In November 2008, Roseburg-based Umpqua Bank and the Energy Trust of Oregon (ETO) launched GreenStreet Lending, a loan product to help homeowners and small businesses make energy efficiency improvements or install solar systems.

Chicago-based ShoreBank Corp. offers a similar product for homeowners; Umpqua’s is the first West Coast bank to offer such a loan. The GreenStreet program offers two loan options for customers of Portland General Electric (NYSE: POR), Pacific Power, NW Natural (NYSE: NWN) or Cascade Natural Gas.

Homeowners can choose between a 15-year home equity loan for between $5,000 and $50,000, or a five-year unsecured home improvement loan for between $1,000 and $50,000. Small businesses can take a 15-year commercial real estate improvement loan or a seven-year business term loan, both for as much as $100,000. The loans offer competitive interest rates and come with no closing costs. Customers can also take advantage of ETO incentives and any applicable tax credits.

ETO approached the bank because it recognized that individuals and businesses were not following through on energy efficiency recommendations made by ETO, says Nicole Stein, vice president of community relations for Umpqua. Some of the recommendations included installing new water heaters, replacing single-pane windows or installing solar panels.

“ETO could get them so far in the conversation and many could do a lot, but at the end of the day, a seamless transition to a financial entity...was something that ETO recognized was going to get people through that energy efficiency process more often,” Stein says.

The current economic climate drove the partners to launch the product now, according to Stein.

After the product's launch in early November 2008 until the end of the year, Stein says community interest has been high. Though she couldn't release numbers, she says the bank has received many applications and, at the time of this writing, was already granting funding.

She also says that the bank, which has $8.5 billion in assets and 148 storefront locations in Northern California, Oregon and Washington, is also going through ETO's energy efficiency walk-through process to identify improvements it can make at its branches, including its new South Waterfront branch, which is expected to be receive Silver certification through the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) program. Umpqua is the only West Coast bank with a LEED-accredited professional on-staff, according to Stein.