In order to qualify for the Lawton Loan Program, potential Borrowers must be one of the following entities:
- Nonprofit Organization (includes hospitals and schools)
- Local Government (includes public school systems and community colleges)
- Maryland Businesses (must be registered to do business with the State of Maryland)
MEA must reserve $170,000 of the $850,000 available for nonprofit organizations until November 30, 2018. Applications from local governments and businesses are considered together with energy savings as the key differentiating feature. After November 30, all available funds will then be pooled and loaned to all eligible organizations on a first come, first-served basis until June 30, 2019 or until funding is exhausted, whichever comes first.
Eligible projects must have a simple payback of 10 or fewer years. Projects with paybacks exceeding 10 years are not eligible for funding. All costs necessary for implementing an energy conservation project can be considered for funding, including the technical assessment, reasonable fees for special services, plans and specifications, and the actual costs of the energy conservation measures and improvements.
The interest rate for all Lawton Loans made during Fiscal Year 2019 (July 1, 2018 – June 30, 2019) will be 2.0%, compounded annually.
Applicant organizations must adhere to all Lawton Loan Program regulations, found in the Code of Maryland Regulations, Title 14, Subtitle 26, Chapter 01 (COMAR 14.26.01).
MEA has prepared a slide presentation that includes more information about how the program operates, available in the link below. Applicants are strongly encouraged to review the information prior to completing an application.
FY19 Jane E. Lawton Loan Program Information
Loan Document Library
Samples of the Lawton Loan Agreement, Promissory Note, and Security Agreement have been provided below for informational purposes only. The language contained within each document is subject to change based on the specific requirements of the Borrower’s Lawton Loan. Generally, these three documents will be required for all Lawton Loans. Please note, however, that additional documentation may be required based on the requirements of the Loan.
Lawton Loan Agreement
Lawton Loan Promissory Note
Lawton Loan Security Agreement