How do lenders issue loans through the program?
Applicants for the financing program are pre-screened by NYSERDA. Eligible small businesses and not-for-profits seeking financing through the program will provide their lender with a copy of their NYSERDA approved Request for Financing Package and a copy of the Participation Agreement [PDF].
To issue a loan through the financing program the lender will:
- Step 1:
Conduct a credit analysis of the applicant based on the lender's standard underwriting criteria.
- Step 2:
Establish loan terms with the applicant that do not exceed 10 years.
- Step 3:
- Complete and sign the Participation Agreement [PDF]
- Attach it to the NYSERDA approved Request for Financing Package
- Send to NYSERDA for execution by mail, email or fax:
|GJGNY SB/NFP PON 2293 NYSERDA
17 Columbia Circle
Albany, NY 12203-6399
- Step 4:
Close on the loan and disburse funds.
What happens after the lender closes on a loan?
NYSERDA uses a master loan servicer, Concord Servicing Corporation, to monitor and process payments. After a lender closes on a loan and disburses loan proceeds, the lender is required to enter loan information into the small business/not-for-profit template spreadsheet [XLS] and transmit it to the Concord Servicing Corporation, via a secure FTP site. The lender will also send copies of relevant sections of the lender's note agreement with the borrower to the Concord Servicing Corporation and NYSERDA via mail or overnight delivery.
For instructions on how to report loans to NYSERDA visit the financing program's loan reporting instructions page [PDF].
What happens after a lending institution reports the loan to NYSERDA?
The Concord Servicing Corporation will review the information to ensure the loan conforms with NYSERDA's Participation Agreement [PDF]. If there are discrepancies, the Concord Servicing Corporation will contact the lender for clarification.
When does NYSERDA send a lending institution its share of the loan?
Once the Concord Servicing Corporation accepts the loan, it will notify NYSERDA to send its share of the loan to the lender.
How does a lending institution repay NYSERDA's share of the loan?
After NYSERDA remits its share of the loan to the lender, Concord will mail monthly statements to the lender to the address provided in the small business/not-for-profit template spreadsheet [XLS] providing payment instructions for monthly payments due NYSERDA in accordance with the Participation Agreement [PDF].
Last Updated: 08/20/2012