programs SECO

Notice of Loan Fund Availability — LoanSTAR Program

Loan Documents: RFA-BE-G27-2024

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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.

Solicitation Details

  • Maximum loan size per application: $6 million
    • For loans funded with repaid ARRA funds, the minimum loan size is $3 million.
  • Maximum number of loans for this solicitation: one per applicant
  • Loan interest rate: 2.5 percent annually (1.5 percent for ARRA funds)
  • 15-year maximum loan term
  • Borrower must own and occupy the facility where the proposed retrofit project will occur.
  • HVAC saving degradation rate of 0.75% annually

Funding Sources

LoanSTAR loans are available from its general fund at an annual rate of 2.5 percent or from its repaid ARRA fund at an annual rate of 1.5 percent. The application and technical guidelines are the same; however, ARRA-funded loans require additional reporting documentation during the term of the loan.

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

Schedule
Key Deadlines Date
Issuance Dec. 22, 2023
Application Submission Open enrollment through Aug. 30, 2024 – 2 p.m. CT
Contract Execution As soon as practicable

Questions

For questions regarding this RFA, email John Kyere.