Sustainable Development Fund
Financing
Eligible Customers
You may qualify for one of SDF’s financing products, if you are:
- A company or venture that generates electricity using renewable energy sources.
- A manufacturer, distributor or installer of renewable energy, advanced clean energy and energy-conserving products and technologies.
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A company or organization that is an end-user of renewable energy, advanced clean energy and energy-conserving products and technologies.
Financing Products
Commercial Loans
SDF provides affordable, flexible business loans to manufacturers, wholesalers/distributors, retailers and service companies who want to finance equipment upgrades or electricity energy savings improvements to their plant/office facilities. For loan terms and conditions , visit the Financing Guidelines section.
Subordinated Debt
SDF provides subordinated debt financing in instances where your loan might not be readily financed by banks. Loans are usually subordinated to senior permanent financing from an independent institutional senior lender. Financing of up to $5 million is available through subordinated debt for a term of up to 12 years at a per annum interest rate of 5% fixed, subject to availability and satisfactory due diligence.
Royalty Financing
SDF’s royalty financing product is structured with a fixed monthly principal payment and royalty payments that return a multiple of the initial investment, plus stock warrants.
EPC (energy performance contract) Lease Financing
SDF provides flexible, long term, below market-rate financing to energy efficiency projects for large nonprofit institutions and commercial real estate owners. Energy efficiency measures such as efficient lighting, heating and air conditioning are typically designed and installed by an energy services company (ESCO) under an energy performance contract (EPC). Lease amounts range from $100,000 to $5 million for terms of up to 12 years, subject to availability and satisfactory due diligence. Benefits to the company from energy lease financing transactions include:
- Increase in net monthly cash flow
- Lower energy costs, consumption and demand
- New energy project costs paid solely from energy savings, and may be guaranteed by the ESCO
- No upfront capital expenditures
- No need to draw down on existing credit facilities or renegotiate terms of the current banking relationship.
Equity Investments
SDF provides equity investments through the Pennsylvania Advanced Industrial Technology Fund (PA-AIT), a limited partnership firm, created with Blue Hill Partners. PA-AIT provides equity capital to early stage sustainable energy ventures that are located or provide significant benefit to the Pennsylvania geographic market (particularly southeast Pennsylvania). Through PA-AIT, SDF leverages its existing financial and technical resources, promotes emerging renewable and advanced clean energy technologies, and diversifies its portfolio risk.
Target technologies are centered on renewable energy, energy efficiency and clean energy technologies. Through its investment, PA-AIT should acquire a significant position in each company and enable the company to bridge to follow-on financing. In addition to making financial investments, PA-AIT also works very actively with portfolio companies through its managerial investments.
To apply for SDF financing, submit the SDF Financing Request Form.
SDF Grants
In addition to our loans and equity investments, SDF also offers a limited number of grants. Visit the SDF Grants section for more information.
Consumer Energy Loans
While SDF does not provide consumer energy loans, interested customers can contact AFC First Financial Corporation of Allentown, PA. AFC First Financial is one of six financial institutions in the country participating in Fannie Mae’s Energy Loan Program. Their energy loans are available for PV, solar water heating systems and a variety of energy-efficient home improvements and appliances. Their energy loan is an unsecured, no-hassle consumer loan for up to $20,000 at an interest rate that is below the market rate of traditional unsecured consumer credit.
Questions? Call 215.574.5800 or email energy@trfund.com.