Notice of Loan Fund Availability — LoanSTAR Program

Loan Documents: RFA-BE-G29-2025

LoanSTAR Program

The Texas LoanSTAR (Saving Taxes and Resources) Revolving Loan Program provides low-interest loans to assist Texas public institutions finance 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 State Energy Program (SEP) funds.
For loans funded with repaid American Reinvestment and Recovery Act (ARRA) funds: maximum loan is $8 million; the minimum loan is $3 million.
Maximum number of loans for this solicitation: one per applicant for SEP funds; two per applicant for ARRA funds.
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 percent 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	Feb. 24, 2025
Application Submission	Open enrollment through Aug. 31, 2025, 2 p.m. CDT
Contract Execution	As soon as practicable.

Questions

For questions regarding this RFA, email Adam Mueller.

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