The Role of Financing Triple Bottom Line Brian Schneiderman NC Network of Grantmakers Annual Conference

2 What’s the Bottom Line Profit Business/ Banks Community/ People Social Non-profits

3 What’s the Bottom Line ProfitEquity/People Community Economic Development Community Development ProfitEnvironment Environmental Development

4 What’s the Bottom Line ProfitEquity/People Environment Triple Bottom Line

5 The Shift Can Be Difficult Organizations, businesses and individuals are strapped as is, yet they have the vision to break down the silos.

6 Innovation is Happening: Who Benefits? To connect organizations, businesses and individuals to these innovations requires EducationWill Financing Is there equal access to Green Opportunities that have positive economic, social and health benefits?

7 Spectrum of Finance Bank/CU DebtMezz/SubDebt Venture Capital Tax CreditsGrantsEquity Non-profit Lender Utility/Municipal incentives

8 Robust Debt Market Critical for Expanding Triple Bottom Line Access Bank/CU Debt Mezz/SubDebt Venture Capital Tax CreditsGrantsEquity Non-profit Lender Utility/Municipal incentives

9 Critical Drivers for a Lender Ability to repay –Energy efficiency: Are savings real? Greater than increased debt payment? –Match amortization to life of collateral Financial strength of borrower –Could they repay if don’t realize savings? Good Credit Score? Collateral –If had to foreclose, could collateral cover debt Is Project (loan) within Lender’s historical exp? –Lenders like standards based on market history

10 Current Challenges of Borrowing for Green Collateral –How much would a solar water system be worth in 3 years if you had to foreclose? How would you get it off the roof? Capacity to Repay –Are savings greater than increased debt payments –Typically need a longer amortization than depreciable life of collateral Prices on green innovations coming down but not yet low enough that can support debt

11 Current Challenges of Borrowing for Green Deal Flow –People get the concept but still hesitant to invest –Expensive to start new lending programs Education –Consumer: Green is exciting but overwhelming to know what to do –Lender: lenders like historical data It’s not easy yet

12 Bridge Concept to Opportunities to Market People get it the concepts. Prices are coming down. But the economics of most green investments make long-term sense. People are focused on short-term. So it’s not yet a “no brainer.” Now is the perfect opportunity to bridge the marketplace—and increase wider access.

13 Support Financing to Increase Access Tools to fill collateral gap. Low cost of capital to subsidize rate to Lender and borrower Energy Audits as educational tool Invest in human resources to build replicable models

Thank You! Brian Schneiderman Director of Commercial Lending (919)