Iowa Energy Saving Loans
Can you apply?
This grant is for commercial building owners and affordable multifamily housing owners who want to upgrade their buildings' energy efficiency. Eligible applicants include owners of commercial buildings and affordable multifamily buildings with 20+ units that participate in Section 8, Low Income Housing Tax Credit, and/or HOME programs. Applicants must conduct a majority of their business in Iowa. Projects must be recommended by a qualifying energy audit, be life-cycle cost effective, and address energy efficiency, occupant comfort, or air quality. The program operates on a rolling, open-enrollment basis until May 1, 2029, or until funds run out.
Program description
The Iowa Energy Saving Loan (ESL) Program is a revolving loan fund that helps Iowans save energy and improve building comfort by offering low-interest loans for building energy efficiency upgrades. The goal of the program is to support the Iowa Energy Plan pillar of promoting energy efficiency and conservation. The Program will assist building owners to make upgrades that lower energy usage, improve comfort, and improve air quality. The budget includes $ 5,462,028 available as loans for eligible projects. Rates will range from 0-2% interest with a 1% origination fee. Loans are available to owners of commercial buildings OR affordable multifamily buildings (20 or more units) who are active participants in Section 8, Low Income Housing Tax Credit, and/or HOME programs administered by the Iowa Finance Authority. Recipients must conduct a majority of their business in Iowa. The program will provide loans to eligible applicants on an open-enrollment basis. Loans provided must be fully amortized by the year in which the upgrades exceed their expected useful life, up to 7 years after the upgrades are completed. Loan funding is available for projects meet the following requirements: 1) each upgrade or retrofit is recommended in a qualifying energy audit completed for the building, 2) the project is life-cycle cost effective, 3) the project either reduces the energy intensity of the building or improves the control and management of energy use of the building during peak times, and 4) the project addresses at least one of the following: (a) the energy efficiency of the building, (b) the physical comfort of the building for occupants, or (c) the air quality of the building. Sample eligible project measures may include, but are not limited to: • Qualifying energy audits • Weatherization measures, such as replacement of weatherstripping • HVAC system upgrades or replacement • Building energy management systems The Iowa Energy Saving Loan program is funded by the Energy Efficiency Revolving Loan Fund (EE RLF) Capitalization Grant Program, established as part of the Infrastructure Investment and Jobs Act to provide capitalization grants to states to establish revolving loan funds. All grant awards made under this program shall comply with applicable laws including, but not limited to, 2 CFR Part 200 as amended by 2 CFR Part 910, IIJA Section 40501 and 40502, National Environmental Policy Act, Davis-Bacon Act, Section 106 of the National Historic Preservation Act (NHPA), and Build America, Buy America. Construction or purchase of equipment cannot occur ahead of award selection and federal requirement clearance. The ESL program will remain open to applications until May 1, 2029, or as long as funds remain available. Further program details and materials are provided on the Iowa EDA website at https://opportunityiowa.gov/community/energy/iowa-energy-saving-loan-program Questions may be directed to Molly Kiick, molly.kiick@iowaeda.com or (515) 348-6219.
Who can apply
Eligible applicants
How to apply
Application links
Required documents
- Completed loan application
- Qualifying energy audit
- Documentation of life-cycle cost analysis
- Proof of Iowa business operation
- For affordable housing: proof of Section 8, LIHTC, or HOME program participation
Program contact
- 👤 Molly Kiick
- 📧 molly.kiick@iowaeda.com
- 📞 (515) 348-6219
FAQ
Who can apply for an Iowa Energy Saving Loan?
Commercial building owners and affordable multifamily building owners (20+ units) in Section 8, LIHTC, or HOME programs. Applicants must conduct majority of business in Iowa.
What types of projects are eligible?
Energy audits, weatherization upgrades, HVAC system replacements, and building energy management systems. All projects must be life-cycle cost effective and recommended by a qualifying energy audit.
What are the loan terms?
Interest rates range from 0-2% with 1% origination fees. Loans are fully amortized within 7 years after project completion.
When is the deadline?
The program accepts applications on a rolling basis until May 1, 2029, or until funding is exhausted.
How much can I borrow?
The program has $5.46 million available. Individual loan amounts are not specified; contact the program for details.
💡 Tips for applicants
- Get a qualifying energy audit completed first. Your project must be recommended in an audit to qualify.
- Verify your building's life-cycle cost effectiveness before applying. Projects must demonstrate long-term cost savings.
- If operating affordable housing, confirm your building participates in Section 8, LIHTC, or HOME programs before applying.
- Ensure all business operations are conducted primarily in Iowa. Out-of-state operations may affect eligibility.
- Apply early if possible. Funding is limited to $5.46 million and runs until May 2029 on a first-come basis.
⚠️ Common mistakes
Submitting projects not recommended by a qualifying energy audit. Applying without confirming life-cycle cost effectiveness. For affordable housing, forgetting to verify participation in required federal housing programs.
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