PROJECT FINANCING OPPORTUNITIES
The R Group personnel are industry leaders have extensive experience in project financing opportunities, energy efficiency incentive programs and regulatory requirements. Our vast experience has enabled hundreds of clients benefit from numerous local and federal opportunities.
Energy Project Lease Financing is designed speciﬁcally for local public agencies to fund energy efﬁciency improvement projects. Agencies can take advantage of low interest rates (treasury index plus a market spread) and terms of up to 15 years. Financing is provided through private lenders and may be used in conjunction with other utility or public ﬁnancing, rebates and incentives. Minimum loan is $250,000, but multiple projects may be bundled under a single loan.
Revolving Loan Fund is an internal pool of money set up by the public agency to finance energy efficiency projects. Utility bill savings from those financed projects replenish the pool of money allowing additional projects to be financed. Revolving loan funds provide a sustainable form of financing for future projects within the host public agency. Several municipalities in California have used such funds successfully. The Energy Network can help your agency establish a revolving loan fund including identifying initial seed funding and agency commitment for the fund.
On-Bill Financing allows local private and public agencies to finance energy efficiency projects with zero-interest and pay back the loan as part of their utility bill over a 10-year period. Entities that take advantage of this program may also receive additional financial incentives such as rebates from their utilities.
California Energy Commission Financing offers loans of up to $3 million to cities, counties, colleges, universities and K-12 schools to pay for energy efficiency feasibility studies and the installation of energy saving measures. The interest rate is 1 percent for a term up 15 years. The CEC is accepting applications, but funding is not guaranteed.
Green Financingis a phenomenon that combines the world of finance and business with environmentally friendly behavior. It is an arena for many participants, including individual and business consumers, producers, investors, and financial lenders. Green finance can be expressed differently depending on the participant, and it may be led by financial incentives, a desire to preserve the planet, or a combination of both. In addition to demonstrating proactive, environmentally friendly behavior, such as promoting mass transit or the recycling of used goods, green finance is about avoiding the promotion of any business or activity that could be damaging to the environment now or for future generations.
504A Financing is a 10-percent down, fixed-rate, long-term loan designed to expand capital access – filling a market gap in long-term financing for America’s small businesses. Since it is fixed-cost and long-term as well as SBA-backed, the 504 is one of the best financing options available for small business owners today.
More Bottom-line Green With SBA-504’s Green Energy Loan
Small businesses looking to grow their business can qualify for commercial real estate loans up to $20 million under SBA-504′s Green Energy Loan program. This special loan combines up to $5.5 million from the SBA/CDC with a bank’s contribution to reach the total of up to $20 million. Small businesses can secure an unlimited number of these loans, each with the maximum of $5.5 million in SBA financing. A typical SBA-504, non-energy loan, maxes out at $5 million.
Each SBA-504 Green Energy loan can provide up to $5.5 million in SBA/CDC financing when used to purchase, build, convert or expand a building that meets one of the following criteria:
PACE Financing(Property Assessed Clean Energy) is an opportunity for property owners to finance energy efficiency, water conservation and renewable energy generation improvements through a voluntary assessment. These assessments will be attached to the property, not the owner, and will be paid back through the property tax system over time, making the program not only energy efficient but also affordable.Real estate owners choose PACE financing because it:
- Covers 100% up front financing, including project development costs
- Provides long-term funding and results in immediate benefit to cash flow
- Stays with the building upon sale
- Solves split incentives by passing payments to tenants
- Increases building value and marketability
- Offers a range of accounting treatments.
Select from the programs below for more information that may fit best for your project(s).
- CTCAC – California Tax Credit Allocation Committee
- HUD, FHA, MIP Reduction – Department of Housing & Urban Development’s Federal Housing Administration Mortgage Insurance Premium Reduction
- Fannie Mae Green Financing
- Freddie Mac Green Advantage
- Prop 39 Energy Expenditure Plan
- SBA 504 Green Public Policy Loans
- EPACT Tax Credit
These programs are focused on saving building owners a substantial amount of money by reducing the energy consumption and cost of their properties. If you are a building owner, manager and are interested in taking advantage of these specific programs, feel free to contact us to discuss options.
Energy efficiency and energy generation improvements and, in some states, water conservation and hurricane and earthquake resistance, all qualify for PACE financing.