SoCalREN Revolving Savings Fund for Public Agencies
The SoCalREN Revolving Savings Fund (RSF) supports energy efficiency upgrades of public agency facilities by providing the financing your agency needs to make your project a reality. Loans can provide upfront construction financing to enable your project to move forward today, unlocking energy cost savings now. It can also serve 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 Savings 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.
Benefits
- 0% interest rate: no interest payments over the life of the loan
- Bridge the gap: revolving funds can provide the bridge funding your agency needs to make your energy efficiency project a reality
- Easy process: a simple application, efficient processing, and allocation of funds by check within 2 weeks of executing the loan agreement make Revolving Savings funding an easy “yes”
- A proven model: revolving funds have been used effectively nationwide, so you can rest assured this innovative approach is safe for your agency
- SoCalREN support: the Revolving Savings 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 Savings Fund?
The SoCalREN Revolving Savings Fund is a 0% interest 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 Savings Fund?
To be eligible for the Revolving Savings 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 by signing a Loan Agreement. Upon RSF application approval, SoCalREN provides a Loan Offer Letter and a Loan Agreement that states the not-to-exceed loan amount and terms of repayment to facilitate the process.
What is the interest rate?
SoCalREN’s RSF offers a 0% interest rate.
When are funds disbursed?
Funds are disbursed by check within 2 weeks of executing the loan agreement.
What are the repayment terms?
The repayment term is up to five years with no penalty for early payment. There is no repayment schedule for loans under $500,000 and loans over $500,000 have a repayment schedule of ten semi-annual payments over five years (every six months) starting at the loan agreement date. Agencies are expected to repay the total amount received through utility incentives and OBF within 90 days of receipt of those payments from the utilities. Agencies that do not complete repayment of the full loan within 90 days of the five year deadline will be subject to a 3% late payment charge.
How is RSF unique compared to other zero-percent or low-interest energy loans?
Funds are disbursed by check within 2 weeks of executing the loan agreement. Loan amounts are not dependent on utility incentives. Additional paperwork, such as reimbursement invoices or proof of payment, are not required. Also, no post-project implementation documentation is required, relieving your agency from investing additional time and resources after funds are disbursed.
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. You can also let SoCalREN know about your interest today by filling out this interest form so your Project Manager can follow-up with additional details.
How many loans can my agency take out at one time?
Agencies may take out multiple RSF loans with a maximum of one loan per project. To maximize the number of energy efficiency projects funded, no single agency will take more than 50% of the original seed capital to fund one or multiple projects.