SoCalREN Revolving Loan Fund for Public Agencies
The SoCalREN Revolving Loan Fund (RLF) supports energy efficiency upgrades of public agency facilities by providing the financing your agency needs to make your energy efficiency project a reality. Loans can provide short-term construction financing to bridge the delay between construction and On-Bill Financing (OBF) from the utility after project completion or during agency budget allocation.
By choosing the Revolving Loan Fund, your agency can participate in a virtuous cycle with fellow public agencies enrolled in SoCalREN. Repaid loans from other agencies working on energy efficiency help to make your project’s financing a reality, and when your agency repays your loan, you pay it forward for the next agency seeking to improve their community by saving energy.
- Bridge the gap: revolving loan funds can provide the bridge funding your agency needs to make your energy efficiency project a reality
- Easy process: a 0% interest rate, simple application, efficient processing, and relatively quick allocation of funds make Revolving Loan funding an easy “yes”
- A proven model: revolving loan funds have been used effectively nationwide, so you can rest assured this innovative approach is safe for your agency
- SoCalREN support: the Revolving Loan Fund is part of a suite of customizable services, including project management, incentive application, procurement, and other support SoCalREN provides for enrolled agencies
How it Works
Frequently Asked Questions
What is the SoCalREN Revolving Loan Fund?
The SoCalREN Revolving Loan Fund (RLF) is a 0% interest gap financing tool offered to enrolled agencies to help finance energy efficiency projects. It is a self-replenishing pool of money that serves as a flexible and attractive source of capital that can be used in combination with longer term financing.
What are the requirements to apply for the Revolving Loan Fund?
To be eligible for the Revolving Loan Fund, your agency must be enrolled in the SoCalREN Public Agency Programs. The governing board of your agency must also authorize the borrowing of funds for the efficiency improvements. Upon Revolving Loan Fund application approval, SoCalREN provides an Offer to Finance and an authorizing Template Resolution that states the not-to-exceed loan amount and terms of repayment to facilitate the process.
What is the interest rate?
SoCalREN’s Revolving Loan Fund (RLF) offers a 0% interest rate.
Why do you charge a service fee?
The Revolving Loan Fund includes a 1% service fee due upon repayment of the loan (e.g. a $100,000 loan has a $1,000 service fee). This fee helps maintain the fund and ensure other enrolled agencies are able to use the fund for their future energy efficiency projects.
What are the repayment terms?
The repayment term is up to two years. There is no penalty for early payment. Agencies that do not complete repayment within 90 days of the two year deadline will be subject to a 3% late payment charge. There is no repayment schedule for loans under $500,000 and loans over $500,000 have a repayment schedule of four payments over the two years (every six months) starting at the loan agreement date.
How do I apply?
Applying is easy—just complete a simple application form with the support of your SoCalREN Project Manager. The application includes project data, basic financial information and estimated energy savings. Once you apply, SoCalREN will provide your agency with an offer to finance that includes the amount approved for and other terms and conditions.