The Nebraska Energy Quarterly features questions asked about 5% Dollar and Energy Saving Loans.

Loan forms may be obtained from participating lenders or the Energy Office, or the agency's web site by clicking here.

Loans as of June 30, 2002: 19,773 for $153.7 million

Questions and Answers...

5% Dollar and Energy Saving Loans

If you already have made energy saving improvements in your home or building, may you still apply for a Dollar and Energy Saving Loan?

No. Dollar and Energy Saving Loans are meant to provide an incentive to the home or business owner contemplating energy saving improvements. The low-interest loan is designed to offset the additional investment the owner may have to make to meet the higher standards required for a loan, thus encouraging that option versus a less expensive but less efficient one.

What is the current interest rate for Dollar and Energy Saving Loans?

The current rate is 5 percent. However, the actual Annual Percentage Rate, or APR, of a particular loan will vary depending on whether certain loan fees allowed under the program are included. These fees are treated as finance charges when the lender computes and discloses the Annual Percentage Rate to customers. A borrower should check with their lender for the actual APR.

Where can you get a list of participating lenders?

The Energy Office encourages you to check with your present lenders first, to see if they offer Dollar and Energy Saving Loans. If they do not, you may check with the Energy Office for area lenders who offer the loans. Some participating lenders will accept loan applications from both present customers as well as non-customers. Some lenders will accept applications from current customers only.

If you are seeking a Dollar and Energy Saving Loan to install a new heating system which uses corn, wood, or other form of biomass energy, may you keep your existing system as a back up unit?

You must either:

• remove your old system entirely or,
• you will need to replace the old system with a unit which meets the minimum standards of the program, and install it along with your new biomass-based system.

Biomass heating systems require an energy audit to determine eligibility for a loan. Another option would be to assess the building's envelope to see if other energy saving improvements would eliminate the need for a back up heating system.

Are political subdivisions eligible for Dollar and Energy Saving Loans?

Yes. Any Nebraska political subdivision, except public school districts and state government, is eligible to borrow up to $175,000 for qualifying energy efficient improvements.

What are the particulars — length and monthly payment — for a Dollar and Energy Saving Loan?

Dollar and Energy Saving Loans must be written by the lender for more than one year, but no longer than ten years for most improvements — those listed on Forms 1, 2, 3 and 4. Monthly payments must be at least $50, or $25 on replacement appliances. The actual length of the loan is up to the lender.

Are you required to make a down payment?

No. Lenders must make a loan for 100 percent of the eligible project cost, unless the borrower requests a smaller loan.

Are lenders required to make a Dollar and Energy Saving Loan?

If the lender is not comfortable making a 100 percent loan, then they are not required to make the loan. Some lenders may not be willing to make a loan if the borrower is not their customer. If a lender declines to make a loan, the borrower should contact other participating lenders.

How long does it take to process a Dollar and Energy Saving Loan?

Once an application is received by the Energy Office, and if funds are available and the application is complete, a loan is processed and generally approved within four working days. If the application is incomplete, the Energy Office's review will take longer. The length of time is dependent upon how quickly the missing information is received.