Pathway Energy Efficiency Loan Program

Pathway Lending offers below-market loans—as low as 4% for 5 years or 6% for 10 years—to finance energy efficiency and renewable energy projects up to $5 million, with 100% financing available to cover equipment, installation, design, and assessments. You can apply if you're a Tennessee business, nonprofit, or governmental entity with a project that reduces utility consumption across electric, gas, or water; local governments must provide a third-party energy audit or vendor proposal showing estimated savings. The loan structure is designed so that energy cost savings repay the debt, improving your operating costs and cash flow.

Pathway Lending has financed over 200 projects including lighting, solar, HVAC replacements, cool roofs, and air compressors, making it a proven source of customer financing for sustainable upgrades. Your customers qualify for 100% project financing—meaning no down payment barriers—with favorable terms (4–6% rates, 5–10 year terms for businesses; 4% for 6 years for governments), and the program accepts comprehensive measures and custom projects pending approval. Emphasize that Pathway covers all soft costs (assessments and design) alongside equipment and installation, and that the energy savings are structured to service the loan.

This loan program serves three sectors: commercial/industrial/nonprofit businesses (4% for 5 years or 6% for 10 years, 100% LTV, interest-only draw periods available), governmental entities including schools and municipalities (4% for 6-year capital outlay notes, 100% LTV, annual payments), and commercial properties via C-PACER alternative financing (up to 30 years). Pathway Lending operates as a Tennessee-based lender with a 25-year track record and has financed over 200 projects; projects must demonstrate energy or water savings. Target outreach to small locally-owned industrial businesses, hotels, auto dealerships, community centers, school systems, water treatment facilities, and hospitals; minimum loan size is $10,000 with projects ranging up to $5 million.