State offers loans to help businesses save energy

By Tony Reid

Herald & Review, Decatur, IL

Published Thursday, July 17, 2008

DECATUR - Businesses chasing the green now have a new incentive to save some money and help the environment at the same time: low interest Green Energy loans. 

The loan program is a new initiative from the office of Illinois State Treasurer Alexi Giannoulias.

He came to Decatur on Wednesday and stood in the shadow of the Lincoln statue in Lincoln Square to explain the project. As the mercury edged toward 90 degrees, Giannoulias said Green Energy loans is a one-year pilot program aimed at encouraging businesses to switch to solar, wind and other renewable types of energy. He said the loans would save companies money and help the battle to cut global warming.

Loans would be available in amounts ranging from $10,000 to $10 million at interest rates that, today, work out at about 5 percent. The loan program also is open to local government and nonprofit organizations, and all loan participants will be vetted to make sure their project meets Green Energy criteria.

News of the loans comes in the wake of a grant program from the Ameren Illinois utilities -- AmerenIP, AmerenCIPS and AmerenCILCO -- to offer cash incentives of up to $100,000 for businesses to install energy-efficient lighting, heating and cooling systems and similar green upgrades.

Giannoulias said the incentives and loans complemented each other, and his program would work alongside Ameren.

"Their rebates will certainly help, but in many instances, they won't cover enough of the needed costs," he added. "That is where we come in."

Asked if the nation's stalling economy might dampen business enthusiasm on taking on more debt, however discounted, Giannoulias was upbeat.

"No, it's an ideal time," he said. "With the sky-rocketing costs of gas and energy, here's your chance to really save money over the long-term."

The loan program works by the treasurer's office depositing state funds with participating local banks that actually make the discount-rate loans. Several Decatur bankers were there Wednesday to show their support, including Regions Executive Vice President Tim Hill. He said the loan program wouldn't make every project doable, but it was another reason for companies to consider taking action.

"It's an incentive," he added. "It's an incentive that sends things in the right direction."