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Industry Products & ERB Funding Terms

ERB Program Guide

In Spanish

Water and Wastewater Treatment Facilities

ERB WWWTF Funding Program Guide
In Spanish

Hospitals and Related Healthcare Facilities

ERB Hospital Funding Program Guide        
In Spanish


Haga click aqui para la version en espanol.

General Information

The initial round of funding was originally opened to Water and Wastewater Treatment Facilities on October 20th, 2014.  The subsequent round opened to include Hospitals and Related Healthcare Facilities in October 2015.

Applications will be accepted on a rolling basis, and reviewed and brought for Board actions on a first-received, first-ready basis.  There is no longer a $65 million set-aside specific for Water and Wastewater Treatment facilities. There is $200 million total of ERB funding for Water/Wastewater and for Hospital applicants and applications will continue to be accepted on a rolling basis, and reviewed and brought forth to the Board on a first-received, first-ready basis.  The application window for Hospitals and Related Healthcare Facilities will remain open until September 30, 2016 or until funds are obligated.  It should be noted that ERB applications will be considered based on availability of funding, prioritization of other sectors, CDBG-DR funding limitations, or other factors.

The following terms, limits, and scoring are applicable to both sectors.

Financial Product Terms

The financial product terms for ERB funding are as follows:

1.  Funding – ERB will provide 100% of unmet funding needs for an eligible project, after equity contribution applicable to for-profit owned projects, (i.e., the ERB may finance the entire funding gap, after applicable equity contribution is satisfied.)  The amount of unmet need will be established through the federally required duplication of benefits/unmet need analysis.  The percentage of the funding gap (remaining after equity is applied, if applicable) to be provided in the form of a grant/forgivable loan will be determined through the underwriting process and the balance will be provided through an amortizing loan.  The terms of the financing are described below.

Grant/Forgivable Loan – Public and not-for-profit applicants - The percentage of the unmet funding need to be provided as a Grant/Forgivable Loan is calculated by:

  1. a grant/forgivable loan (not to exceed $25 million) for all eligible Resilient Costs, as described in the Program Guide;
  2. a grant/forgivable loan equal to 40% of the remaining eligible project costs;
 
  • Grant/Forgivable Loan: For-profit applicants - The percentage of the unmet funding need, after any applicable equity contribution, to be provided as a Grant/Forgivable Loan is determined during the underwriting process and based on program criteria, which may include but not be limited to, ownership structure, project economic feasibility, rate of return, and other policy considerations.
 
  • Amortizing Loan Terms.  Any balance on the loan will be governed by the following terms:
    • Public and not-for-profit applicants – 2% fixed interest rate.
    • For-profit applicants - Standard interest rates will be as low as 2% fixed interest rate. Note that project specific interest rates will be determined based on project underwriting in conformance with HUD requirements for analyzing rate or return and ensuring that the owner/business is not unduly enriched.
    • Collateral – None required.
    • Up to 20-year term, based on useful life of majority of assets.
    • Up to 2 years’ principal and interest moratorium starting from closing, according to the following:
      • Moratorium duration will be the length of the construction period, but will not exceed 2 years, but can be extended as set forth below.
      • Moratorium is included in loan term, not in addition.
      • Up to two, six-month extensions of the moratorium may be provided based on evidence of significant progress toward project completion, and where delay was unavoidable or unforeseeable.   In no event will the moratorium, as extended, exceed three years.
    • Debt Service Coverage (DSC) Ratio:  There is no DSC for public and not-for-profit applicants. The DSC ratio requirement for for-profit applicants is 1:1.0 (including loan principal anticipated to be forgiven)..
  • Equity Requirements
    • No equity contribution for publicly-owned, publicly-controlled or not - for-profit applicants.
    • Equity contribution of at least 10% of total project costs for for-profit applicants, based on project underwriting in conformance with HUD requirements for analyzing rate or return and ensuring that the owner/business is not unduly enriched.
2.  Disbursement – Disbursement will follow EDA’s standard process and generally include:
 
  • Submission of invoice with sufficient documentation of costs incurred or payments made.
  • Verification of expenses and cost reasonableness review, including site visits as necessary.
  • All disbursements to CDBG-DR-funded projects will be subject to meeting all applicable HUD requirements.
 

Funding Limits:

There is no maximum project award for this funding round except for a per project cap on electricity storage.


The total available for electricity storage such as batteries to store onsite renewable electricity production is $5 million, and each project will be limited to a cap of $500,000 for electricity storage.

Scoring

Projects will be evaluated based on a comprehensive risk analysis framework that incorporates the following.  All projects will also undergo a technical review and underwriting analysis.

1. Technology Efficiency/Economic Cost Effectiveness
2. Low Moderate Income Area Benefit
3. Most Impacted Communities Served
4. Readiness to Proceed
5. Criticality
6. Microgrid
7. Facility Energy Efficiency