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The program provides loans at below-market rates to qualifying organizations that are working to make alternative energy sources available.
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Mississippi
Energy Investment Loan Program
The Mississippi Development Authority (MDA), an LMOP State Partner, offers a variety of programs intended to support existing Mississippi businesses and encourage the establishment of new businesses. The Energy Investment Loan program provides loans at below-market rates to qualifying organizations that are working to either make their energy consumption more efficient or make alternative energy sources available (e.g., landfill gas).
The Energy Investment Loan Program is managed by MDA’s Energy Division. The program is part of the Energy Division’s larger goal of encouraging projects that enhance the state’s access to energy resources (and thereby benefit Mississippi’s economy).
The Loan Program is open to corporations, partnerships, hospitals (public and private “non-profit”), institutions of higher learning, community colleges, schools (public or private), and local government entities that are designing, developing, or installing certain kinds of energy-related equipment for use in Mississippi. The project must promote the development and demonstration of efficient, environmentally acceptable and commercially feasible technology and processes, and must also utilize Mississippi's existing energy resources, public utilities and/or developing resources to foster economic growth.
Funding is available for two categories of projects, as described below:
Retrofit Projects—Improvements made to a building or modifications to equipment not used in a manufacturing process that will reduce utility costs or allow for the use of an alternative energy source. Examples of such projects include:
- Heating and cooling systems
- Lighting fixtures
- Insulation
- Cogeneration systems
- Furnaces, burners, boilers, waste recovery systems, ignition systems
- Automatic energy management control systems
Energy Efficient Processes—Includes the implementation of equipment that enhances the efficiency of any industrial process by reducing energy consumption or allowing for the use of alternative energy sources. Examples of such projects include:
- Kilns
- Boilers - natural gas or wood
- Billet ovens
- Optimizing saws
- Refrigeration systems
- Variable steam and hydraulic equipment
The program offers loans between $15,000 and $300,000 for up to seven years at a rate of three percent below the prime interest rate prevailing at the time the loan is issued. The borrower will be responsible for providing the Mississippi Development Authority with a one percent closing/servicing fee. The loan must be secured by a lien or liens on either the facilities to be installed and/or other unencumbered business assets, personal guarantees, surety bonds, or some combination of the above. Any individual owning 20 percent or more of a business obtaining a loan under this program must offer a personal guarantee for the loan.
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