BOULDER, Colo. – Elevations CU will be managing a new loan being offered by Boulder County to fund energy efficiency projects for residences.
The EnergySmart loans will be backed by a reserve fund set up with money awarded to Boulder County in 2010 by the U.S. Department of Energy to increase building efficiency.
The $8 million reserve will be set aside to cover losses if program participants default on their loans. The reserve fund – which will cover up to 20% of the loans given by Elevations – also will help keep interest rates relatively low.
Interest rates for a homeowner with a credit rating of 700, for example, probably will be in the neighborhood of 3% for a three-year loan, while a homeowner with a credit rating of 600 would get an interest rate closer to 4.9%, according to preliminary county plans.
The loans are expected to be launched next spring.
