Guidelines

Programmatic Underwriting
The Clean Energy Fund program supports projects that meet the following criteria:

1. Projects result in 15% Minimum Energy Savings;
2. Energy Efficiency projects require a Level II Energy Audit (Single measure lighting projects may be excepted);
3. <10 yr. payback for energy efficiency and <20 yr. payback for renewable energy projects;
4. Estimated lifetime project savings must be greater than cost of project;
5. Term of loan may not exceed estimated useful life of project;
6. Consultation with appropriate utilities regarding incentives for energy efficiency projects.

Requirements may vary depending on the project scope, entity type of the applicant, and the source of funds for the loan. Exceptions to the above criteria may be made for projects as noted in the Program Objectives section.

Program Recommendations
CDFA recommends that, where applicable, Clean Energy Fund applicants:

1. Incorporate reasonable Energy Audit recommendations that exceed current NH State Energy Code and especially efforts to reach any of the following standards: LEED, Energy Star, Passive House, or Net Zero.
2. Contract for 3^rd party commissioning of any new energy system
3. Electrify space and hot water heating systems.
4. Install Solar Photovoltaics.

Financial Underwriting
Each borrower will be evaluated to assure that they have the financial capacity to repay the loan within the terms of their agreement. The final decision will consider the overall financial condition of the borrower and the reasonableness of the financial projections provided with the application. Required financial documents are listed in Appendix A.

Loan Terms

Loan Amount
Clean Energy Fund loans range from $30,000 to $500,000.

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
On a quarterly basis, CDFA will set its base lending rate (“CDFA Base Rate”) by considering the prime rate (also known as the Wall Street Journal Prime Rate), cost of capital, and potential impact on borrowers. Applicants may qualify for one or more discounts with a minimum lending rate of 2.0%. CDFA reserves the right to adjust the offered rate based on project risk, term, community or economic development impact, or other factors. An interest rate calculator is available on the CDFA website. Available discounts are subject to change. See CDFA Interest Rate Calculator.

Loan to Value Ratio
CDFA allows for loans up to 80% of the value of the Clean Energy project (20% borrower equity required). See Collateral section below for information on collateral value.

Origination Fee – (If Federal loan funds are awarded, fees will not be charged to borrower)
A sliding fee equal to 1% of the CDFA loan amount (see the fee table below) is charged to cover loan underwriting and full application review. This fee is due at the time of loan closing. If your application is denied due to underwriting or eligibility, this fee is refundable.

 

	Origination Fee	Minimum Fee	Cap
Municipality	1.0%	$350	$700
Non-profit	1.0%	$350	$1,100
Business	1.0%	$525	$2,200

 

Closing Costs
CDFA charges pass-through fees for security recording/filing and for any attorney fees. In a typical loan, these fees total less than $250.

Other Costs
CDFA reserves the right to charge for special requests (e.g., loan reamortization; amendments that require changes to loan documents) or other extenuating circumstances that may result in additional direct costs or staff time.

Collateral/Guaranty
CDFA requires repayment guarantee and security on all loans, except as noted in certain Application and Program Guides. CDFA will accept a mortgage on real property, a UCC filing on the other assets of the borrower or a combination where warranted. For a business loan, a personal guarantee will be required from any owner of 20% or more of the company or where the credit history of the borrower is deemed to be at risk.

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