Gov. Schwarzenegger Announces Loan Applications for Clean Energy Business Financing Program Available


California Clean Energy Manufacturers Will Receive $30 million
The California Energy Commission today released the applications for the Clean Energy Business Financing Program (CEBFP), making available more than $30 million in low-interest loans to eligible California clean energy manufacturing businesses. The CEBFP will use American Recovery and Reinvestment Act (Recovery Act), State Energy Program (SEP) funds for 2.75 percent interest rate loans to private companies to reduce energy use, increase renewable energy generation, and create and retain California jobs.

“These loans for small business clean energy manufacturers will create jobs and upgrade our aging infrastructure,” said Governor Schwarzenegger.  “California is paving the way for a new economic foundation for the 21st century, showing once again that what benefits the environment can also benefit the economy.”

Loans to qualifying applicants will range from $50,000 to a maximum of $5 million and may be used to expand or retool existing facilities for the manufacturing of eligible energy efficiency or renewable energy products, components, systems and technologies. Loan funds are also available to successful applicants for projects generating either new production or expanded production of biomethane gas from biomass that is direct-injected into natural gas transmission lines.

“What these clean energy entrepreneurs require is affordable capital – private and public funding that keeps jobs and manufacturing in California and strengthens the state’s economy,” said California Energy Commission Chairman Karen Douglas. “These low interest loans will help manufacturers to produce their renewable or energy-efficient products, benefiting Californians and recouping some of our state’s lost manufacturing jobs.”

The Energy Commission is working with the California Business, Transportation and Housing Agency, and four Financial Development Corporations (FDCs) located statewide to evaluate applicants’ financial qualifications and manage the loans. The participating FDCs are Pacific Coast Regional Small Business Development Corporation and San Fernando Valley Small Business Financial Development Corporation in Southern California, State Assistance Fund for Enterprise, Business and Industrial Development Corporation (SAFE-BIDCO) in Northern California and Valley Small Business Development Corporation in San Joaquin Valley.

Successful applicants will meet program requirements as well as lending qualifications. Projects must demonstrate program success, leverage other project funds, demonstrate profitability and show California job creation and/or retention.

To be considered for review, all applicants must submit their completed applications to just one Financial Development Corporation (FDC) by 5 p.m. May 6th, 2010.

The CEBFP Announcement, Application, Application Instructions and participating FDC are available on the Energy Commission www.energy.ca.gov/recovery/cleanenergy.html.

Governor Schwarzenegger created the California Recovery Task Force to track the American Recovery and Reinvestment Act funding coming into the state; work with President Barack Obama’s administration; help cities, counties, non-profits, and others access the available funding; ensure that the funding funneled through the state is spent efficiently and effectively; and maintain a Web site (www.recovery.ca.gov) that is frequently and thoroughly updated for Californians to be able to track the stimulus dollars.

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