Evaluation

All Clean Energy Fund loan applicants are subjected to a substantial programmatic and financial review.

Loan Amount
Clean Energy Fund loans range from $30,000 to $500,000. CDFA will consider Clean Energy Fund loans as low as $15,000 for certain Municipal projects.

Loan Term
Up to 10 years with potentially longer amortization periods for renewable energy projects. Interest-only payments are allowed during the construction period, up to 6 months, followed by principal and interest payments. There is no penalty for Pre-payment.

Interest Rate
Rates depend on the type of entity applying and their eligibility for various sources of funds. CDFA reserves the right to vary rates based on project risk, term, community or economic development impact, or other factors. The rate ranges below are subject to change.

	Federal Funds	Non-Federal Funds
Municipality, School, Non-Profit	2.0 – 2.5%	3.0 – 3.5%
Business	3.0%	4.5%

Loan to Value Ratio
CDFA allows for an 80% loan to value on Clean Energy Fund loans.

Funding Availability
CDFA’s Clean Energy Fund utilizes several funding sources. Funding availability will be limited by the available capital in each revolving loan fund.

Collateral/Guaranty
An unconditional repayment guarantee shall be required on all loans. In addition to a guarantee, CDFA’s policy is to require security on all loans. CDFA will require either a mortgage on real property and/or a UCC filing on the other assets of the borrower. A personal guarantee shall be required from owners of 20% or more of the company or where the credit history of the borrower is deemed to be at risk. CDFA may take a subordinate position in a project if it is determined that the borrower is in good financial health and that the loan would not be possible if a first position lien were to be required.

Note: The terms listed above are subject to differences within various funding sources and are subject to change.

The following documents will be required for closing of an approved loan:

Loan Commitment Letter
This letter states the amount of the approved loan, loan terms, and any special conditions pertaining to the loan commitment.

Loan Agreement and Promissory Note
Borrowers must enter into a Loan Agreement and Promissory Note with CDFA using CDFA’s standard form. The Loan Agreement and Promissory Note includes the ‘maximum loan amount’ that CDFA might provide to the project along with all of the terms governing the loan.

Collateral Documentation
A UCC Financing Statement will be filed with the County to place a lien on the equipment being installed. This will provide collateral value to the loan. Additionally, if the collateral value is not sufficient in relation to the amount of the loan, CDFA reserves the right to require a Mortgage and Security Agreement be signed and filed with the County to place a lien on the land and building subject to the loan.

Personal Guaranty (Businesses only)
CDFA requires a personal guaranty to be signed by the business owner. This personal guaranty is to provide for any shortfall in value should the business default on repayment of the loan and liquidation of the collateral does not satisfy the debt obligation outstanding.

Disclosure of Finance Charges (399-B)
Outlines the basic terms of the loan and any fees to be charged at loan closing.

Corporate Resolution or Municipal meeting minutes
The borrower will be asked to provide documentation expressing the authority for the borrowing organization to borrow up to the ‘maximum loan amount’, to grant guarantees or assignments (if required), and to designate an individual to sign the documents with CDFA on the borrowing organization’s behalf. A written resolution or meeting minutes documenting the corporation or municipality’s approval is required.

Attorney Opinion Letter (Municipalities only)
Verifies the review of the loan documents.

Additional Conditions to Closing
Borrower must agree to disclose all energy usage data for a period of 12 months following the project completion, and provide evidence of town approvals and permits, if applicable. Borrower must agree that if grant or rebate funds (i.e. USDA REAP grant or utility incentives) are received supporting costs covered by this loan, applicant will immediately pay down CDFA loan by that amount. If Federal funds are used to finance the project (discussed during application process), certain federal requirements will apply including the Davis Bacon Act.