smud.org
 

Rebates & Incentives: Loans

Presently, the maximum amount for Commercial or multi-family loan requests is $10,000.  However, higher amounts may be evaluated on a case-by-case basis.

Borrower eligibility criteria

  1. Generally, the applicant must be the vested owner of the property where the product(s) are installed. The ownership vesting requirement includes multifamily complexes of five (5) or more units that are individually metered and billed under one of SMUD's residential electric rates. However, SMUD may make loans to business tenants (not multifamily) who are responsible for the electric account on their portion of the property.
  2. The applicant must receive a loan approval from SMUD prior to installation of any product(s). SMUD will not finance previously installed products.
  3. The installation property must have an active, connected electric account with SMUD.
  4. The SMUD accounts of all applicants must have satisfactory payment records. SMUD will also obtain consumer and/or business credit reports to help determine the creditworthiness of the applicant's business, its principal(s) and its guarantor(s).
  5. To properly evaluate the applicant's ability to repay, the information required with an application will vary based upon the form of business organization, and the requested loan amount.

Eligible equipment

  1. Currently, eligible equipment includes: lighting, heating and air-conditioning systems (provided they meet SMUD's minimum efficiency standards), refrigeration systems, and process equipment.
  2. Measures must be installed by a licensed electrical (C-10) and/or HVAC (C-20) contractor from SMUD's list of Participating Contractors, unless the applicant business or employee of applicant business is to self-install.

Loan terms and conditions

  1. SMUD offers secured financing at a fixed interest rate of 8.75%.
  2. A loan application fee of $200 will be charged for all loans. SMUD will return this fee if we decline the application.
  3. Loan maturities are the lesser of: (a) the remaining term of any senior lien; (b) 6 months less than the remaining term on the property lease agreement (for tenants); or (c) maximum of 10 years. Any exceptions require SMUD's prior approval.
  4. Upon SMUD's approval, the loan commitment is valid for 180 days. Within this 180-day period, the product(s) must be installed and SMUD notified of the installation's completion.
  5.  All loans will be secured by a UCC1 Financing Statement fixture filing with the County Recorder.
  6. SMUD pays loan proceeds directly to the contractor.
  7. SMUD will prepare loan documents for signature immediately upon approval of the financing.

Contact information

Program information

Call SMUD's Commercial Contact Center at
1-877-622-7683

For questions regarding:

  • Program eligibility.
  • Product eligibility guidelines.
  • Contractor issues.
  • Installation process.
  • Request for a list of participating contractors.
  • Inspections.
  • General energy efficiency questions.

Financial Services

Call 916-732-5472, for questions regarding:

  • Loan application process.
  • Documents required with the Application for Financing.
  • Loan or payment terms.
  • Fees.
  • Collateral

 

Back to Top