Loan or Debt Financing | Better Buildings Initiative

For certain organizations, loans may be available with more flexible or favorable terms such as below-market sake rates or greater tolerance for poor creditworthiness. These programs are typically established by populace organizations, foundations, or other secret entities for the function of serving a specific social indigence such as greenhouse gas moderation or community development. They vary widely in program design and target commercialize but typically fall into the follow categories :
State and Local Loan Programs
many state and local anesthetic governments have established lend programs that specifically target energy efficiency and clean energy projects within their borders. These programs can much provide lower rates and/or more flexible terms than traditional individual sector lenders, and they may operate in communities where loans are less accessible. They include “ internal ” lend programs that fund only projects in government facilities, vitamin a well as “ external ” programs that serve the broader community, including private sector organizations. One of the most big examples is the Texas LoanSTAR Revolving Loan Program, which has financed 237 loans totaling over $ 395M. In entire, more than 30 states have established lend programs targeted at energy conservation or renewable energy .
More information on submit and local loanword programs is available from the Department of Energy Revolving Loan Funds page. You can find specific information about loan programs in your area by searching for “ Loan ” in the Database of State Incentives for Renewable Energy.

Community Development Financial Institutions
Community Development Financial Institutions ( CDFIs ) provide loans and other fiscal services to hapless, underserved, or otherwise disadvantage communities. They include banks, recognition unions, loan funds, and venture funds, and they may serve organizations including non-profits, small businesses, real estate of the realm companies, low-cost housing, and other sectors. many CDFIs have programs specifically targeting energy efficiency and renewable department of energy projects, so they may be a good suit for organizations that seek to reduce their energy costs but otherwise have trouble accessing capital markets at fair rates .
More information on energy-related CDFI programs is available from the Opportunity Finance Network and the Council of Development Finance Agencies .
Grants and Program-Related Investments
Foundations, governments, and other funders sometimes offspring grants, repayable grants, or program-related investments ( PRIs ) to fund clean energy and energy efficiency projects in mission-driven organizations. A grant is a send contribution ( and is consequently not considered a loan or debt ), whereas a repayable accord comes with a requirement that the principal be paid back to the donor. A PRI is a relatively new structure in which the donor issues a lend with an sake rate well below the criterion marketplace rate, allowing the donor to count the PRI as a charitable contribution vitamin a hanker as it meets certain IRS requirements. These options are provided by a variety of local anesthetic, regional, and national organizations, and each broadcast typically has its own aim market and overarching goals.

noteworthy grantmaking organizations focused on energy efficiency include the Jessie Ball duPont Fund, the High Meadows Fund, and the Department of Energy .
U.S. Small Business Administration (SBA) Loan Programs
The U.S. Small Business Administration ( SBA ) was created in 1953 as an freelancer agency of the federal politics to aid, guidance, aid and protect the interests of small business concerns, to preserve free competitive enterprise, and to maintain and strengthen the overall economy of our state. As part of their services, the SBA offers numerous government guaranteed loanword programs that can be used to improve the energy efficiency of commercial buildings. By providing government guarantees to loans made by commercial lenders, SBA helps to enhance little business credit by guaranteeing 50 % -85 % of an eligible bank loan .
SBA loan programs that can be used to finance build department of energy efficiency projects include :

  • SBA Advantage ( 7a ) : SBA ’ s most common and flexible lend program. $ 5 million maximal lend sum .
  • SBA Grow ( 504 ) : Designed for finance substantial estate projects and equipment purchases. If building owner can reduce energy use by 10 % or offset energy consumption by 10 % with renewables, they can increase their maximum loanword debenture from $ 5 million to $ 5.5 million .
  • SBA Express : 36-hour application review and reception from SBA. $ 350,000 maximum lend amount .
  • SBA Microloan: Typically up to $50,000 in loan dollars; however, some lending institutions can go up to $350,000.
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Category : Finance