The Rhode Island Economic Development Corporation (RIEDC) Board of Directors approved financing that will help Providence-based eNow, Inc. (eNow) expand.
The RIEDC Board voted to guarantee a $1 million loan through the Job Creation Guaranty Program to eNow. The financing will help the clean technology company, which specializes in developing renewable energy applications for the transportation industry, to create jobs with average annual wages of $88,281. This by far exceeds the program’s requirement that wages be at least 250% of the minimum annual wage ($38,480).
Through the RIEDC Board subcommittee structure established by Governor Lincoln D. Chafee, the Access to Capital Subcommittee has put in place additional policy rules to strengthen and tighten the Job Creation Guaranty Program. New pre-qualifying criteria for applicants for the program include: a minimum private co-investment requirement (30 percent for start-ups, 20 percent for established businesses), the creation of 8 to 11 jobs for every $1 million being requested, minimum cash flow targets, personal guarantees by ownership, completed regulatory approvals and additional requirements applicants must meet before being considered for approval.
The updated policies are in addition to the new rules and regulations proposed by Governor Chafee for the Job Creation Guaranty Program and adopted by the RIEDC Board in April 2011 which capped the maximum amount of loan guarantees at $10 million for any single project.
“With new rules and policies in place to protect taxpayers, the Job Creation Guaranty Program, when used wisely, can allow innovation- and technology-driven businesses, such as eNow, to access the capital they need to grow and bring quality new jobs to Rhode Island,” said Governor Chafee, who chairs the RIEDC Board.
“The new policies for the Job Creation Guaranty Program are part of an ongoing effort Governor Chafee has asked us to focus on to further improve the application, review and underwriting procedures for RIEDC financing programs,” said Jerauld Adams, Vice-Chair of the RIEDC Board, member of the Board’s Access to Capital subcommittee and President of North American Industries. “Helping businesses like eNow gain access to the capital and credit they need to expand and hire more people is important to supporting job growth in our state.”
eNow is an innovative, clean technology company, specializing in renewable energy systems for the transportation industry. eNow’s solar technology will enable customers to comply with industry standards and regulations while reducing greenhouse gas emissions and lowering their operating cost at the same time. eNow technology will allow trucks, buses and other heavy-duty commercial vehicles to use solar technology to reduce fuel consumption, reduce emissions to comply with regulatory requirements, provide stand-by power when vehicles are not running, provide power to truck de-icing and refrigeration systems and take advantage of other energy and cost saving applications.
eNow was formed in 2011 to introduce advanced solar power technologies to the transportation industry.
The eNow management team is made up of seasoned executives, engineers, and scientists, each averaging over 25 years of experience in their fields. From the development of solar applications for the space program, to the specification and sourcing of solar panels, to the management of large scale solar installations and management of companies at all levels, the eNow management team is highly capable, and they are dedicated to making eNow the most innovative player in an evolving market.