Energy Efficiency, Energy Procurement, Finance - March 14, 2018
Montgomery County's Green Bank launches loan product for C&I’s
Montgomery County Green Bank has launched its first loan product for businesses to finance energy efficiency projects, with the hope of making 100 loans available in the next year.
Biz Journals reported that the new Commercial Loan for Energy Efficiency and Renewables (CLEER) program is the first of what the new nonprofit hopes will be a series of financial products designed to spur energy efficiency projects across the county. The loans are being made available through Laurel-based Revere Bank and Ascentium Capital LLC, according to Montgomery County Green Bank CEO Thomas Deyo.
The non-profit Green Bank will put up $1 million as insurance against defaults in order for lenders to make available $20 million in capital for potential loans to commercial and industrial businesses that want to replace their equipment with more energy efficient technology or to fund related renewable energy projects. The businesses then repay lenders out of their energy savings, while the Green Bank receives some money in the form of loan origination fees.
Deyo plans to spread the word about this program by attending renewable energy events in the county and reaching out to business groups in order to showcase what the green bank can do. Montgomery County became the first locality in the nation to approve a green bank in June 2015.