green california summit green financing solutions · city of huntington beach . street light...
TRANSCRIPT
Green California Summit
Green Financing Solutions
Presenter: Nancee Trombley, Chief Deputy Executive Director California Infrastructure and Economic Development Bank (IBank)
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.
IBANK
FINANCING PROGRAMS
April 22, 2016 Show Me the Money! Financing Your Projects with the California Lending for Energy and Environmental Needs (CLEEN) Center 3
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.
PRIMARY FOCUS: PUBLIC BORROWERS IN THE MUSH MARKET
CLEEN CENTER DIRECT FINANCING Funding available in amounts ranging from
Terms for the useful-life of the project
Up to 100% eligible project costs
$500 thousand to $30 million
financed
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
TYPES OF CLEEN PROJECTS
Benchmarked to Thompson Reuters Municipal Data (MMD)
Subsidized: CalEnviroScreen
Lower transaction costs
Repayment qualifications are not based on energy savings
CLEEN CENTER CERTIFICATIONS
April 22, 2016 Show Me the Money! Financing Your Projects with the California Lending for Energy and Environmental Needs (CLEEN) Center 9
IMPA
CT
The impact on land resources and need to preserve
DESI
RABI
LITY
The economic and social desirability of the project
ENVI
RON
MEN
T Consistency with the State Environmental Goals and Policy Report
To be considered, applicant must certify:
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
Direct financing to public borrowers
ISRF DIRECT LOAN PROGRAM
and non-profit organizations sponsored by public entities for a wide variety of infrastructure and
economic development projects.
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.
ELIGIBLE APPLICANTS Subdivision of a Local Government ( D e p a r t m e n t s , A g e n c i e s , C o m m i s s i o n s , C i t i e s & C o u n t i e s )
Special Districts Joint Powers Authorities Public Benefit, Tax-Exempt,
Nonprofit Corporations ( w i t h e l i g i b l e s p o n s o r s h i p )
EXAMPLES OF ELIGIBLE PROJECTS
ISRF CREDIT UNDERWRITING AND CRITERIA
Financial Condition (Comprehensive Annual Financial Report or CAFR)
Repayment: 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.
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
Benchmarked to Thompson Reuters Municipal Data (MMD)
Subsidized: Unemployment
rate Median household
income Lower transaction costs
Better than public offering
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
BOND FINANCING PROGRAM
LOW-COST LONG-TERM
$37 BILLION
State Water Resources Control Board Clean Water State Revolving Fund
$860.7 million Public Agency Revenue Bonds
Hydro Systems, Inc. $2.5 million
Industrial Development Bonds
Capital Corrugated & Carton $3.8 million
Industrial Development Bonds
California ISO $191.8 million
501 (c)(3) Bonds
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 moderate-
income communities.
SMALL BUSINESS LOAN GUARANTEE PROGRAM (SBLGP)
Since the SBLGP has guaranteed over
1968,
grow and prosper in California and their communities.
30,000 loans to lending institutions that are committed to helping
small businesses
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.
LOS ANGELES
SANTA ROSA SACRAMENTO
SALINAS
OAKLAND
FRESNO
SANTA ANA
SAN DIEGO
California Capital Financial Development Corporation Sacramento, CA
California Coastal Rural Development Corporation Salinas, CA
California Southern Small Business Development Corporation San Diego, CA
Nor-Cal Financial Development Corporation Oakland, CA
Small Business Financial Development Corporation of Orange County Santa Ana, CA
Pacific Coast Regional Small Business Development Corporation Los Angeles, CA
State Assistant Fund for Enterprise-Business and Industrial Development Corporation (SAFE-BIDCO) Santa Rosa, CA
Valley Small Business Development Corporation Fresno, CA
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
IBank’s loan guarantee is a game changer for me.
Other traditional loans didn’t work for my business
and this one really makes a difference.
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.
“
” - Kat Nouri, owner
Total Loan Amount: $450,000
Interest Rate: 5.25% (term loan)
Guarantee Term: 7 years (term loan)
mass distribution I can actually grow my business and go into with my products now.
APPLICATIONS ACCEPTED CONTINUOUSLY
Experienced Loan Officers provide technical assistance and work with you throughout the process.
Call us to discuss your project.
CON
TACT
US
ISRF Program Tom Dear
CLEEN Center Tom Dear
Bond Financing Program Fariba Khoie
Small Business Finance Center Emily Burgos
Telephone: (916) 341-6600 Website: www.ibank.ca.gov