www.self-help.org

www.self-help.org

The Role of Financing Triple Bottom Line

Brian Schneiderman

NC Network of Grantmakers Annual Conference

2www.self-help.org/GreenLoans

What’s the Bottom Line

Profit

Business/ Banks

Community/ People

Social Non-profits

3www.self-help.org/GreenLoans

What’s the Bottom Line

Profit Equity/People

Community Economic Development

Community Development

Profit Environment

Environmental Development

4www.self-help.org/GreenLoans

What’s the Bottom Line

Profit Equity/People

Environment

Triple Bottom Line

5www.self-help.org/GreenLoans

The Shift Can Be Difficult

Organizations, businesses and individuals are strapped as is, yet

they have the vision

to break down the silos.

6www.self-help.org/GreenLoans

Innovation is Happening: Who Benefits?

To connect organizations, businesses and individuals to these innovations requires

Education Will Financing

Is there equal access to Green Opportunities that have positive economic, social and health benefits?

7www.self-help.org/GreenLoans

Spectrum of Finance

Bank/CU Debt

Mezz/SubDebt

Venture Capital

Tax Credits

Grants

Equity

Non-profit Lender

Utility/Municipal incentives

8www.self-help.org/GreenLoans

Robust Debt Market Critical for Expanding Triple Bottom Line Access

Bank/CU Debt

Mezz/SubDebt

Venture Capital

Tax Credits

Grants

Equity

Non-profit Lender

Utility/Municipal incentives

9www.self-help.org/GreenLoans

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 don’t realize savings? Good Credit

Score?

• Collateral– If had to foreclose, could collateral cover debt

• Is Project (loan) within Lender’s historical exp?– Lenders like standards based on market history

10www.self-help.org/GreenLoans

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

11www.self-help.org/GreenLoans

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

• It’s not easy yet

12www.self-help.org/GreenLoans

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 it’s not yet a “no brainer.”

Now is the perfect opportunity to bridge the marketplace—and increase wider

access.

13www.self-help.org/GreenLoans

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

www.self-help.org

www.self-help.org

Thank You!Brian Schneiderman

Director of Commercial Lending(919) 956 4420

brian.schneiderman@self-help.org