There have been multiple cities and counties that have offered incentive programs to help residents purchase electric bikes (e-bikes). These bicycles still require riders to pedal, but with the aid of a small electric motor, they require somewhat less physical energy and make them accessible to people for whom ordinary biking may be too arduous. 

Most of these incentive programs have been structured as rebates or discounts. For example, participants typically can receive a flat amount, like $500, off the cost of a new e-bike of their own. But these rebates require “ongoing public or philanthropic investment to maintain which, given projected budget deficits for the city of Cincinnati, we knew would be difficult to do,” according to Joshua Pine, innovation team director for the city. 

With that in mind, Cincinnati is pioneering a better way: a subsidized financing/revolving loan model. If the pilot works out, then more people will be able to “experience the benefits of e-bikes for everyday transportation. By reducing upfront costs, the pilot supports residents using e-bikes for commuting, errands, childcare, recreation, and other daily trips,” according to the city’s website. Once the loans are paid off, then the bikes become property of their new owners.

Cincinnati’s effort is still in the pilot stage, funded by a $50,000 philanthropic donation. 

Here’s how it works: The city offers interest-free installment payments to participants (who need to be at least 18 years old) over a 12-month period. For example, for a $1,800 e-bike, a participant would pay $150/month for the year. As participants pay back their loans, this would allow the bike shop to then offer additional loans and create a revolving fund. 

“Our eventual goal would be to partner with a local financial institution or credit union to leverage private capital to scale this pilot,” says Pine, “and be able to offer e-bike financing as a financial product similar to how one can finance purchasing a car.”

The advantages of e-bikes to the city, according to its website include the ability to:

• Avoid gas and parking expenses

• Make hills and longer trips easier

• Replace short car trips or serve as a primary mode of transportation for car-free households

• Enjoy a fun and flexible way to travel

• No driver’s license is required and insurance is optional

• Reduce environmental impact and improve local air quality by not driving

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