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Small Business and Not-for-Profit Customers

NYSERDA Financing Options

NYSERDA offers two low-interest energy efficiency financing options for small businesses and not-for-profits. See below for more information on how the programs 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 0% interest 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 a participating lender of their choice 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 0% interest. 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

2.5% (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 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:

  • Organization in existence at least two years
  • Credit score of 650 or higher
  • No bankruptcies within the last 5 years
  • No current judgments or liens in excess of $5,000
  • Debt service coverage ratio > 1.2
*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.

    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, Long Island Power Authority, 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

    Energy efficiency improvements recommended in an energy assessment provided by a NYSERDA program, a utility program or by a qualified energy consultant to be installed in a building or space occupied by a small business with 100 employees or less or by a not-for-profit organization. All energy assessments must meet NYSERDA’s qualified energy assessment standards [PDF].

    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

    Energy efficiency improvements identified in an energy assessment provided by a NYSERDA program, a utility program or by a qualified energy consultant to be installed in a building or space occupied by a small business with 100 employees or less or by a not-for-profit organization. All energy assessments must meet NYSERDA’s qualified energy assessment standards [PDF].

    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.

    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 
    Last Updated: 04/10/2013