Underserved Community Benefits

IBank climate financing is ensuring the transition to a zero-emission economy includes low-income and disadvantaged communities.

IBank’s Climate Catalyst products offer additional benefits for businesses/projects that meet Climate Catalyst’s Underserved Communities Criteria:

• Climate Loan Guarantees — Lenders using IBank Climate Loan Guarantees for businesses/projects that meet the Underserved Communities Criteria (see below) can receive loan guarantee coverage up to 80%.
• Climate Loan Participations — Lenders using IBank Climate Loan Participation for businesses/projects that meet the Underserved Communities Criteria (see below) may receive an increase loan participation from IBank up to 60% of the eligible loan and/or IBank may offer a reduced interest rate on its share of the loan, resulting in a lower, blended interest rate for the borrower.,
• Climate Incentive Bridge Loans — Borrowers using IBank Climate Incentive Bridge Loans that meet the Underserved Communities Criteria (see below) may receive a 25-basis point interest rate subsidy.

Underserved Communities Criteria
An investment qualifies for the Climate Catalyst Program’s Underserved Communities criteria if it is made to a business or project in one or more of the following:

• CEJST-Identified Disadvantaged Communities: All communities identified as disadvantaged through version 1.0 of the Climate and Economic Justice Screening Tool (CEJST), released on November 22, 2022, which includes census tracts that meet the thresholds for at least one of the tool’s categories of burden and land within the boundaries of Federally Recognized Tribes.
• EJScreen-Identified Disadvantaged Communities: All communities within version 2.2 of EJScreen that fall within either (a) the limited supplemental set of census block groups that are at or above the 90th percentile for any of EJScreen’s supplemental indexes when compared to the nation or state or (b) geographic areas within Tribal lands as included in EJScreen.
• Geographically Dispersed Low-Income Households: Low-income individuals and households living in Metropolitan Areas with incomes not more than 80% Area Median Income or 200% the Federal Poverty Level (whichever is higher), and low-income individuals and households living in Non-Metropolitan Areas with incomes not more than 80% Area Median Income, 200% Federal Poverty Level, or 80% Statewide Non-Metropolitan Area Median Income (whichever is highest).
• Properties Providing Affordable Housing: Properties providing affordable housing that fall within either of the following two categories: (a) multifamily housing with rents not exceeding 30% of 80% Area Median Income for at least half of residential units and with an active affordability covenant from one of the following housing assistance programs:
  • Low-Income Housing Tax Credit;
  • A housing assistance program administered by HUD;
  • A housing assistance program administered by USDA under Title V of the Housing Act of 1949;
  • A housing assistance program administered by a tribally designated housing entity.

• Federally Recognized Tribal Entities: All Federally Recognized Tribal entities, which are considered disadvantaged regardless of whether a Federally Recognized Tribe has land.

Please note: IBank’s Underserved Communities Criteria aligns with the federal Justice40Initiative, which sets the goal that 40% of the overall benefits from investments in climate, clean energy, and other areas flow to low-income and disadvantaged communities. Refer to the Climate Catalyst Program’s Criteria, Priorities, Guidelines, and Financial Products for details.