The Role of Financing Triple Bottom Line

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The Role of Financing Triple Bottom Line

• Brian Schneiderman
• NC Network of Grantmakers Annual Conference

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Whats the Bottom Line
Profit
Community/ People
Business/ Banks
Social Non-profits
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Whats the Bottom Line
Profit
Equity/People
Community Development
Community Economic Development
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Whats the Bottom Line
Profit
Equity/People
Triple Bottom Line
Environment
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The Shift Can Be Difficult

• Organizations, businesses and individuals are
  strapped as is, yet they have the vision
• to break down the silos.

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Innovation is Happening Who Benefits?

• To connect organizations, businesses and
  individuals to these innovations requires

Education
Will
Is there equal access to Green Opportunities that
have positive economic, social and health
benefits?
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Spectrum of Finance
Tax Credits
Grants
Equity
Mezz/SubDebt
Bank/CU Debt
Non-profit Lender
Venture Capital
Utility/Municipal incentives
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Robust Debt Market Critical for Expanding Triple
Bottom Line Access
Tax Credits
Grants
Equity
Mezz/SubDebt
Bank/CU Debt
Non-profit Lender
Venture Capital
Utility/Municipal incentives
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Critical Drivers for a Lender

• Ability to repay
• Energy efficiency Are savings real? Greater than
  increased debt payment?
• Match amortization to life of collateral
• Financial strength of borrower
• Could they repay if dont realize savings? Good
  Credit Score?
• Collateral
• If had to foreclose, could collateral cover debt
• Is Project (loan) within Lenders historical exp?
• Lenders like standards based on market history

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Current Challenges of Borrowing for Green

• Collateral
• How much would a solar water system be worth in 3
  years if you had to foreclose? How would you get
  it off the roof?
• Capacity to Repay
• Are savings greater than increased debt payments
• Typically need a longer amortization than
  depreciable life of collateral
• Prices on green innovations coming down but not
  yet low enough that can support debt

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Current Challenges of Borrowing for Green

• Deal Flow
• People get the concept but still hesitant to
  invest
• Expensive to start new lending programs
• Education
• Consumer Green is exciting but overwhelming to
  know what to do
• Lender lenders like historical data
• Its not easy yet

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Bridge Concept to Opportunities to Market

• People get it the concepts.
• Prices are coming down.
• But the economics of most green investments make
  long-term sense.
• People are focused on short-term.
• So its not yet a no brainer.
• Now is the perfect opportunity to bridge the
  marketplaceand increase wider access.

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Support Financing to Increase Access

• Tools to fill collateral gap.
• Low cost of capital to subsidize rate to Lender
  and borrower
• Energy Audits as educational tool
• Invest in human resources to build replicable
  models

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Thank You! Brian Schneiderman Director of
Commercial Lending [phone] brian.schneiderm
an_at_self-help.org