Iowa Energy Saving Loan Program
Low-interest loans help Iowa businesses, nonprofits and public entities pay for energy audits and efficiency upgrades in commercial buildings and qualifying affordable multifamily housing.
Această oportunitate este disponibilă momentan în limba engleză.
You can finance a qualifying building energy audit or improvements recommended by that audit, such as insulation, air sealing, efficient lighting, heating and cooling upgrades, hot-water equipment, controls, and window or door retrofits. The loan reimburses costs directly related to the audit or approved improvements, including materials, equipment, labour, contracting and programme compliance.
You can request up to 90% of total project costs. Requests of $50,000 to $2 million are preferred; obtain Iowa Economic Development Authority (IEDA) preapproval before applying outside that range. The application screening criteria use a $2 million limit, so a larger request needs that prior discussion. Underwriters may reduce the requested loan.
Interest is 0% for affordable multifamily housing, 1% for small businesses and 2% for other commercial buildings. All loans carry a 1% origination fee, with title opinion and abstract update fees due during underwriting. You must repay the borrowed money over a term no longer than the improvements' useful life, up to seven years. You may repay some or all of it early without penalty.
IEDA generally secures the loan with a subordinate mortgage: its claim against the property sits behind existing senior lenders. The loan cannot exceed available property equity after accounting for other mortgages and liens. Underwriters assess your ability to repay, including projected savings and cash flow; their target debt-service coverage ratio is at least 1.1, meaning projected cash flow covers debt payments by at least 1.1 times.
Payment reimburses costs already incurred; there are no advances. You must first meet the agreement's documentation and collateral conditions before IEDA can release funds. Claims go through IowaGrants and must be at least $5,000. Audit funding is normally paid in one lump sum. Approved project applications can provide for claims before the whole project is finished. Submit the final claim and final report within 60 days of the project completion date; IEDA holds back at least 10% until the final report is approved and milestones and goals are met.
Submit quarterly progress reports, including when no money is claimed. During the loan term, IEDA may request updated utility bills and evidence that housing remains affordable. Substantive project or loan changes need an IEDA-approved amendment. Noncompliance can require returning loan funds; default can lead to recovery of the loan, interest and other penalties.
Eligibility
- Your organisation must be an Iowa-based business, nonprofit or public entity that owns or operates an eligible building in Iowa. Commercial borrowers must conduct more than 50% of their business in Iowa, measured by revenue, transactions or services. Mixed-use buildings may qualify with supporting documentation during the application review. Contractors performing the retrofit may be the direct borrower instead of the owner when all programme requirements are met.
- Affordable multifamily buildings need at least 20 units and active participation in an Iowa Finance Authority affordability programme such as Section 8, Low-Income Housing Tax Credit or HOME. Single-family homes, residential buildings below 20 units, nonqualifying multifamily housing and new construction are excluded. Organisations with a history of defaulted loans or state-programme compliance violations are excluded.
- A nationally certified, experienced building auditor must use eligible software; software other than the recommended U.S. Department of Energy (DOE) Audit Template needs IEDA approval. The audit must recommend improvements that are cost-effective over their useful lives and controls to reduce or redistribute peak energy demand. Commercial audits must measure overall consumption, identify peak demand and its main sources, and estimate energy and cost savings from all recommended improvements.
- Multifamily audits must assess health and safety, occupants' needs, overall costs and benefits, and programme goals under ENERGY STAR Home Performance Assessment criteria. They must supplement the Audit Template report with ENERGY STAR Portfolio Manager comparison output, which compares energy use with similar multifamily buildings nationally. They must also provide a Home Energy Score or DOE-approved equivalent, including a RESNET Home Energy Rating System score. A Home Energy Score needs a certified assessor; DOE accepts Audit Template's annual energy-and-cost-savings and payback-with-incentives outputs as an equivalent.
- Improvements must be recommended by the qualifying audit, collectively cost-effective, improve comfort, energy efficiency or indoor air quality, and either reduce energy intensity or improve peak-demand control. Multifamily work must also meet at least one Home Performance Assessment criterion. The standard cost-effectiveness test is annual energy savings in dollars multiplied by the improvements' useful life, then divided by estimated improvement cost, greater than 100%, so the value of lifetime energy savings must exceed the improvement cost. Documented operating costs and other benefits may enter the calculation.
- Plan to complete the project within two years of approval. Equipment must be appropriately sized and historic-preservation requirements apply. The listed retrofit route excludes tree removal, tree trimming and ground disturbance. Activities outside the federal environmental clearance's allowable list require DOE review and approval before starting.
- Do not begin construction or buy equipment before award selection and federal compliance clearance. You must have capacity to administer the federal award or budget for an experienced administrator. Federal procurement rules apply.
- Contractors must meet applicable Davis-Bacon prevailing-wage rules. For construction, alteration or repair work above $2,000, covered labourers and mechanics must receive local prevailing wages. Auditors and inspectors doing no physical or manual site work are outside that wage coverage. Borrowers must complete compliance training, ensure weekly certified payroll submissions through LCPtracker unless an access-related waiver is granted, and retain original certified payrolls for three years after project completion.
- Build America, Buy America rules apply where the borrower and project involve covered infrastructure that is publicly owned or serves a public function. Solely private-use infrastructure is outside that definition; the agency decides applicability. Covered iron, steel and construction materials must be produced in the United States; manufactured products need US manufacture and more than 55% US component cost unless another applicable standard governs. The rules cover incorporated or affixed materials and flow through contracts; temporary tools and removable furnishings are excluded.
- Property purchases or rentals, office equipment, furniture and fixtures, intangible assets, international travel, insurance and telephone expenses are not eligible costs.
How to apply
- Statut
- se închide 1 mai 2029
- Se deschide
- Se închide
- Condițiile sesiunii de finanțare
- Applications close earlier if funds are exhausted.
- The published deadline is 4 p.m. CST on the closing date.
Create an IowaGrants account and obtain a federal Unique Entity Identifier through the federal System for Award Management (SAM.gov) if you do not already have one. New account registration and activation require at least two weeks; obtaining the federal identifier can take several weeks. Apply through IowaGrants during the published intake, which can end early if funds are exhausted.
Complete the digital application with the project cost-and-timeline spreadsheet, vendor quote and qualifying audit report where applicable. Provide ownership and Iowa business-status verification. Bring 12 months of utility bills to the required virtual interview with IEDA. A project loan needs the qualifying audit completed before applying; an audit loan can be requested before the audit is complete.
IEDA reviews applications in the order received, checks eligibility and financial viability, and conducts the interview before an award. If approved, sign and return the loan agreement within 90 days of its transmission. For programme questions and out-of-range preapproval requests, contact Molly Kiick at molly.kiick@iowaeda.com or 515.348.6219.