Loan program assists efforts to go green State treasurer explains low-interest plan

By Joe Crawford

Journal-Star, Peoria, IL

Published Wednesday, July 15, 2008

PEORIA — Illinois State Treasurer Alexi Giannoulias stopped in Peoria on Tuesday to unveil a plan he hopes will encourage energy efficiency by offering low-interest loans to organizations short on the cash needed to go green.

Businesses, not-for-profit organizations and local governments will be eligible for the cheaper loans, Giannoulias said at a news conference in the Peoria NEXT Innovation Center.

The borrowers who take part in the "Green Energy" program will be required to spend the money on energy efficient or renewable energy equipment.

"These days everyone seems to want to go green, but the biggest barrier is the cost," the treasurer said.

The green projects must cost more than $10,000 to be eligible for the loans, which will be offered through participating lenders, including several Peoria banks.

Matt Mamer, vice president of business services at CEFCU Financial Center, said the interest rate CEFCU will offer through "Green Energy" should be about 5 percent, depending on the lender and other variables. Without the program, the rate would be closer to 7 percent, he said.

"This program provides a lower cost of funds we can pass directly to the businesses," Mamer said.

It shouldn't be difficult to spend the required $10,000 investment, said Joe Driscoll, co-owner of Midwest Green Energy in Peoria.

Converting to green energy is not cheap, even if it saves money in the long run, he said.

One of the smallest wind turbines he sells runs about $13,000, he said. A recent solar energy project Midwest Green Energy has been working on in Morton will cost the business owner between $18,000 and $20,000, and that's just for a few panels.

Driscoll said he hopes the treasurer's program will increase demand for green technology, adding to federal tax incentives and state rebates for environmentally sound investment.

"We're certainly optimistic, and we hope it's not the last we see from the state of Illinois," he said.

Giannoulias said the state would deposit the money for the loans at the participating financial institutions, allowing them to give the cheaper loans.

The treasurer's office is always investing - between $7 billion and $9 billion at any one time - and this is just another form of investment, he said.

State Sen. David Koehler, D-Peoria, said the new program is a smart way to help out Illinois businesses and simultaneously help the environment.

At a time when many are frustrated with state legislators' slow progress in settling on a budget, the "Green Energy" is a proactive program that will help Illinois businesses and consumers, he said.

"This is exactly what government should be doing," Koehler said.

Joe Crawford can be reached at 686-3251 or jcrawford@pjstar.com.