Microloans for Green Business

[Community Development Banking List]

Original message from: theresakennedy2001@hotmail.com



How can the economically disadvantaged create businesses through micro
credit schemes and apply them to businesses that promote sustainable
communities?

Any insight on programs out there that are working? Success stories?

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[Community Development Banking List]

Original message from: GHarman@accionusa.org

I would love to hear of any creative underwriting approaches people
are using. With savings accruing over time and little to no impact
immediately how can we support those who want to green their
businesses when they are already cash constrained. We want to do
something other than offer lower rates (we have no offsetting
subsidies from govt or philanthropy).
thanks

Gina from ACCION USA

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On Feb 14, 2010, at 8:02 AM, "THERESA KENNEDY" <theresakennedy2001@hotmail.com
> wrote:


How can the economically disadvantaged create businesses through
micro credit schemes and apply them to businesses that promote
sustainable communities?

Any insight on programs out there that are working? Success stories?

Hotmail: Trusted email with powerful SPAM protection. Sign up now.
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[Community Development Banking List]

Original message from: theresakennedy2001@hotmail.com


http://www.dsireusa.org/ you can go to this website to ensure they are taking advantage of these incentives. You can also work with the utility company (see Portland Clean Energy Fund as a model) to develop a revolving loan trust for energy upgrades. as people pay of the loan it is then used again on other properties and the payment being made to the utility company usually = what they were paying in utility cost. so their utility bill is in essence a loan and the cost of the kw used are reduced due to the upgrades. It should take about 4 years for the upgrades to be paid off with this model==loan paid through electric bill.

http://www.solaramericacities.energy...evelopment.pdf

Theresa Kennedy

From: GHarman@accionusa.org
To: theresakennedy2001@hotmail.com
Subject: Re: Microloans for Green Business
Date: Sun, 14 Feb 2010 09:24:30 -0500
CC: melanie@friedmanassociates.net; communitydevelopmentbanking-l@cornell.edu

I would love to hear of any creative underwriting approaches people are using. With savings accruing over time and little to no impact immediately how can we support those who want to green their businesses when they are already cash constrained. We want to do something other than offer lower rates (we have no offsetting subsidies from govt or philanthropy). thanks
Gina from ACCION USA

Sent from my iPhone
On Feb 14, 2010, at 8:02 AM, "THERESA KENNEDY" <theresakennedy2001@hotmail.com> wrote:



How can the economically disadvantaged create businesses through micro
credit schemes and apply them to businesses that promote sustainable
communities?

Any insight on programs out there that are working? Success stories?

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[Community Development Banking List]

Original message from: clearned1@gmail.com

Gina and Theresa and all,

I am currently seeking development funding for a model that addresses this
from a standpoint of creating a carbon market that serves local economies.
This is not the end all solution however
http://www.greencommunitiesonline.org/green/offset/ green communities has
modeled a great approach for an internal carbon market. This is a starting
point in looking at a means to assist small businesses and community
development projects and neighborhoods.

We will be creating a State wide community carbon fund that will invite an
assortment of funders to the fund such as:

Local, State and federal government that are interested in job creation and
carbon reduction.
Ask for participation of green contractors to share a small percentage say
5% of their contract revenues to the fund.
Utilize carbon offset calculators and weave a story constantly about the
outcomes of local carbon offsets for improving our local communities and the
well being of each other while addressing climate change issues.

The fund will aggregate carbon savings in the neighborhoods through a
webplatform interface with public utilities.
It will create a means to move cash from carbon into non-profit projects
similar to green communities
It will assist small businesses particularly low income small businesses
with cash grants for carbon.

We will likely work the carbon offsets from an internal pricing valuation.
However we also will be working with an exciting new platform that will be
launched in the next 60 days that everyone here will benefit from
participating with or being aware of which is www.missionmarkets.com In
addition to raising debt and equity capital for socially and environmentally
responsible CDFI's, SME's there will be an opportunity to trade
environmental credits and carbon credits and to set up offset projects. This
is a trading platform with good intentions and we all will need to bring the
stakeholders to the platform to make it work.

We are also designing green loan plans designed to address underwriting
risk. In order to do this we are working with other non profits and
government as well as the private sector (community banks and CU's) However
this too is a development project in the fundraising mode. The model you
shared of Portland is good in that it works on the utility billing
structure. Most utilities do not want to do that.
Its important that we use public funds to leverage private lending and
create viable ways for citizens to directly partner with lenders to provide
a steady stream of capital. Portlands 3 million could disappear in a month
or a week.

When you combine these together, you have a tool kit for addressing
different needs. Measuring carbon saved is key and utilizing a lifetime
carbon saved scheme is important to justify enough capital infusion in low
income and small businesses. Given that green investments pay for
themselves it is a matter of having loans that reflect the payback.

I would be willing to set up a listserve for those who are interested in
working on this together. I have models and I am sure I would benefit from a
larger community of expertise bringing different perspectives. It would
focus on grounding these details over time and discussing other models. I
will be setting up a local advisory board for the carbon fund, however
having a larger community interacting with us would be valuable. Send me a
note with Carbon Fund listserve in subject heading, a bit about you and your
interest and I will invite you to a yahoo discussion list.
Best Regards,
Chuck Learned
Tri Local Returns
Program Developer
608 712-2679


On Sun, Feb 14, 2010 at 8:24 AM, Gina Harman <GHarman@accionusa.org> wrote:

I would love to hear of any creative underwriting approaches people are
using. With savings accruing over time and little to no impact immediately
how can we support those who want to green their businesses when they are
already cash constrained. We want to do something other than offer lower
rates (we have no offsetting subsidies from govt or philanthropy).
thanks

Gina from ACCION USA

Sent from my iPhone

On Feb 14, 2010, at 8:02 AM, "THERESA KENNEDY" <
theresakennedy2001@hotmail.com> wrote:


How can the economically disadvantaged create businesses through micro
credit schemes and apply them to businesses that promote sustainable
communities?

Any insight on programs out there that are working? Success stories?

------------------------------
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