programs SECO

Notice of Loan Fund Availability — LoanSTAR Program

Loan Documents: RFA#BE-G19-2017

LoanSTAR Program

The Texas LoanSTAR (Saving Taxes and Resources) Revolving Loan Program provides low-interest loans to assist Texas public institutions by financing their energy-related, cost-reduction retrofit projects. Loan recipients may be cities, counties, independent school districts, state agencies, public institutions of higher education and tax-supported public hospital districts.

All loan disbursements are on a reimbursement basis. Borrowers repay the loans through the stream of energy cost savings realized from the retrofitting.

For more information, visit the LoanSTAR Program webpage.

Recent Changes to the LoanSTAR Program

  • Application Process

    Applications will now be reviewed on a first-come, first-served basis during the open enrollment period.

  • Payback Period

    The composite simple payback period for heating, ventilation and cooling (HVAC) projects has been extended from 10 to 15 years. All projects with an HVAC Utility Cost Reduction Measure (UCRM) cost equal to or greater than 50 percent of the total project cost may have a composite simple payback period of up to 15 years.

  • Funding Sources

    LoanSTAR loans are available from its general fund at an annual rate of 2 percent or from its repaid ARRA fund at an annual rate of 1 percent. The application and technical guidelines are the same; however, ARRA-funded loans require additional reporting documentation during the term of the loan.

Solicitation Details

  • Maximum loan size per application: $8 million
  • Maximum number of loans for this solicitation: three per applicant
  • Loan interest rate: 2 percent annually (1 percent for ARRA funds)

Applications will be reviewed on a first-come, first-served basis.

Schedule
Key Deadlines Date
Issuance Oct. 6, 2017
Application Submission Open enrollment through Aug. 31, 2018 – 2 p.m. CT
Contract Execution As soon as practicable

Questions

For questions regarding this RFA, email Eddy Trevino or call him at 512-463-1876.