Leaders from environmental organizations often ask us how we finance energy efficiency and renewable energy. So, this post is dedicated to you. Instead of simply providing individual answers, I want to share our response here on the Forum for the benefit of all our readers.
Below is a sampling of services and products we offer in addition to philanthropic grants available to nonprofit organizations, all supporting energy efficiency and renewable energy projects.
Services for business customers
- Clean technology financing Our technology and venture banking professionals work with pre-revenue stage companies and start-ups to build toward profitability, and also with established clean technology companies to finance and support operations with commercial banking products and services.
- “Green” building financing Commercial real estate teams provide expertise in financing resource-efficient “greener” buildings, including Leadership in Energy and Environmental Design (LEED®) buildings, ENERGY STAR, and more.
- Affordable “green” building financing Community Lending and Investments teams support “green” affordable housing through Low-Income Housing Tax Credits (LIHTCs), Historic Tax Credits, and New Markets Tax Credits (NMTCs). Teams locate optimal construction, tax credit equity, and investments in affordable housing, historical properties, and commercial properties in low-income communities.
- Renewable energy financing/”PPA’s” Environmental Finance provides tax equity investments and support through Power Purchase Agreements (PPAs) to help companies take advantage of renewable energy. The group financed more than $3.8 billion in renewable energy projects since 2006.
- Bonds and PACE financing Sustainable Public Infrastructure team, which is part of Government and Institutional Banking, provides financing and advisory services to help municipalities, universities, schools and hospitals finance sustainability projects such as energy efficiency, solar, waste-water treatment and more. This group supports Property Assessed Clean Energy (PACE) financing.
Products for business customers
- SBA 504
Small Business Administration (SBA) loans can be used for energy-efficiency related projects, and the U.S. SBA allows for larger debentures (their loan) for energy-related projects up to $4 million versus $1.5 million for a standard 504 loan.
- Solar Direct
Loan and lease financing structures for solar energy projects over $1 million.
- Wells Fargo Small Business Advantage Line of Credit®
A short-term, unsecured, revolving line of credit available in amounts up to $100,000. It provides newer businesses with flexible use of funds for working capital, cash flow needs, furniture and fixtures, inventory, or even payroll.
Unsecured loans with fixed rates and flexible repayment terms. Established small businesses needing an infusion of lump-sum cash use the Wells Fargo BusinessLoan term loan to fund business expansion, purchase fixed assets that generate business revenue, remodel facilities and fund business acquisition.
- Equipment Express®
Aterm loan or line of credit that allows business owners and real estate investors to borrow against the equity in their business property. This product can be used for financing property repairs and renovations, major purchases, and working capital.
Products for retail customers
- Home Equity Line of Credit
Long-term financing for energy efficiency or solar projects at home.
- Refinance and Renovate® and Purchase and Renovate® loans
Long-term financing for energy efficiency or solar projects at home. This product considers the value of the property after improvements are made.
- FHA Energy Efficiency Mortgage ProgramCan help Wells Fargo customers qualify for larger loans based on the value of their property after energy efficiency improvements are made.
Grant programs for 501c3, nonprofit organizations and universities
- Environmental Grants
Our Clean Technology and Innovation program funds clean technology incubators, accelerators along with research and development projects in support of building a framework for entrepreneurs seeing
- Our Environmental Solutions for Communities program is a five-year, $15 million relationship with the National Fish and Wildlife Foundation that supports projects related to urban ecosystem infrastructure, water quality, land conservation and sustainable agriculture and forestry.
I hope you find this information useful. For more information about energy efficiency, renewable energy or other environmental finance options, talk to your Wells Fargo banker today or submit your comment to us. As always, we’d love to hear from you.