Drayage Loan Eligibility

Are You Eligible?

Eligible applicants can apply for the loan program in combination with a State TERP grant or H-GAC Regional TERP grant.

Guidelines for Loan Application

• Own a diesel drayage truck (Class 8a and 8b) with a Gross Vehicle Weight Rating (GVWR) of 80,000 lbs and greater;
• Drayage operators that conduct port related activities/business in the H-GAC region: Port of Houston, Port of Galveston, Freeport Port and Port of Texas City[1]. ;
• If combined with TERP, travel restrictions established by the TERP program will apply to your loan;
• Possess a valid vehicle registration, license plate, and driver’s license;
• Possess current vehicle insurance. 

Overall Selection Factors & Criteria

1.      Employment history
2.      Community ties
3.      Documented length of time operating in the H-GAC region
4.      Emission reduction benefits
5.      Credit Score
6.      Truck standards.
         ***IMPORTANT: 2008 engine or newer with less than 400,000 miles***
7.      If combined with TERP, travel restrictions established by the TERP program will apply to your loan.
8.      Install an AVL system. The cost of this technology can be added to the balance of the loan.
9.      Submit quarterly monitoring reports, documenting emission reduction benefits in the H-GAC region. Monitoring reports are required for each program: TERP and stand-alone loans.

Equity Injection

• Down payment between 10%-25% is required depending on the applicant’s credit score and other factors.
• TERP funds may be used as down payment
• Salvage value may be used as down payment for standalone loans
  

Loan Maturity

• Vehicle Replacement (5-7 years)
  Note: Shorter or longer terms may be considered on a case by case basis 
  

Interest Rate

The interest rate is based upon the “prime” (index used by banks to set rates on consumer loan products) at closing.  There is a minimum interest rate of 4%.

Collateral

• Assets financed

Truck Purchase Requirements - IMPORTANT

Under the H-GAC Drayage Loan Program, you must destroy your “old” vehicle and replace it with a truck that is:

• A newer used truck equipped with a Model Year 2008 engine or newer
• Class 8a/8b 80,000 lbs gross vehicle weight rating (GVWR) and higher
• Equipped with an Automatic Vehicle Locator (AVL) installed by the AVL provider certified by H-GAC (the cost of this can also be added to the balance of your loan)

How to Apply