Bank helps cut back on energy

By Michael McCord
mmccord@seacoastonline.com

Complete Business Index

PORTSMOUTH - A local bank has joined forces with the state and utility companies to offer a loan program to small businesses seeking to become more energy efficient.

Ocean National Bank has created a $1.5 million loan portfolio for the renewable energy and energy efficiency business loan, a project announced by Gov. John Lynch in Concord on Monday.
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Danny O’Brien, president and chief executive officer of Ocean National Bank, said the loan program "is a win-win situation for New Hampshire businesses and the environment. (Businesses) can invest in the latest tools to improve efficiency of their operations, while at the same time making thoughtful choices about energy conservation that will improve the environment."

The program is being run in collaboration with the N.H. Business Resource Center. An energy audit by a utility is required as part of the application process.

Discount-rate loans of $10,000 and up will be available to companies for energy-saving projects that include energy-efficient lighting and heating, ventilating and air-conditioning systems; variable frequency; renewable energy sources; and premium efficiency motors.

"We often ask what we can do locally," O’Brien said. "This program can help small businesses cut down on operating costs and help them become more competitive in the global marketplace."

O’Brien said most businesses likely will not need any up-front money to initiate the energy-efficient changes - such as structural improvements and equipment purchases - because they will be covered by a state-mandated charge paid to utilities by consumers. Approximately 20 percent of the project cost will be paid in the form of a rebate from utilities to contractors.

In making the announcement, Lynch emphasized the need to economically deal with rising energy costs while reducing energy-related pollution.

"We must take every possible step to minimize the impact of high-energy costs on our state’s strong economy," Lynch said.

The loans made by Ocean National Bank will be at prime rate minus 1 percent and can be repaid over a maximum period of seven years. O’Brien said in many cases the cost of the loan will be paid back by the energy cost savings derived from the project.

"We hope this program will be wildly successful," O’Brien said of the first statewide project Ocean National Bank has taken part in. He believes it will draw applications from across all regions of the state.

The pool of dollars earmarked by utilities for rebates will be allocated on a first-come, first-served basis. Free energy efficiency reviews are available under the program and can be arranged through the Business Resource Center, to be completed by the utility company that services the business.