Community & Business Solar Loans can be used to fund construction loans, loans to enable investment tax credit safe harboring, or working capital for qualified solar businesses.
The Center for Rural Affairs is seeking to make an initial $10 million in loans to support solar projects up to 10 MW in size. Funding for this program comes from a loan that the Center for Rural Affairs received from Coalition for Green Capital under the National Clean Investment Fund program.
Eligibility and limitations
- Construction loans for community or business solar arrays up to 10MW in size.
- Funded projects must conform to Build America, Buy America (BABA) and Davis-Bacon and Related Acts (DBRA) requirements when applicable.
- Projects that already meet these requirements due to requirements from other funding sources are good candidates.
- Loans less than $250,000 are generally exempt from both BABA and DBRA.
- For projects located in Nebraska, with limited ability to consider well-qualified projects elsewhere.
Use of funds
- Construction loans (primary focus).
- Loans to enable investment tax credit safe harboring.
- Working capital for qualified solar businesses.
Rates and fees
- Rates of 4% to 7% with rate determination based on risk, complexity and loan size.
- Loan closing fee of 1%. Fee waivers/reductions may be considered for well-qualified projects.
Terms
- For the construction period
- In select cases, conversion to mini-perm or permanent financing
Loan limits and participations
- Loans from $100,000 to $3,000,000 with exceptions for well-qualified projects.
- Can be structured as a participation with an existing construction lender (preferred for larger loans).
Collateral requirements
Loans may be collateralized by equipment or assets to be purchased, business assets, corporate guarantees, or personal guarantees.
Underwriting process
Loans will be underwritten based on borrower capacity, borrower past performance, and project-level financials.
Required documents
A partial list of required documents appears below. Each loan is unique, and additional documents may be required based on the circumstances of the loan.
- Business and/or project financial statements such as:
- Evidence of other sources of construction financing
- Evidence of permanent financing
- Project pro forma
- Schedule of project sources and uses
- Business plan and/or project plan
- Business tax returns and/or financial statements
- Personal tax returns and/or personal financial statements for loan guarantors
In the case of participations, document requirements may be fulfilled in part or in full through an information-sharing arrangement with the existing lender.
For more information, contact Daniel Padilla, [email protected], 402.380.3681.
