|CONTRACTOR PROGRAM|| |
|Are Energy Evaluations Required:||Yes – must be included with the loan application|
|Contractor Program:||Contractors, energy service providers, consultants, engineers, and auditors serve as the “engine” of AlabamaSAVES™. This expertise must be unleashed in a trustworthy and transparent manner. To participate in projects funded by the Program, service providers must:|
- document proof of proper qualifications and licenses,
- participate in a Program orientation, and
- submit to ongoing reporting and quality assurance standards.
The Program may charge a fee to cover the costs of review of the qualifications and performance of each service provider.
Service providers that meet the eligible requirements and have been approved by the program administrator will be available to perform services and will be highlighted on the AlabamaSAVES™ website.
Results of each project funded in whole or in part by the Program will be measured to encourage successful outcomes and provide full circle feedback. The project performance for each vendor also will be available on the AlabamaSAVES™ website.
- Notably, AlabamaSAVES™ will be targeting industrial businesses whose current cash flow situation will be improved significantly by a deep retrofit. It aims to find customers that can improve their net operating income sufficiently to grow their business.
- AlabamaSAVES will allow deep whole-building retrofits by providing loans up to $4 million.
- Educating the lending community on the benefit and security achieved by completing the property improvements.
- Minimizing the costs associated with the origination process while securing credit and valuation qualifications. Options to overcome this may include (1) partnering with a lending institution that will offer the Program as a “piggy-back” loan, (2) using the existing underwriting and valuation information from a recent refinance or purchase of the property, and (3) targeting borrowers that are willing and able to use personal guarantees as loan security.
- The ideal structure for the borrower is an extended term to maximize cash flow positive outcomes over the life of improvement. This structure, however, is at odds with the desired financial instrument of the lending community who typically prefer a shorter term and adjustable rate. ADECA’s intention is to balance the difference by offering a slightly longer term and fixed rate.