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Sustainable Energy Fund (SEF ), a private, nonprofit, financial organization, offers commercial loans for new or retrofit energy-related projects to established commercial, industrial, municipal, and nonprofit entities.   Our geographic focus is eastern and central Pennsylvania, but we can finance projects anywhere in PA, and certain projects in the eastern PJM grid territory (PA, NJ, DE, MD). Currently, SEF does not fund energy projects in other US states or other countries.

Types of energy-related projects can include building envelope improvements (e.g. windows, doors, insulation), lighting systems and lighting controls, energy control systems, power factor improvements, motors, HVAC, geothermal, renewable energy systems, and more.  As long as the project (a) reduces energy consumption, (b) replaces a “dirty” fossil fuel with a clean (or cleaner) energy source, or (c) produces clean energy (e.g. from renewable sources), then SEF will consider financing the project.  SEF does require that the energy savings or energy production be documented as a condition of the loan.

SEF will also consider funding or co-funding the energy-portion of a new building construction or a building remodeling project.  We are especially interested in LEED-certified green building projects.

Minimum loan amount is $10,000; the maximum loan amount is $1,000,000.  Loan rates are very competitive with commercial banks.  We are also more flexible in loan collateral requirements.

Unlike a traditional commercial bank, SEF can be very creative in structuring our loan financing solutions to meet the unique requirements of each customer, and tailored to each project. For example:

·           SEF will finance 100% of your entire project, and no out-of-pocket payments are required from you during the construction phase of the project.

·           No loan payment is required until several months after the project is completed.  By that time the energy savings from the project show up in your utility bills, freeing-up cash from your operating budget to use for the loan payments.  Instead of giving your hard-earned cash to the utility company, use it to upgrade and improve your building!

·           Loan payments are custom-sized for each project to be less than the monthly energy savings, thus there is no increase to your existing operating budget, and in many cases, a net positive cash flow.

·           Want to do your energy project now, but won’t have the funds until sometime later?  No problem.  SEF can structure the deal to fit your current and future cash flow needs – including extended     no-payment periods, interest-only payments for a year or more, short-term bridge loans, etc.

·           Unlike many commercial banks, there never is a prepayment penalty with any SEF loans.  Banks generally will require a prepayment penalty on fixed-rate loans to generate income in the event you prepay your loan.  By contrast, SEF wants to help you implement your energy project now.  Use our funds for as long as you need, then prepay your loan whenever you want with no penalty.

·           SEF will accept a lower lien position on collateral than most banks.

·           For large projects, many banks do not want to finance the last 10-20% of a project. By contrast, SEF can provide that final gap financing piece to make your project happen.

Another benefit of financing your energy project via SEF:  a portion of the proceeds from SEF loans are used to fund community service and energy educational programs such as SEF’s college-level Solar Scholars™ Program.

Interested in applying for financing?  Download an SEF loan application package (PDF).


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Frequently Asked Questions (FAQ)