programs SECO

Notice of Loan Fund Availibility — LoanSTAR Program

Loan Documents: RFA-BE-G31-2025

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 per application for general funds.
    • $8.0 million per application for American Recovery and Reinvestment Act (ARRA) funds.
  • Maximum number of loans for this solicitation: two
    • When applying for one loan, entities may apply for one general-funded loan or one ARRA-funded loan.
    • When applying for two loans, entities may apply for one general-funded loan and one ARRA-funded loan, or entities may apply for two ARRA-funded loans.
  • 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.
  • Interest rate:
    • 2.5 percent (no minimum loan size) for general funds.
    • 1.5 percent for ARRA funds with a minimum loan size: $3.0 million.

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 Jan. 27, 2026
Application Submission Open enrollment through Aug. 31, 2026 2 p.m. CT
Contract Execution As soon as practical

Questions

For questions regarding this request for applications, email Adam Mueller.