The New Mexico Energy, Minerals and Natural Resources Department is accepting applications for loans to finance energy-efficiency upgrades in commercial buildings that serve a community purpose.

EMNRD received $5.3 million from the U.S. Department of Energy to create an Energy Efficiency Revolving Loan Fund (EERLF), which offers low-interest loans ranging from $250,000 to $1 million to eligible organizations in the state.

The eligible organizations include nonprofit and for-profit entities that own or operate commercial buildings that serve a public service, such as education, recreation, healthcare or cultural services.

“This loan fund is one more way we are supporting Gov. Lujan Grisham’s goal of boosting New Mexico’s economy while also protecting its environment,” said EMNRD Sec. Melanie Kenderdine in a statement. “These loans will ensure the recipients’ economic viability by lowering the costs for building upgrades while simultaneously reducing their carbon footprints.”

The EERLF offers loans at a fixed rate of 2% to cover energy efficiency upgrades such as smart thermostats, new HVAC systems, insulation, air sealing, lighting, and building envelope improvements. Solar and electric panel upgrades are eligible as part of a comprehensive energy efficiency project plan.

Applicants must demonstrate that more than 50% of their revenue is earned in New Mexico or that more than 50% of their services are provided in the state. EMNRD’s Energy Conservation and Management Division (ECAM) is partnering with the New Mexico Finance Authority to administer the program.