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

LoanProgram@ibank.ca.gov

CLEEN Center Tom Dear

LoanProgram@ibank.ca.gov

Bond Financing Program Fariba Khoie

Fariba.Khoie@ibank.ca.gov

Small Business Finance Center Emily Burgos

SBFC@ibank.ca.gov

Telephone: (916) 341-6600 Website: www.ibank.ca.gov