Iowa Energy Bank Programs (Private and Public Funds)

Private Fund

The Iowa Economic Development Authority in partnership with the Iowa Area Development Group (IADG) is offering Iowa businesses and industries a low interest financing option for energy efficiency improvements, renewable energy projects and energy management and implementation plans. The establishment of the IADG Energy Bank Revolving Loan Fund is intended to provide an ongoing source of low interest financing for the implementation of cost effective projects that will save energy and money, improve facilities and processes and enhance job creation and profitability. Visit www.iadg.com/services/financial-assistance/iadg-energy-bank.aspx for more information.

To learn more:

Paritosh Kasotia
515.725.0434
paritosh.kasotia@iowa.gov

Bruce Nuzum
Energy Bank Program Officer for Assistance
800.888.4743
bnuzum@iadg.com

Public Fund

The state-sponsored low interest loan program is for public facilities. This public loan fund provides the capital necessary to implement cost-effective energy projects that will save money, improve buildings and enhance local economies. No upfront capital is needed and loans are repaid by using energy bill savings.

Eligible Applicants

  • K-12 Public Schools
  • Area Education Agencies
  • Cities
  • Counties
  • Community Colleges
  • Private Colleges and Universities
  • Regents Universities
  • Hospitals
  • State Agencies

Loan Terms

  • Loan amount determined by the project energy savings
  • As low as one percent interest
  • Two percent closing costs
  • One-quarter percent (.25%) of outstanding balance annual servicing costs
  • Up to 15 years

Eligible Projects

Loans must be used for energy improvements in or on buildings. Eligible projects must be physically located within the State of Iowa, have an energy savings simple payback within 15 years (exceptions with renewable energy projects), and have an up-to-date qualified energy analysis completed.

Generally, the following two categories of projects may be eligible:

  • Energy efficiency improvements
  • Renewable energy projects

Ineligible Projects and Costs

The following projects are NOT eligible for funding through this loan program:

  • Projects for any casino or other gambling establishment, aquarium, zoo, golf course, or swimming pool.
  • Projects that increase the energy load of a facility by adding new equipment, for example new lighting projects, or new pumping systems.
  • Cosmetic improvements to buildings such as wallboard/drywall and painting.
  • Funds for buying or leasing property.
  • Energy projects that are not cost effective.
  • Projects that fail to demonstrate a comprehensive energy approach.

Projects that lack sufficient details for a technical review to verify estimated energy and cost savings.

Reporting and Compliance Requirements

Federal reporting requirements apply. This includes:

  • Quarterly project progress reports
  • Davis-Bacon wage reports
  • Buy American
  • National Environmental Policy Review (if applicable)
  • National Historical Preservation Act (if applicable)

To learn more:

Paritosh Kasotia
515.725.0434
paritosh.kasotia@iowa.gov