Climate Loan Guarantees

Designed to support loans made to qualifying businesses and projects focused on the buildout of climate technologies and solutions

1. Climate Tech Finance Loan Guarantee

For loans up to $20 million / Maximum guarantee amount $5 million

The Climate Tech Finance loan guarantee is a first-of-its-kind partnership between IBank, the Bay Area Air Quality Management District, and California’s seven Financial Development Corporations. The program offers loan guarantees of 80%, up to $5 million, on loans of up to $20 million, with a 7-year term.

Borrowers’ business/project must have a climate impact; however, the program is technology- and sector-agnostic.

Climate Tech Loan Guarantee Terms:

Maximum guarantee amount: $5 million
Loans up to $20 million
Guarantee term: Up to 7 years
Guarantees up to 80% of the loan
Interest rate and qualifications determined by the lender

Climate Tech Loan Guarantee Criteria:

Be a small business (fewer than 750 employees)
Have a climate impact
Be ready to commercialize in California

View more information on the Climate Tech Finance Loan Guarantee

2. Climate Loan Guarantee

No loan size limit / Target guarantee amount between $5 million and $30 million.

The program offers loan guarantees of up to 80%, with loan guarantees between $5 million and $30 million, with no loan size limit, for the life of their loan. IBank will consider guarantees above $30 million for particularly high-impact, creditworthy opportunities.

To be eligible, the borrower’s project, activity, or technology must fall within the Climate Catalyst Program’s Sectors of Focus, and meet the Six-Factor Eligibility Criteria.

Climate Loan Guarantee Terms:

Maximum guarantee amount: Targeting $30 million, with a maximum of $100 million for particularly high-impact, creditworthy opportunities
No loan size limit.
Guarantee term: Up to the life of the loan
Guarantees of 70%, or 80% for loans to businesses and projects in underserved communities.
Interest rate and qualifications are determined by the lender
Annual servicing fee: Between 0.50% and 1.00% the amount of the outstanding guarantee

Climate Loan Guarantee Criteria:

Reduce greenhouse gas and other air pollutant emissions
Use a commercial technology, defined as technologies that have been deployed for commercial purposes at least three times for a period of at least five years each in the United States
Eligible under the Climate Catalyst Program’s National Clean Investment Fund Financing Plan. Please refer to the Sectors of Focus webpage
Complies with applicable federal requirements. Please refer to the Federal Cross-Cutting Requirements webpage

View more on the Climate Loan Guarantee’s policies and procedures

Eligibility and How to Apply

Loan Eligibility: For all IBank loan guarantees, loan terms are determined by the lender. IBank can guarantee a variety of loan types, term and rate structures, security profiles, and amortization schedules. Specific eligibility criteria for each loan guarantee product are outlined above. Projects must be located in California.

Lender Eligibility: The following lenders are eligible to register and enroll loans in IBank’s loan guarantee programs:

Federal or state-chartered banks
Savings associations
Certified Community Development Financial Institutions (CDFIs)
Credit unions
Farm Credit System Insurance Corporations (FCSICs)
Other financial institutions, with IBank exception

Lenders can become certified to use IBank’s loan guarantee programs on an ongoing basis.

View more about lender eligibility and enrollment.

Loan Enrollment Process

Lenders certified to enroll loans in IBank’s loan guarantee programs can enroll loans at any time; however, coordination between the borrower, lender, and IBank will ensure the lender and borrower receive the most-appropriate loan guarantee.

Businesses, nonprofits, governments, and other borrowers seeking a guaranteed loan can either seek a loan through an existing participating lender or ask their existing lender to become certified to use IBank’s loan guarantee programs.

View more about enrolling loans in the Loan Guarantee Program.

Frequently Asked Questions

IBank Climate Financing

Q: I am a borrower seeking a loan. How do I get a guaranteed loan?

A: Borrowers seeking loans for qualified projects or working capital can reach out to any enrolled lender and begin an underwriting process with that lender. Currently, IBank is still enrolling lenders into the Climate Loan Guarantee program.