.
Participation Loan	On-Bill Recovery Loan

Participation Loan

On-Bill Recovery Loan

How it Works

NYSERDA partners with a lender of the borrower’s choice on a loan in which NYSERDA finances 50% of the loan principal, up to $50,000, at its interest rate and the lender finances the remaining loan principal at market rate.

The lender issues the loan to the borrower and the borrower makes monthly loan payments to the lender. The lender pays NYSERDA back.

How it Works

The borrower works with Slipstream, Inc. to secure a NYSERDA loan of up to $50,000. The borrower repays the NYSERDA loan through a charge on their monthly utility bill.

Loan Amount

Through partnership in the loan, lenders can offer energy efficiency loans of up to $100,000 or more.

Loan Amount

Maximum energy efficiency loan amount is $50,000.

Interest Rate

NYSERDA’s share of the loan is financed at the Wall Street Journal Prime Rate of Interest + 2%, fixed at closing for the term of the loan. The interest rate is subject to change. The lender determines the interest rate it will charge for its share of the loan based on the lender’s underwriting criteria.

Borrowers can expect to obtain financing at a reduced interest rate by participating in the program.

Interest Rate

The Wall Street Journal Prime Rate of Interest + 2%, fixed at closing for the term of the loan. (Subject to change.)

Fees

Determined by lender.

Fees

Processing fee may be charged by lender.

NYSERDA will bill borrowers a fee of 1.5% of unpaid loan installment charges for late payment.

If borrower’s utility service is terminated, the borrower may be subject to a reconnection fee from the utility.

A past due balance on a utility account may subject borrower to a collection fee by the utility as authorized by the Public Service Commission.

A returned payments fee may be charged by the utility.

Loan Term

The loan term is determined by the lender but cannot exceed 10 years.

Loan Term

NYSERDA establishes a minimum loan term on the Request for Financing Package or financing eligibility letter to ensure that the expected yearly energy cost savings from the energy efficiency project exceed the borrower’s yearly loan installment payments.

NYSERDA also establishes a minimum loan term to ensure that the number of years the borrower spends paying back the loan does not exceed the average number of years the energy efficiency measures in the project are expected to perform.

The lender determines the loan term. However, loan terms must be ≥ the minimum loan term, identified on the NYSERDA-approved Request for Financing Package but ≤ 10 years.

Lending Criteria

May vary by lender.

Lending Criteria

Lenders will follow NYSERDA's underwriting criteria* when originating NYSERDA loans. Criteria include but are not limited to:

All small business loans are to be personally guaranteed by the business owner(s) with a minimum 20% ownership.
Guarantor minimum credit score of 660
Guarantor debt-to-income Ratio of 50% or less
Guarantor: no bankruptcy, foreclosure or repossession in the past 7 years

Experian’s Business Credit Report will be used to determine if the applicant meets the following criteria:

Minimum 1 year in business
Minimum Intelliscore Plus V3 credit score of 660
Minimum Financial Stability Risk score of 660
No Known Judgments or Tax Liens
No Tradelines more than 30 days beyond terms 5
No Bankruptcy in the last 7 years

*These criteria are subject to change.

Borrower Eligibility

Small businesses with 100 employees or less and not-for-profit organizations that own, lease or manage their building or lease space within a building and have a release from the building owner to apply for financing through the program.

Multifamily building owners with a release from the building owner to apply for financing renewable energy projects through the program.

Borrower Eligibility

Small businesses with 100 employees or less and not-for-profit organizations that own, lease or manage their building or lease space within the building and have a release from the building owner to apply for financing through the program.

The borrower must be named on the utility account of one of the following participating utilities: Central Hudson, Con Edison, PSEG Long Island, National Grid (upstate NY customers only), New York State Electric and Gas Corporation, Orange & Rockland, Rochester Gas and Electric.

The borrower must meet eligibility requirements and NYSERDA’s loan underwriting standards.

All individuals or legal entity representatives named on the property deed must sign the On-Bill Recovery Program Declaration [PDF] to provide notice of the obligations under the loan to any subsequent purchaser of the property.

Project Eligibility

Renewable Energy Projects. The purchase and installation of a NYSERDA-approved PV or NY Clean Heat NY application is eligible for Participation Loan financing provided the payback period, after incentives, is 15 years or less.

PV Projects. For the purchase and installation of PV projects, your contractor will submit all required documentation to NYSERDA for review and approval.

Air Source or Ground Source Projects. If you are installing an air source or ground source heat pump, your contractor will submit documentation to NYSERDA for review. If the system is equal to or greater than 300,000 BTUs/hour, then utility approval is required for the system to be eligible for financing.

Energy Efficiency Projects. Energy Efficiency improvements identified on qualified energy assessments will be considered for financing. Services can include but are not limited to:

Heating, Ventilation, and Air Conditioning (HVAC)
Building Envelope
Lighting
Domestic or Service Hot Water
Controls
Business Processes (Kitchens, Laundries, Air Compression etc.)

To be eligible, the estimated amount of money a customer can expect to save on energy as the result of implementing the energy efficiency project must be sufficient to pay off the upfront cost of implementing the project within 15 years or less.

Project Eligibility

Renewable Energy Projects. The purchase and installation of a NYSERDA-approved PV or Clean Heat NY application is eligible for Participation Loan financing provided the payback period, after incentives, is 10 years or less.

PV Projects. For the purchase and installation of PV projects, your contractor will submit all required documentation to NYSERDA for review and approval.

Energy Efficiency Projects. Energy efficiency improvements identified on qualified energy assessments will be considered for financing. Services can include but are not limited to:

Heating, Ventilation, and Air Conditioning (HVAC)
Building Envelope
Lighting
Domestic or Service Hot Water
Controls
Business Processes (Kitchens, Laundries, Air Compression etc.)

To be eligible for On-Bill Recovery, estimated annual energy savings must be greater than estimated annual loan payments.

Participation Loan

On-Bill Recovery Loan