The Tennessee Department of Economic and Community Development today announced a new $50 million energy efficiency loan program to help Tennessee businesses finance the purchase of energy-efficient technology, energy retrofits and renewable energy systems.

"Our goal is to make Tennessee a true leader in sustainability, and this new Energy Efficiency Loan Program will be a substantial step in that direction," said Gov. Phil Bredesen in a statement. "By providing access to this type of financing, we are making Tennessee businesses more competitive, and that means more jobs for Tennesseans."

The loans, which will be administered by Pathway Lending, will offer 5 percent loans for up to 10 years to finance up to 100 percent of the costs of energy projects. The rate on the loans is lower and their term longer than what building owners could secure from manufacturers' financing arms.

Other partners in the project are the U.S. Department of Energy, the U.S. Economic Development Administration, Pinnacle Financial Partners and the Tennessee Valley Authority.

Rick Frazier, vice president of marketing services at Alex S. Palmer, said the program will provide "a mutual benefit" to property owners looking to upgrade their buildings and balance the "almost monthly" TVA rate increases as well as to utility officials who want to get a better handle on managing their peak loads.

"Property owners have quite a bit to gain," said Frazier, whose team has identified a number of properties that would qualify for Pathway's loans. "I could see a 20- to 30-percent reduction in the connected load," the energy demand that would come if all parts of a building system were using electricity at the same time.

Application information is available at this link. First round applications are due by Nov. 1.