Energy Resources Conservation (ERC) Loans

Loan Application

Petit Jean 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 Petit Jean Electric 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 five years to repay the loan. Certain requirements apply, so be sure to contact us before buying your new equipment.

Application
ERC loan applications are available at your local Petit Jean Electric Cooperative office. All requested information must be completed in full. If married, 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. Along with your application, 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 completed application and other documents will be submitted to our loan committee for consideration. You will be contacted as soon as possible regarding the approval of your loan, usually within a week. 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 issued. 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 the 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, Petit Jean 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.

All loan applications and applicants must meet the following requirements.

Loan Requirements In Brief
1. The applicant must be a member of Petit Jean Electric Cooperative.

2. The structure must pass an energy audit by a qualified Petit Jean Electric employee.

3. Petit Jean Electric will finance the installation of heat pumps and related materials that meet the following criteria:
   a. Heat Pumps
      i. Must be new
      ii. Must have an HSPF rating of 7.0 or more
      iii. Must have a SEER rating of 13.0 or more
   b. Weatherization Material
      i. Insulation
         1. Walls: R-13
         2. Ceilings: R-38
         3. Floors (crawl space): R-19
      ii. Storm windows or replacement windows with double glass
      iii. Storm doors or metal insulated door with weather-stripping
      iv. Must be well-sealed, insulated metal duct
      v. No flex duct

4. The member must meet the following criteria:
   a. Be gainfully employed or have other source(s) of sufficient income.
   b. Receive a satisfactory report from local credit bureau
   c. Have no more than 2 late payments on electric bills to Petit Jean Electric within the last 12 months.

5. Details of Loan:
   a. Loans are available on existing structures only.
   b. Loans are for materials and labor. If labor is provided by the consumer member,
       the ERC Loan will be limited to the financing of materials only.
   c. ERC Loans in residential structures will not exceed $3,000 for a single family dwelling, $4,000 for structures
       with two through four residential units, and $1,000 per unit for larger multi-family structures.
       The amount may exceed these guidelines in the case of heat pumps, central heating and air, and/or water heaters.
   d. ERC Loans up to a maximum of $10,000 must be approved by a Credit Committee composed of three
       Petit Jean Board of Directors. ERC Loans in excess of $10,000 must be approved by the cooperative's full Board of Directors.
   e. If a contractor is utilized, the contractor must be on the approved contractor list,
       having satisfactorily met bonding, insurance, and other requirements set by the Board of Directors.
   f. Loan funds will not be advanced to the consumer or contractor until all work has been satisfactorily performed.
   g. The existing structure is mortgaged to Petit Jean Electric to secure the loan (no third mortgages accepted).
   h. A $50.00 filing fee is due upon finalization of the loan.
   i. The ERC Loan is set at 5% interest.
   j. The ERC Loan is for a maximum period of 5 years.

Dealers/Contractors
You may select the dealer of your choice, but they must be licensed with the State of Arkansas. Petit Jean Electric Cooperative will provide a list of these dealers upon request. If you decide to take bids, it is not necessary for you to accept the lowest bid in order to qualify for a loan.

Should you have any additional questions, please do not hesitate to contact your local Petit Jean Electric office at 501-745-2493 (Clinton) or 870-448-3477 (Marshall), or just stop by and visit with us.