PROJECT FINANCING OPPORTUNITIES
The R Group personnel are industry leaders having wide experiences 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.
Financing Options
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 included with other utility or public financing, rebates and incentives. Although minimum loan is $250,000, but multiple projects may be bundled under a single loan.
Revolving Loan Fund is an internal pool of money created 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. Numerous municipalities in California have successfully used such funds. 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 a part of their utility bill over a period of a 10-year. Entities benefiting from 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 K-12 schools, colleges, universities, cities and counties to pay for energy efficiency practicality studies along with installation of energy saving measures. The interest rate is 1% for a term up 15 years. The CEC is accepting applications, but funding is not guaranteed.
Green Financing is a phenomenon that combines the world of finance and business with environmentally friendly behavior. It is a ground 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 lead 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 protecting the promotion of any business or activity that could be damaging to the environment now and for future generations.
504A Financing is a 10% 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 along with SBA-backing, 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 considering growing 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. Unlimited number of these loans can secure unlimited small businesses, 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 voluntary assessment. These assessments will be linked to the property, not the owner, and will be paid back through the property tax system over time, making the program affordable and energy efficient. Real estate owners choose PACE financing because:
- 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
- PACE
- Prop 39 Energy Expenditure Plan
- SBA 504 Green Public Policy Loans
- EPACT Tax Credit
These programs are focused on saving building owners 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.
Eligible improvements
Energy efficiency and energy generation improvements and, in some states, water conservation and hurricane and earthquake resistance, all qualify for PACE financing.
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