How to Offer an On-Bill Recovery Loan

How do Lenders Originate On-Bill Recovery Loans for their Customers?

Step 1: Determine Borrower Eligibility

  • Follow NYSERDA’s underwriting criteria to determine if the borrower is eligible for an On-Bill Recovery Loan through the program. NYSERDA’s underwriting criteria include:
    • Organization in existence at least two years.
    • Credit score of principal(s) of Small Business of 650 or higher.
    • No bankruptcies within the last 5 years.
    • No current judgments or liens in excess of $5,000
    • Debt service coverage ratio > 1.2 for three consecutive periods
  • Begin loan origination process if the borrower meets or exceeds NYSERDA’s underwriting criteria.
  • Borrowers who do not meet NYSERDA’s On-Bill Recovery underwriting criteria will not qualify for On-Bill Recovery financing. If the borrow does not qualify, your lending institution will mail a denial letter to the borrower within 2 business days of denial. The letter will include the reason for the denial and list the name, address, and toll-free telephone number of the credit bureau accessed to make the loan decision.  Your lending institution will also send NYSERDA a copy of the denial letter.

Step 2: Begin Loan Origination Process

  • Establish the total loan amount to be issued. Loan amounts must be based on the eligible loan amount identified in the borrower’s NYSERDA-approved Request for Financing Package.
    • NYSERDA requires lenders to obtain prior approval before closing on a loan in which the NYSERDA Participation amount varies by more than 10%.
  • Establish loan term that is ≥ the minimum loan term identified on the NYSERDA-approved Request for Financing Package but ≤ 10 years.
  • Contact one of the title companies under contract with NYSERDA to conduct a last owner search on the property identified on the Request for Financing Package. For current title company contacts, email

Step 3: Master Loan Servicer Pre-Closing review

  • Before closing on the loan, your lending institution will submit a copy of the pre-printed, unexecuted loan documents and a copy of the borrower’s NYSERDA-Approved Request for Financing Package to NYSERDA’s Master Loan Servicer, currently the Concord Servicing Corporation. Unexecuted loan documents must be sent to Concord via Concord's secure FTP site. 
  • Unexecuted loan documents will include:
  • Concord will confirm that the unexecuted loan documents identify the eligible loan amount, and the loan terms comport with NYSERDA’s program requirements and the borrower’s NYSERDA-Approved Request for Financing Package.  Concord will complete its review within 3 business days of receiving the unexecuted loan documents from your lending institution.
  • Concord will notify the lender should any deficiencies be found. 
  • Concord will notify your lending institution and NYSERDA when pre-closing review is complete and it is ok to close on the loan with the borrower.
    •  Your lending institution cannot close on On-Bill Recovery loans prior to receiving confirmation from Concord that pre-closing review is complete and it is ok to close.

Step 4: Close on the Loan

NYSERDA will inform the lender when to disburse the OBR loan proceeds, which will occur following the installation and inspection of the measures being financing.

  • Mail the unexecuted loan documents directly to the borrower.
  • Have the borrower sign and notarize the Note [PDF] and require all owners of the property to sign and notarize the On-Bill Recovery Program Declaration [PDF].
  • After the Note and On-Bill Recovery Program Declaration have been executed and notarized, disburse the loan proceeds to the borrower.

Step 5: Master Loan Servicer Post-Closing Review

  • Within five days of the disbursement of loan proceeds, transmit executed loan documents electronically to Concord for verification, using Concord's secure FTP site.  An Excel template entitled "NYSERDA SB SMComm OBR Template[XLS] " must also be completed with the loan information and submitted to Concord.
  • Mail the executed Green Jobs/Green New York On-Bill Recovery Note with original signatures to Concord, attention Isaac Sirine 4150 N. Drinkwater Blvd., STE #200, Scottsdale, AZ 85251
  • Send the signed and notarized On-Bill Recovery Program Declaration to the title company from which the last owners search was ordered
  • Concord will complete its review within 2 business days of receiving the loan closing documents from your lending institution
  • Concord will confirm that the executed loan documents have not been modified since the pre-closing review and that the loan conforms to NYSERDA’s underwriting criteria
  • If the On-Bill Recovery loan conforms to NYSERDA’s underwriting criteria, Concord will submit invoicing information to NYSERDA to reimburse your lending institution for the loan amount and a loan origination payment
    • Concord will notify your lending institution and NYSERDA of any OBR Loans presented for reimbursement that do not meet NYSERDA’s underwriting criteria. Your lending institution will be responsible for any losses NYSERDA may incur on loans that do not meet NYSERDA’s underwriting criteria.

Step 6: NYSERDA Reimburses Lender and Pays Origination Fee

  • NYSERDA will reimburse your lending institution for the amount of the loan you originate on behalf of NYSERDA and will pay your lending institution a loan origination fee for providing loan origination services. NYSERDA will transfer the reimbursement and fee to your lending institution within 7 business days of receiving loan closing confirmation from the Master Loan Servicer.
    • NYSERDA will follow the payment instructions your lending institution provides in Exhibit B of the Loan Originator Agreement to transfer funds.
    • Please note: NYSERDA processes electronic funds transfers once weekly (Tuesdays) for transfers to occur on Thursdays, unless otherwise noted.  Lenders must submit the required loan closing documents to allow the Master Loan Servicer sufficient time to review and approve before the Tuesday processing deadline to ensure timely funds transfer.