Title: The Role of Financing Triple Bottom Line
1The Role of Financing Triple Bottom Line
- Brian Schneiderman
- NC Network of Grantmakers Annual Conference
2Whats the Bottom Line
Profit
Community/ People
Business/ Banks
Social Non-profits
3Whats the Bottom Line
Profit
Equity/People
Community Development
Community Economic Development
4Whats the Bottom Line
Profit
Equity/People
Triple Bottom Line
Environment
5The Shift Can Be Difficult
- Organizations, businesses and individuals are
strapped as is, yet they have the vision - to break down the silos.
6Innovation 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?
7Spectrum of Finance
Tax Credits
Grants
Equity
Mezz/SubDebt
Bank/CU Debt
Non-profit Lender
Venture Capital
Utility/Municipal incentives
8Robust 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
9Critical 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
10Current 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
11Current 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
12Bridge 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.
13Support 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
14Thank You! Brian Schneiderman Director of
Commercial Lending (919) 956 4420 brian.schneiderm
an_at_self-help.org