The Business Development section of Community Planning and Economic Development (CPED), administers a variety of small business assistance tools available for Minneapolis business owners. Among the tools available to business owners are two Energy Efficiency low-interest loan programs Trillion BTU and Energy Efficiency Revolving Loan Program. Staff plan to bring recommendations to the City Council Community Development and Regulatory Services committee regarding program guidelines for these two programs on May 13, 2014. Please contact Becky Shaw at 612-673-5066 or [email protected] with any comments or questions.
Trillion BTU is an energy conservation program targeted at large-scale investments that will reduce energy output and implement conservation methods throughout Xcel Energy¹s Service territory. Trillion BTU offers loans of up to $1 million for energy improvements to commercial/industrial buildings. Trillion BTU is a revolving loan program with initial capital provided by the State of Minnesota and administered by the St. Paul Port Authority, with the understanding that loans will be made throughout the metro. Local governments are expected to participate in the loans. The attached program guidelines contemplate City of Minneapolis participation for Minneapolis projects of up to $150,000 at 4% interest.
Energy Efficiency Revolving Loan Program
For smaller scale commercial energy investments, the City in 2010 developed the Energy Efficiency Revolving Loan Program, using a grant from the Department of Energy. Eligible investments include HVAC retrofits, refrigeration equipment upgrades, lighting systems replacements, and other energy improvements. Sixteen projects were funded through this program, and now repayments are available for re-lending to additional businesses. Now that demand has been established for these types of investments, City staff recommend modifying the program guidelines adopted in 2010 to eliminate a partial forgiveness component and increase the interest rate from 0 to 3.9%. These changes are recommended to ensure that funds continue to be recirculated for use by other businesses in the future.
Again, staff plans to bring a report to the City Council Community Development and Regulatory Services committee recommending adoption of program guidelines for these two programs on May 13, 2014. If you would like more information about the program and the changes we are recommending please contact Becky Shaw, CPED Senior Economic Development Specialist at 612-673-5066, or [email protected]