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Catalyst Loan

General Information and Structure

Inclusive Prosperity Capital
Lending Type: 
Non-profit lender

The Catalyst loan funds energy improvement projects for low- and moderate-income properties (where at least 60% of units serve renters at 80% or lower of Area Median Income) and is geared towards mid-cycle energy improvements. The Catalyst Loan provides unsecured loans that cover 100% of project costs, require no money down, and are repaid from energy cost savings for terms up to 20 years. Projected energy savings are used to cover the debt service of the loan. Other building upgrades may also be financed including health and safety remediation, resiliency and capital improvements. Inclusive Prosperity Capital is the spin-out of the Connecticut Green Bank, bringing its successful programs to new markets.

Active or Closed Program?: 
Years Offered: 
2018 - Present
Eligibility Criteria: 
5+ units; at least 60% of units must be designated affordable to households at no greater than 80% of Area Median Income (AMI)
Type of Financing: 
Loan Size Range: 
Type of Improvements Covered: 
Any activity that generates quantifiable energy savings. Up to 25% of loan proceeds may be used for non-energy efficiency improvements (structural, health/safety, etc.), provided there are sufficient savings to carry the costs

Financing Details

When is the Product Applicable?: 
Interest Rate: 
Various by term
10-20 years
Secured - UCC1 filing

Additional Information

Point of Contact: 
John D’Agostino at [email protected] / 860.257.2333
Program Notes: 
1.3x or greater project energy savings coverage ratio; 1.2x or greater energy savings ratio for solar-only projects. If a property is currently rented, owner must demonstrate 12 months of positive net operating income prior to subject improvements. Evidence of assets sufficient to pay six months’ worth of interest payments is also required. Rent restrictions: A one-year freeze on rent increases greater than the CPI cost-of-living may be required for properties where tenants do not pay their own utility bills, and the units are not currently governed by rent restrictions.