The EAP is a LADWP sponsored program that offers no-cost energy efficiency technical and financial assistance to help small/medium business owners make smart energy choices. For small businesses that qualify for a U.S. SBA 504 Loan, the EAP provides no-cost technical assistance to help owners identify energy efficiency measures and apply for utility rebates. The EAP is designed to help small business owners optimize energy efficiency by purchasing or improving properties or investing in new equipment.
The SBA 504 Loan Program offers qualifying commercial and industrial small business borrowers up to $5.5 million to purchase fixed assets, such as real estate and equipment. It offers 10-20 year fixed loans at rates 1-2% below market, and is typically used to build, gut, or retrofit buildings that will house the businesses. The 504 loan is a popular loan which covers 40% of a project’s total cost, with a primary bank providing 50% and the owner contributing 10%.
The EAP will use the SBA’s definition of a small business. As a result, many medium sized businesses qualify as a small business under the SBA definition:
EAP offers no-cost technical and financial services to qualifying small business customers throughout the entire process to make participation easy for participating customers. These services include:
There are significant benefits for borrowers to improve efficiency when participating in the EAP and SBA 504 loan programs. First, small/medium business owners who can demonstrate that they are improving a base building’s energy performance 10% or more become eligible to increase their borrowing cap from $5 million to $5.5 million per project. Secondly, their utility incentive commitments can be used towards their 10% cash required for closing. Finally, by reducing on-going operating costs and increasing monthly cash flow, owners may be seen as less risky and therefore more likely obtain needed capital.
The EAP offers an opportunity for small/medium business customers to include deeper energy efficiency measures into their loans that may be cash flow positive right away, at below market interest rates, for 10-20 years.
Participating in EAP is as easy as 1, 2, 3! These three easy steps include:
Many LADWP small and medium business customers qualify for the EAP. Eligibility requirements for these customers include:
The following are examples of typical eligible energy efficiency measures.
Examples of typical ineligible measures include, but may not be limited to:
Renewable projects can be financed through the SBA 504 Loan Program, along with qualifying energy efficiency projects. However, technical assistance under the EAP will be limited to energy efficiency projects.
For additional information on renewable rebates, please refer to LADWP program information at www.ladwp.com or contact your electric utility.
The EAP technical team is here to help you throughout the process; from identification of energy efficiency measures through the utility rebate application. We want your efficiency program to succeed. The following services are provided at no-cost to you:
Yes, a customer may choose their own auditor or energy consultant. The EAP team can work with those consultants to provide peer review, cash flow analysis, and to ensure that projects are optimizing available rebates and incentives and complying with program requirements.
You may use your own energy audit report under the following conditions:
Yes. The EAP team will conduct a review of your planned efficiency measures and provide the final approval to move forward with your identified energy efficiency measures before assisting you with the rebate application process.
Yes. Once energy efficiency measures have been identified in the energy audit, you should provide the contractor’s information to the EAP team. All contractors must be licensed, insured and follow applicable permitting regulations, per the requirements of the State of California.
Our team of technical professionals will assist you through the process from identification of efficiency measures until you receive your approved rebate. Your designated representative will help guide you and help you understand the most effective measures for your project.