State and Municipal Revolving Loan Funds
Posted in Innovative Financing , Low-Interest Loans
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The Energy Efficiency Conservation Block Grant (EECBG) Solution Center offers the following introduction to State and Municipal Revolving Loan Funds:
State and Municipal Revolving Loan Funds (RLFs) are funds of capital used to provide loans for energy efficiency and renewable energy improvements; loan repayments recapitalize the funding pool to enable additional lending. There are a number of entities that can administer revolving funds, such as third party lenders, but here we focus on government-sponsored and managed RLFs. Government-sponsored RLFs typically offer lower interest rates and/or more flexible terms than are available in commercial capital markets. These programs typically focus on financing the cost of efficiency upgrades such as appliances, lighting, insulation, and heating and cooling system upgrades.
