LoanSTAR Repaid ARRA Funded Loans
The LoanSTAR program has two available funding sources. Loans are available from the LoanSTAR general fund at a rate of 2% per annum or from the LoanSTAR repaid ARRA fund at a rate of 1% per annum. The application and technical guidelines are the same, however, ARRA funded loans require additional reporting documentation through the term of the loan.
Background on Repaid ARRA LoanSTAR Funds
The American Recovery and Reinvestment Act of 2009 (ARRA), an economic stimulus package enacted by the 111th United States Congress, was signed into law by President Barack Obama on February 17, 2009.
The SECO received State Energy Program ARRA funds to support multiple programs. One of the programs administered by SECO was the Building Efficiency and Retrofit Program (BERP), a loan program. The purpose of this loan program was to increase the energy efficiency and reduce energy consumption in public sector buildings and other facilities statewide.
When the borrower repaid the BERP loans to SECO, funds became part of the LoanSTAR revolving loan program. These funds are categorized as "repaid ARRA" funds and are available to new borrowers through the LoanSTAR program. Repaid ARRA funds are generally offered at a discounted rate to the borrower because of the additional documentation required for reimbursement.