0% Green Business Loan Scheme
Investing in energy efficient equipment makes sound business and environmental sense, especially with the easy, affordable and flexible 0% green business loan scheme offered by the Department of Economic Development for Isle of Man businesses.
The scheme has been designed to provide flexible financing options to all types of organisations seeking to make their operations more efficient and lower their energy costs. The scheme offers a loan of 100% towards the cost of projects that improve energy efficiency and can be arranged from £1,000 up to a maximum level of assistance of £20,000 per project. New, more efficient equipment should lower energy bills and with payments calculated so that they can be offset by the anticipated energy savings, the financing option is designed to pay for itself.
Green Business Loan Scheme statistics
The first year’s operation of the Green Business loan scheme has resulted in the Department receiving 30 enquiries, not all of which have led to an application.
A summary of Green Business loan applications for the 12 month period to March 2013 is
|No of Applications received||12|
|No of approved loans||7|
|Total value of loans approved||£80,420.71|
|Total annual energy consumption saving||152.17 MWhr|
|Total annual financial savings on energy consumption||£41,735.00|
|Total annual CO2 savings||101.2 tonnes|
Type of projects covered
Suitable projects for the scheme include lighting/lighting controls, compressed air systems/controls, variable speed drives/motors, heating/heating controls, insulation upgrades, heat recovery, pipe insulation and solar thermal systems. The repayment period for the loan is up to a maximum of 4 years with equal repayments due annually at the end of each year.
How assistance is assessed
The Department of Economic Development may provide assistance to an eligible business where, in its opinion, the eligible business undertakes an economic activity in the Island. Eligibility for the 0% green business loan scheme is open for all business sectors and where projects will involve energy efficiency improvements in Isle of Man business premises. The Department of Economic Development will only consider an application for a 0% green business loan that has not be submitted for funding from another Government financial scheme for the same project installation. Where installation of energy efficiency solutions are included as part of the loan the Department would require Manx Accredited Construction Contractors (MACC) scheme members to undertake the work.
The 0% green business loan scheme is at the discretion of the Department of Economic Development and each project will be assessed on its potential to deliver real energy savings with preference given to projects that provide the greatest reduction in CO2 emissions thereby assisting the Government in achieving its energy policies.
How to apply
In order to apply for a 0% green business loan, we require a completed Application for Financial Assistance – F101e form (available below) signed by a director/principal on behalf of the company and the necessary supporting documentation. Supporting documentation must include a thorough project report detailing expected energy savings, background information on the company and audited accounts for the last three years (unless a start-up venture, then 3 years forecasts must be provided).
Further detailed information on all aspects of the 0% Green Business Loan scheme can be obtained by contacting firstname.lastname@example.org or 01624 682367.
The Department may wish to take security on the assets of the company to protect any financial assistance provided. Assistance cannot be considered retrospectively for items of expenditure which have already been purchased. The applicant should be aware that the Department will require an annual report on the success of the project. The applicant should be aware that the details of all financial assistance paid out under the scheme will be published in an annual report prepared by the Department of Economic Development which will also be laid before Tynwald the Isle of Man’s Parliament.