General Information and Structure
Cinnaire Lending (the CDFI arm of Cinnaire, previously Capital Fund Services) secured a contract with the MI State Energy Office to support a loan loss reserve for lenders financing efficiency projects. The loan loss reserve (LLR) covers up to 25% of the loan (just for the efficiency component if the project is broader than just efficiency). The financing is available only through Michigan Saves' authorized network of contractors. Michigan Saves manages coordination of additional incentives, e.g. utility rebates, tax credits and provides overall management of the program, including marketing and project inspection. Several lenders involved in the program were leasing companies, several were CDFIs and one was a PACE lender. Cinnaire solely provided the LLR. The money provided to Cinnaire by the State Energy Office for the LLR is a "repayable grant" – unspent dollars will be sent back at the end of the contract period. There have been no requests for compensation from the LLR to date. Other features of the program include the availability of up to 50% prefunding for approved contractors for transactions over $5,000 and low fees ($250-$500).