ERC Loans

North Arkansas Electric has low interest loans available to help you make energy efficient improvements to your home or business. By making these improvements, you can significantly reduce energy usage and lower your electricity bill. You may use these low interest loans to finance heat pumps and other energy improvements. To qualify, the heat pump must have a high efficiency rating and be sized according to NAEC design requirements.
 
Our low interest rate and monthly installment plan make your loan payments easier on your budget. With approved credit, you may borrow the money now to make improvements; then, take up to seven years to repay the loan. Certain requirements apply, so be sure to contact us before buying your new equipment.
 
LOAN PROGRAM

• Up to $10,000 for the purchase of a heat pump

With approved credit applications, above amounts will be loaned at 5% interest to install the heat pump and other weatherization items such as ductwork and storm doors and windows.

• Amounts in excess of above:  Additional funds will be loaned as follows: Seven-year fixed rate of 2.5% derived from the following information:  Either by adding 2.5% to the Federal Discount Rate, or 2% over the cooperative’s average cost of capital, whichever is greater, not to exceed 5% above the Federal Discount Rate.  This shall be the fixed interest rate for the term of the loan.

To qualify, the heat pump must be a complete system and have a SEER rating of at least 14 and an HSPF of 8.2.  Heat pumps must be sized according to North Arkansas Electric design requirements determined at the time of the energy audit.

DEALERS / CONTRACTORS
You may select the dealer of your choice, but they must be licensed with the State of Arkansas. Additionally we strongly recommend that the dealer you select have valid liability and workers compensation insurance.

APPLICATION
Credit applications are available at our Salem, Ash Flat and Mountain Home offices. All requested information must be completed in full. This will include the amount you want to borrow. If married, please complete both Sections A & B. All loans are considered joint. If the application is not signed, it will be returned to you for completion. No work that is to be paid for by loan funds should be done before the loan is approved.

Please include a copy of your warranty deed. A lien will be filed against the equipment that we are financing. We cannot process the application if you do not provide this information.

The application will be submitted to our loan committee for consideration. Approval will be determined within 24 hours of submitting your application. If and when your loan is approved, you will be mailed two letters informing you of approval, one of which you will need to give to your dealer.
 
PROCESSING LOAN DOCUMENTS
When your work is completed, please submit the invoices to our office within 24 hours, and the loan contract will be prepared for your signature. After closing, the check made out to you and your dealer jointly will be mailed to your address. A fee of $50.00 will be charged to you for filing UCC forms with the County Clerk and the Secretary of State.

NOTE: Cost of equipment and installation is to be negotiated between you and your contractor. It will be your responsibility for getting the invoices to us for processing.

Should you decide to refinance your loan with a financial institution, or borrow home improvement monies from them, North Arkansas Electric Cooperative may not be able to subordinate our lien to theirs. If you qualify for their loan, you may have to pay our loan in full to borrow more money from them. This loan is made for your benefit, and may not be assumed by any other party.

If you have any questions regarding ERC Loans, click here.