Focus on Energy accepts applications continuously for both small projects (having a total financed cost <$50,000) and large projects (where the total financed cost >$50,000). Upon receipt of an application, Focus on Energy conducts a review to determine the technical merit of the proposed project. After the technical approval is secured, the applicant is notified by email of the necessary steps required to secure the financing for the project. At the same time, the applicant’s designated lender is sent a packet of materials that includes a copy of the application, a technical opinion of the proposed project, the amount of the Focus on Energy loan funds approved, a lender Participation Agreement and other informational documents. Focus on Energy then works with the lender to structure a financing package that will include up to $500,000 of Focus on Energy loan funds and a matching (or greater) amount of lender funds. The Focus on Energy loan share of the funds will carry a zero percent interest rate with a loan term not to exceed 20 years. The lender’s share of the funds will be loaned at market interest rates for a term not less than that applied to the Focus on Energy loan funds.
The lender assumes responsibility for performing the due diligence associated with the financial qualification or credit worthiness of the applicant. Upon successful execution of the lender Participation Agreement, the Focus on Energy loan funds are transferred to the lender who combines them with its own funds and disburses the loan proceeds to the borrower. The lender services the entire loan package throughout its term and forwards repayments to Focus on Energy on a monthly basis.