The basic process for obtaining Financing through the VirginiaSAVES™ program is a two-pronged underwriting approach to approve of Project Submittals and subsequent Program Applications as follows (Projects must be approved for Financing through the Program before implementation or construction begins):


When a scope of measures or project is identified and ready for financing and the Borrower is interested in using the Program as a funding vehicle, the Borrower and/or the Eligible Service Provider will submit a Project Summary Worksheet (“PSW”) which describes the Project and the Eligible Measures being funded and the equipment and vendors involved along with an energy assessment that quantifies the savings associated with the Eligible Measures, as well as such additional information as the Administrator shall reasonably determine is needed to assess the merits of the Project (the collective materials submitted being the “Project Submittal”). 


The Administrator reviews the Project Submittal under a “reasonableness standard” on behalf of the Program to ensure that the measures proposed under the Project constitute “Qualified Conservation Purposes” within the QECB Regulations and meets the Program Guidelines and Policies for eligibility for funding under the Program. A Project and associated measures which meet this standard will be deemed eligible for funding through the Program (the “Eligible Measures”).  


If after a determination is made that the Project meets the requirements and is eligible, then the Borrower decides whether to proceed with submitting a formal application for a loan through the Program (the “Program Application for Private Borrower” and "Program Application for Local Government Borrower" ) along with an application fee of $1,000 (the “Application Fee”) and certain requested information concerning the Project and the Borrower’s credit and historical financials (the “Application Package”).  This material is reviewed internally as well as by a third-party contracted underwriter when needed in accordance with the Program Guidelines and Policies.


If the Borrower has a Funding Party arranged for the Project, then the Program will work with the Borrower and Funding Party to have a term sheet issued to fund the Project (the “Term Sheet”) if one has already not been issued.  If the Borrower does not yet have a Funding Party at the time of the Application Package submittal, then the Administrator, in its role as Program Administrator but not as a financial advisor or agent to the Borrower, will work with the Borrower to facilitate introductions to one of the Funding Parties associated with the Program for the purpose of providing the Financing.  If the Borrower requires the services of a financial advisor or agent to assist with arranging terms with a Funding Party, the Borrower will need to arrange for such services independent from the services provided by the Administrator in it administrative role with the Program.


Upon acceptance by the Borrower of the Financing Term Sheet, then the Application Package is reviewed by the Program and the Conduit Issuer, and if approved, then the Borrower enters into a term sheet with the Program (the “Program Term Sheet”), which sets forth the business terms for using the Program and the conduit issuance of the QECBs to fund the Project working with the Funding Party.  The Program Term Sheet is non-binding except for the Borrower agreeing to pay for the Program’s legal costs or out-of-pocket expenses if the Project funding does not close for whatever reason and also to pay the Program Fee due upon closing of the Financing from the Project.


Once the Program Term Sheet is signed, then the Administrator will work with the Funding Party, the Conduit Issuer, and the Borrower, and each of their respective legal counsel and the Program’s Bond Counsel, to document and close the Financing using the QECB Allocations.  


As part of the closing documentation, the Borrower will enter into an Administrative Services Agreement for the Administrator to handle the filing of the paperwork for the Borrower to receive the credit payment subsidies from the QECBs.

Basic financing terms

The VirginiaSAVES Program offers subsidized financing through the use of the QECBs funded by third-party Funding Parties for the Eligible Measures and Projects with initial funding available in the amount of the Initial Allocation and additional funding being made available through the Additional Allocations as needed and available from the Commonwealth.  The minimum and maximum loan size can be revised at the discretion of the Program on a case by case basis.

eligible service providers

In order to encourage broad market participation, the Program facilitates subsidized Financing through a variety of delivery models, including projects developed through independent engineers, consultants and auditors, energy service providers, performance contracting entities, product vendors and installing contractors (each an “Eligible Service Provider”). Each such party must reasonably demonstrate its qualifications and capabilities of providing the services proposed for the Project in order to qualify as an Eligible Service Providers so as to be able to submit a Project Submittal for funding through the Program and/or perform work on behalf of a Project approved for funding through the Program   The latest list of approved Eligible Service Providers is posted at the “Resources” section of this website.  Service providers not currently listed can generally be pre-approved in parallel with funding applications to the Program.  Refer to the Eligible Service Provider Application Guide.