New federal funding competitions like the $6 billion Clean Communities Investment Accelerator through the Greenhouse Gas Reduction Fund have the potential power to transform communities and the green lending ecosystem. The CCIA is also a game-changer for Michigan credit unions, community development financial institutions and other community lenders. If eligible, each organization can receive up to $10 million in capitalization and $1 million in technical assistance for green lending programs in disadvantaged communities.
You might be thinking, “sounds great, but setting up and expanding this type of program takes more than money — it also takes time, people, and extra resources. How will organizations already at capacity make this work?”
We understand those concerns, and we’re here to help you realize the future envisioned by programs like the CCIA. As experts in green lending, we can plug your organization into our ready-to-go green lending ecosystem that includes a network of experienced contractors, a loan loss reserve, project management support and reliable relationships with other state programs and national organizations designed to strengthen the state’s green financing system.
Why Michigan Saves?
As the nation’s first nonprofit green bank, we’ve been changing the state’s energy landscape for more than a decade, completing more than $500 million in successful clean energy financing in the process. We know how powerful clean energy sources are, and we want everyone — no exceptions — to have access to their benefits. We also know that, for many people, these improvements are too costly. That’s where we come in. By partnering with lenders across Michigan and the nation, we offer favorable, low-interest financing to borrowers for the energy efficiency and renewable energy improvements they want and need.
As the CCIA makes green lending more accessible, we want to help you leverage these funds to offer unique financing with competitive rates and terms in the communities you serve.
Michigan Saves believes that contractor-driven residential clean energy programs are the best way to make energy financing available for everyone.
Because contractors are onsite checking a homeowner’s failed furnace, or discussing energy efficiency projects, they are well positioned to talk about—and match the homeowner with—the best available financing. For homeowners, the time and effort it often takes to even find a contractor can be frustrating. As a lender, you can prevent this frustration and simplify a potentially complicated process by giving residents access to Michigan Saves’ extensive network of authorized contractors. Because Michigan Saves performs quality assurance and control on both the contractors and projects, you can also rest assured your borrowers are receiving exemplary service.
As the Lawerence Berkley National Laboratory study shows, clean energy loans in Michigan are already low risk. Potential CCIA community lenders can take further solace knowing that the Michigan Saves loan loss reserve further alleviates this risk. Once a customer selects the eligible energy-saving home improvements they want an authorized contractor to install, they can apply for a loan from a Michigan Saves lender. Michigan Saves contributes a fixed percentage of each eligible loan to a lender-specific loan loss reserve fund. Lenders will have access to their specific loss reserve fund when a loan is at least 90 days delinquent.
Project management support
A partnership with Michigan Saves also comes with a ready-to-go clean energy project management ecosystem. In collaboration with the Connecticut Green Bank and Inclusive Prosperity Capital, Michigan Saves designed proprietary project management software that allows lenders and contractors to seamlessly track and communicate regarding the status of a clean energy installation. When a project gets stuck, the Michigan Saves customer service and outreach team is there to get things moving as soon as possible. When a project is complete, Michigan Saves follows up to ensure customer satisfaction.
Along with helping leverage your CCIA funds to offer unique financing with competitive rates and terms, Michigan Saves can also assist with connecting the dots between all Greenhouse Gas Reduction Fund opportunities such as the National Clean Investment Fund and Solar for All. By joining forces, we can ensure that we all get the maximum benefit for the longest period from these federal dollars.
This access to additional funding through the various GGRF competitions will allow us to accelerate the clean energy transition by shepherding once-in-a-generation funding to the communities that need it most.
Wondering how else Michigan Saves can help Michigan’s community lenders access these funds? CEO Chanell Scott Contreras has an extensive background connecting community lenders with these opportunities and leveraging them to transform green financing in Michigan. Stay tuned for more information!
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