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The Role of Financing Triple Bottom Line

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Title: The Role of Financing Triple Bottom Line


1
The Role of Financing Triple Bottom Line
  • Brian Schneiderman
  • NC Network of Grantmakers Annual Conference

2
Whats the Bottom Line
Profit
Community/ People
Business/ Banks
Social Non-profits
3
Whats the Bottom Line
Profit
Equity/People
Community Development
Community Economic Development
4
Whats the Bottom Line
Profit
Equity/People
Triple Bottom Line
Environment
5
The Shift Can Be Difficult
  • Organizations, businesses and individuals are
    strapped as is, yet they have the vision
  • to break down the silos.

6
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?
7
Spectrum of Finance
Tax Credits
Grants
Equity
Mezz/SubDebt
Bank/CU Debt
Non-profit Lender
Venture Capital
Utility/Municipal incentives
8
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
9
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

10
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

11
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

12
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.

13
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

14
Thank You! Brian Schneiderman Director of
Commercial Lending (919) 956 4420 brian.schneiderm
an_at_self-help.org
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