Loans

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 AEC provides members the opportunity to apply for low interest (7.5%) loans to enable them to finance energy efficient retrofits.

 

loan_approvedLoans May Be Made For:

    • High efficiency electric heating and cooling systems

    • Ceiling, wall and floor insulation

    • Storm or replacement windows

    • Caulking, weather stripping and other infiltration controls

    • Attic ventilation systems

 

Structural Loan Requirements

  • Loan proceeds must be used for permanent residences and/or commercial businesses occupied during the entire calendar year.

  • Loan proceeds may not be used for rental property except and unless the loan is carried by the owner and a first mortgage of the property is available as collateral or an equally valued property or monetary account is used as collateral.

  • Only residents or businesses on permanent foundations are eligible for lending.  (Loans will not be made on mobile homes both single wide or double wide unless axles & wheels have been removed and the structure is permanently attached to a non-movable foundation.)

  • Loans will be made for retrofit of existing structures or additions to existing structures only.

 

Borrower Requirements (One of the Following)

  • Borrower must own sufficient equity in the home or business to fully indemnify the amount of the loan, or

  • Borrower must own a separate parcel of land or homesite on which a first mortgage may be obtained, or

  • Borrower must have sufficient cash savings & be willing to purchase a long term certificate of deposit co-signed by an executive officer of Alfalfa Electric in the amount of the loan, to expire not before the final installment of the ERC loan.  All interest earned with the CD during the tenure of the loan will remain with the borrower, or

  • Borrower may obtain an irrevocable letter of credit (fee for such absorbed by borrower) from an accredited lending institution such as a bank or employee credit union.  Said letter of credit will fully indemnify any outstanding dollar amounts of the ERC loan, or

  • If none of the above requirements can be satisfied.  Board approval must be sought, regardless of the loan amount.

 

Loan Limits

  • Minimum ERC loan will be $2500.00--All loans of $2500 up to $4000 must be repaid in equal monthly installments within a period of five years or less.

  • Maximum ERC loan will be $10,000.00--Loans in excess of $4000 may be carried for a term up to but not exceeding seven years.

 

Submittals

  • All loan requests must be accompanied by a final contractor bid for such work to be done.

  • Any other legal documents required by Alfalfa Electric Cooperative to complete lending procedure

    For more information, please read
    "Energy Resources Conservation Loan"