RFI for Energy Efficiency Revolving Loan

The Michigan Department of Environment, Great Lakes, and Energy (EGLE) issued a Request for Information (RFI 260000000008) to solicit market feedback on financial products and lending practices for energy efficiency projects under the Energy Efficiency Revolving Loan Fund Capitalization Grant Program. This RFI seeks input from lending institutions to develop program strategy for distributing $13,327,440 in federal Department of Energy funding to support energy efficiency upgrades and retrofits for both commercial and residential properties in Michigan. Eligible vendors must provide information on their organizational capabilities, loan products, and underwriting criteria for residential and commercial borrowers, with particular emphasis on three proposed co-lending models: a standard co-lending structure, a model incorporating loan loss reserve (LLR) provisions, and a model with subordination of EGLE's portion regarding default and collections. Vendors must address program attractiveness, potential barriers to lending, capacity to serve medium- and high-risk borrowers, and compliance capabilities with federal requirements including Davis-Bacon Act wage requirements, Build America Buy America Act provisions, and National Environmental Policy Act compliance. Responses must be submitted electronically through the Michigan.gov/SIGMAVSS system in modifiable native formats (Microsoft Word, Excel, Google Docs, or Sheets) with individual file sizes not exceeding 6 MB by 3:00 p.m. Eastern on Friday, March 27, 2026. Vendors may submit written questions to Solicitation Manager Lisa VanOstran (vanostranl@michigan.gov, 517-599-7680) by 3:00 p.m. Eastern on Friday, February 20, 2026, with state responses posted by March 4, 2026. All responses become public record immediately upon receipt subject to Michigan's Freedom of Information Act, though vendors may request confidential treatment for trade secrets and proprietary financial information by submitting a completed Confidential Treatment Form.

The State reserves the right to invite selected vendors for oral presentations and may use RFI responses to develop a future Request for Proposal or program applications. Program Lenders will be selected from federal- and state-chartered banks, credit unions, and CDFI-certified community development financial institutions with offices in West Michigan, meaning responses are restricted to these types of lending institutions. No incumbent vendors or current contractors are identified in the solicitation materials. The funded program allocates approximately $8,154,578 to $8,869,890 for loan participation (depending on model selected), $3,331,890 for subsidies covering 100 percent of qualified energy audit costs and eligible project completion costs for low-income homeowners, $1,125,690 for program management, and $715,312 for loan loss reserves. Under the program structure, EGLE will participate in 50 percent of each eligible loan at a fixed 2 percent interest rate while participating lenders set their own rates on their 50 percent share, with loan terms not to exceed 15 years or the retrofit's expected lifecycle, whichever is shorter. Eligible commercial projects target non-residential buildings with 500 or fewer employees conducting majority business in Michigan (with preference for entities with 100 or fewer employees), while eligible residential projects include single-family homes, condominiums, duplexes, and manufactured housing units, all supported by qualifying energy audits demonstrating life-cycle cost-effectiveness.