Please note: this is an archived news article release

This article was published on Wednesday, 29 March, 2023. The information contained within may be out of date or inaccurate. News articles and media releases older than 60 days are archived for future reference.

Small businesses can benefit from Environmental Upgrade Agreements

Environmental Upgrade Agreements (EUA) are a fantastic option for businesses wanting to fund environmentally friendly upgrades, such as solar panels, energy efficient lighting, and heating and cooling systems, while saving money and reducing their environmental impact.

Greater Shepparton City Council has partnered with Better Building Finance to offer these agreements to small and medium sized local businesses. EUAs are designed to be cash-flow positive, which means repayments can be lower than the savings from the very first year. The loan period for EUAs can be up to 20 years, giving businesses the flexibility to decide on shorter or longer loan terms depending on their needs. The benefits of an EUA include:

Extended finance loan terms to increase cash flow
No additional security requirements (personal, business guarantees, mortgages or registered charges)
Reduced business risks with fixed repayments
No hidden costs – 100 per cent finance for hard and soft costs
No costly and complicated refinances

This is an ongoing arrangement with Better Building Finance and Council, meaning no timelines or dates apply to the application. Council’s Team Leader Business and Industry, Michael Carrafa, said small to medium sized businesses had the opportunity to gain from environmentally friendly upgrades and technologies which have now become available.

“An Environmental Upgrade Agreement can help you access capital, freeing up cash flow and helping you complete projects that give your business long term security and cost savings. There are no upfront costs for your project, you simply repay the loan via a fixed quarterly charge on your property rates notice,” he said.

“It is a fairly straightforward process which can offer great benefits. We have some local businesses who have seen significant savings on their energy costs after installing solar panels.

“Multiple upgrades can be funded through EUAs, as long as they have a measurable environmental benefit. This means businesses can maximize the impact of their environmental upgrades while benefiting from cost savings.”

Business owners or landlords are encouraged to contact Council for further information. Each agreement is individual to the businesses circumstances and can be discussed with a finance professional.

For further information, phone Council on 5832 9700 or visit Council’s website