|
Remember
when access to capital was generally
available for small to medium businesses?
Back in those days, like in 2007 and
earlier, businesses could go to their bank
with plans for expansion and using their
balance sheets to demonstrate growth,
receive funding that would help grow their
businesses and support new jobs.
It isn't news that both expansion plans and
balance sheets have taken a hit in the last
few years. As a recent
Bloomberg Business Week article points
out, banks have more funds available now but
qualified business customers are harder to
come by for loans aimed at business growth
opportunities.
For many of us, keeping the doors open and
preserving existing jobs is the name of the
game now. So how can we build stronger
businesses in this environment?
Energy efficiency
offers a very powerful way to do that when
0% interest access to capital allows for
investments that are well designed and
measured to insure savings.
 Energy
pros call this "energy optimization". We
think of it simply as "smart business."
Let's assume, for instance, that you can
calculate that investing in new lighting,
refrigeration upgrades and energy efficient
steamers for your restaurant will give you a
20% return on investment once they are paid
off. With On Bill Financing, businesses can
use utility financing
up to $100K for 5 years for
these improvements and the energy savings
pays all the costs over that period
while your energy bill remains the same. No
upfront capital is needed.
After the loan is paid,
that return on investment brings $20,000
each year through continued savings straight
to the bottom line. Think
about how much in expanded sales would be
needed to deliver that result!
Now think about how much it would mean if
every eligible California business did the
same thing. Millions of dollars of profits
would be recovered and returned to our local
economies. California would thus have a
very profitable demonstration of why our
state has invested so much towards building
a clean energy economy.
This GreenSheet speaks to the new programs
available that make that possible.
This issue isn't about one California
chamber or member as is usually the case.
We're very happy to say that
ALL California chambers and
members, either electric or gas utility
customers of
PG&E,
SCE,
SoCalGas or
SDG&E, are now eligible for an important
new source of access to capital.
Here is the new SCE
On Bill Financing (OBF), fact sheet from
one of the utilitiesabove but all offer very similar programs.
This explains the way it works very simply.
(Notice your business simply needs to be a 2
year customer in good standing to
participate.)
Here is the same
OBF info from SDG&E /SoCalGas which has
been the leading California utility offering
these loans since 2007. PG&E offers info on
their program
here and asks customers to call
1-800-468-4743. The
combined utilities recently offered
this presentation, which notes some
interesting examples, to help educate their
customers. Here is an interesting case
SDG&E case study on a Radisson Suites
hotel in North San Diego County.
We believe this is perhaps the most
important issue we've ever published.
PLEASE forward this GreenSheet to others
including your members !
California Investor Owned Utilities each
belong as members to all local chambers
within their service area supporting chamber
organizations up and down the state.
To other California chambers: Please let
us know about your Green Members so we can
publish your story in the C of C GreenSheet! |
