Green California Summit Green Financing Solutions

Transcription

1 Green California Summit Green Financing Solutions Presenter: Nancee Trombley, Chief Deputy Executive Director California Infrastructure and Economic Development Bank (IBank)

2 The legislature created IBank in 1994 to finance public infrastructure and economic development that creates jobs and a strong economy to improve the quality of life for the people of California. IBank has broad authority to issue tax-exempt and taxable revenue bonds, provide financing to public agencies, leverage State and Federal funds and more.

3 IBANK FINANCING PROGRAMS Show Me the Money! Financing Your Projects with the California Lending for Energy and Environmental Needs (CLEEN) Center April 22, 20163

4 CLEEN CENTER Assists in achieving California s Greenhouse Gas Reduction Goals; Drives down the cost of clean energy, water conservation and environmental projects; and enhances market confidence in green investing.

5 PRIMARY FOCUS: PUBLIC BORROWERS IN THE MUSH MARKET

6 CLEEN CENTER DIRECT FINANCING Funding available in amounts ranging from $500 thousand to $30 million Terms for the useful-life of the project Up to 100% eligible project costs financed

7 TYPES OF CLEEN PROJECTS Generation Renewable energy, solar, wind, biomass, hydroelectric Conservation Energy efficiency retrofits, Light Emitting Diode (LED) lights, Building automation and controls Other Energy storage, transmission, distribution, Electric Vehicle (EV) charging stations, alternative technologies, alternative fuels

8 Benchmarked to Thompson Reuters Municipal Data (MMD) Subsidized: CalEnviroScreen Lower transaction costs Repayment qualifications are not based on energy savings

9 CLEEN CENTER CERTIFICATIONS To be considered, applicant must certify: IMPACT The impact on land resources and need to preserve DESIRABILITY The economic and social desirability of the project ENVIRONMENT Consistency with the State Environmental Goals and Policy Report Show Me the Money! Financing Your Projects with the California Lending for Energy and Environmental Needs (CLEEN) Center April 22, 20169

10 CITY OF HUNTINGTON BEACH STREET LIGHT ACQUISITION AND LED RETROFIT PROJECT As IBank's first CLEEN project, the loan assisted in the acquisition and retrofit of more than 11,000 streetlights with new Light Emitting Diode (LED) technology with an expected 3.5 million kilowatt-hours of annual energy savings in the first year. Loan Amount: $3,000,000 This acquisition and retrofit represents a rare opportunity to improve the City s finances, infrastructure, light quality, and environmental footprint. -Energy Manager Antonia Graham

11 ISRF DIRECT LOAN PROGRAM Direct financing to public borrowers and non-profit organizations sponsored by public entities for a wide variety of infrastructure and economic development projects.

12 Funding available from $50 thousand to $25 million Terms for the useful-life of the project up to 30-years Up to 100% of eligible project costs financed.

13 ELIGIBLE APPLICANTS Subdivision of a Local Government (Departments, Agencies, Commissions, Cities & Counties) Special Districts Joint Powers Authorities Public Benefit, Tax-Exempt, (with eligible sponsorship) Nonprofit Corporations

14 EXAMPLES OF ELIGIBLE PROJECTS

15 ISRF CREDIT UNDERWRITING AND CRITERIA Financial Condition Repayment: (Comprehensive Annual Financial Report or CAFR) Enterprise Revenues: rate payer fees; water, sewer, other General Fund revenues Property assessments Other recurring revenues acceptable to IBank Meet prevailing wage and contractor pre-qualifications.

16 DEL NORTE COUNTY SOLID WASTE & RECYCLE Phase 1 of a project in Crescent City for a new facility Loan Amount: $3.535 Million Interest Rate: 3.07% Loan Term: 30 years

17 Benchmarked to Thompson Reuters Municipal Data (MMD) Subsidized: Unemployment rate Median household income Lower transaction costs Better than public offering

18 BOND FINANCING PROGRAM Tax-exempt and taxable conduit revenue bond financing for: Qualified nonprofit public benefit corporations Eligible manufacturing and processing companies Government agencies Privately owned facilities that provide services to the general public

19 LOW-COST LONG-TERM

20 $37 BILLION Hydro Systems, Inc. $2.5 million Industrial Development Bonds California ISO $191.8 million 501 (c)(3) Bonds Capital Corrugated & Carton $3.8 million Industrial Development Bonds State Water Resources Control Board Clean Water State Revolving Fund $860.7 million Public Agency Revenue Bonds

21 SMALL BUSINESS FINANCE CENTER (SBFC) SBFC partners with Financial Development Corporations to provide loan guarantees for small businesses that experience barriers to capital, aiding in the creation and retention of jobs and encouraging investment in low- to moderateincome communities.

22 SMALL BUSINESS LOAN GUARANTEE PROGRAM (SBLGP) Since 1968, the SBLGP has guaranteed over 30,000 loans to lending institutions that are committed to helping small businesses grow and prosper in California and their communities.

23 HOW IT WORKS When a business is having difficulty accessing capital, the Small Business Loan Guarantee Program (SBLGP) provides the lender with added support in the form of a loan guarantee. It s like an insurance policy for the lender. This provides incentive to lenders to offer loans to small businesses that were not otherwise eligible for traditional loans. Financial institutions, credit unions, Community Development Finance Institutions, and Financial Development Corporations (FDCs) make small business loans with the support of IBank guarantee to minimize the lender s risk. An FDC works as an agent of IBank to issue the guarantee to the lender for up to 80% of the loan.

24 California Capital Financial Development Corporation Sacramento, CA California Coastal Rural Development Corporation Salinas, CA SACRAMENTO SANTA ROSA OAKLAND California Southern Small Business Development Corporation San Diego, CA Nor-Cal Financial Development Corporation Oakland, CA SALINAS FRESNO Small Business Financial Development Corporation of Orange County Santa Ana, CA Pacific Coast Regional Small Business Development Corporation Los Angeles, CA LOS ANGELES SANTA ANA State Assistant Fund for Enterprise-Business and Industrial Development Corporation (SAFE-BIDCO) Santa Rosa, CA Valley Small Business Development Corporation Fresno, CA SAN DIEGO

25 Use of Funds: Business Acquisition New Construction, Renovation, Tenant Improvement Inventory & Receivables Business Expansion Purchase Equipment Working Capital Lines of Credit Start-Up Costs Gap Financing Farming Terms: Guarantee up to 80% Loans up to $20 million Maximum guarantee $2.5 million Guaranteed up to 7 years (loan term can be longer) Eligible for California business entities with 750 employees or less Loan qualifications & interest rates based on lender s underwriting criteria 2.5% fee on the guarantee amount + $250 doc fee

26 Emeryville-based Modern-twist has pioneered the use of pure, food-grade, sustainable, silicone products for the home, including the reusable Stasher bag shown here. IBank s loan guarantee is a game changer for me. I can actually grow my business and go into mass distribution with my products now. Other traditional loans didn t work for my business - Kat Nouri, owner and this one really makes a difference. Total Loan Amount: $450,000 Interest Rate: 5.25% (term loan) Guarantee Term: 7 years (term loan)

27 APPLICATIONS ACCEPTED CONTINUOUSLY Experienced Loan Officers provide technical assistance and work with you throughout the process. Call us to discuss your project.

28 CONTACT US CLEEN Center Tom Dear ISRF Program Tom Dear Bond Financing Program Fariba Khoie Small Business Finance Center Emily Burgos Telephone: (916) Website: