Participation Loan Process

How do Lenders Offer Participation Loans to their Customers?

Step 1: Become a Participating Lender

  • To become a participating lender in NYSERDA’s Participation Loan Program, complete and submit to NYSERDA the Participation Agreement [PDF]

Step 2: Determine Borrower Creditworthiness

  • Follow your lending institution’s standard underwriting criteria to determine borrower credit worthiness. Begin loan process if the borrower meets or exceeds your lending institution’s underwriting criteria.
  • The lender will send denial letters to borrowers that do not meet the lender’s standard underwriting criteria. In the event of a denial, the lender will send a copy of the denial letter to NYSERDA.

Step 3: Establish Loan Terms

  • Follow your lending institution’s standard underwriting criteria to determine the interest rate to be charged on your lending institution’s percentage of the loan.
  • 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.
    • Lenders may combine non-energy project funding for their portion of the Loan, as requested by the Borrower, with the eligible loan amount.  However, NYSERDA’s portion of the loan will remain bound by the cost of the energy efficiency project identified in the 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 terms that do not exceed 10 years with normal amortization.
  • Complete and sign the Project Participation Agreement [PDF], indicating the final terms of the Loan. Send signed Project Participation Agreement to NYSERDA at

Step 4: Loan Servicer Pre-Closing Review

  • Before closing on the loan, your lending institution will need to send NYSERDA’s Loan Servicer, Concord Servicing Corp., the completed and signed Project Participation Agreement, a copy of your lending institution’s unexecuted loan agreement with the Borrower, and a copy of the Borrower’s NYSERDA-approved Request for Financing Package via Concord's secure FTP site. Concord will complete its review within 3 business days of receiving the unexecuted loan documents from your lending institution.
  • Concord will confirm that the unexecuted loan documents comport with the Project Participation Agreement, NYSERDA program requirements and the borrower’s NYSERDA-approved Request for Financing Package.
  • Concord will notify your lending institution 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 participation loans prior to receiving confirmation from Concord that pre-closing review is complete and it is ok to close.

Step 5: Close on the Loan

  • Close on the loan and disburse funds to the borrower.

Step 6: Loan Servicer Post-Closing Review

  • Electronically transmit the executed loan closing documents and supporting data to the Loan Servicer for verification, using Concord's secure FTP site.  An Excel template entitled "NYSERDA SB SMComm Part Template [XLS]" must also be completed with the loan information and submitted to Concord. The Loan Servicer will complete its review within 2 business days of receiving the loan closing documents from your lending institution.
  • The Loan Servicer will confirm the executed loan documents have not been modified since pre-closing review.  If the executed loan documents are deemed acceptable, the Loan Servicer will submit invoicing information to NYSERDA to reimburse your lending institution for NYSERDA’s portion of the loan.
    • The Loan Servicer or NYSERDA will notify your lending institution if any data is missing or needed in order to release NYSERDA’s Participation amount or if the loan participation is rejected for failure to comply with the terms and conditions of the Project Participation Agreement.

Step 7: NYSERDA Remits Its Share of the Loan

  • NYSERDA will transfer its share of the loan to your lending institution based on the payment instructions provided by your lending institution in Exhibit B of the Participation Loan Agreement [PDF]. NYSERDA will transfer payment within 7 business days of receiving confirmation from the Loan Servicer.

Step 8: Lender Repays NYSERDA’s Share of the Loan

  • Your lending institution will repay NYSERDA’s pro rata share of the loan principal in consecutive equal monthly installments, as identified in the Project Participation Agreement, in each month during which a borrower has made a scheduled payment under the loan. Your lending institution will not be obligated to make payment to NYSERDA if no payment is received from a borrower. 
  • NYSERDA’s Loan Servicer will provide a statement with repayment instructions to your lending institution in advance of each scheduled payment date. Your lending institution must remit NYSERDA’s pro rata share of the borrower’s loan payments within 15 days of receiving loan payment from the borrower.