Catalyst Construction & Term Loan
Finance & implement clean energy & resiliency improvements.
Catalyst Provides Flexible Financing That Works
The Catalyst Construction & Term Loan finances sustainable building solutions for mid-cycle properties, including affordable and market-rate multifamily housing, nonprofit-owned, and municipal buildings. Catalyst offers alternatively secured, flexible financing and is designed for properties that have restrictions on adding new debt.
Save money, enhance health and safety, improve resilience, and meet local building performance requirements with this affordable loan.
Catalyst will also fund the remediation of health and safety issues that must be addressed before implementing energy and resiliency measures.
Affordable and market-rate multifamily properties with five or more units | Co-ops condominiums, and rental properties, including mixed-use | Nonprofit-owned and municipal buildings
Maximize Savings with Catalyst Loans: Seamlessly Integrate Financing and Leverage Incentives
Catalyst Loans are alternatively secured and designed to work seamlessly with existing mortgages and other restrictions on adding new debt.
Experience the benefits of partially, or even fully, repaying your loan through energy and operating cost savings generated by your improvements. Projected clean energy savings typically include decreased electric, heating, cooling, water use, operations, maintenance, and insurance costs.
Improve your Building with a Comprehensive Set of Energy, Resiliency, and Health & Safety Measures
- Solar PV and other renewable energy systems
- Heat pumps and other efficient heating, cooling, and hot water systems
- Insulation, weatherization, and other building envelope improvements
- Remediating mold, asbestos, or radon when necessary for weatherization
- Roof replacement, electrical rewiring, or other repairs needed for building electrification or solar
- Building management systems and equipment controls
- Converting from oil to electric
- Energy storage solutions
- On-site electric vehicle charging stations
- Work required to achieve certification of high-performance building standards such as Enterprise Green Communities, LEED, Passive House, and others
- Others, as qualified by IPC and subject to underwriting
Bridge financing for utility incentives is not currently available.
Catalyst Offers Flexible Terms
- Competitive Rates*: Rates will vary by loan term, affordability, and credit quality
- Loan Term*: Up to 20 years
- Fee: 3% closing fee covering standard closing and legal costs
- Prepayment Penalty: May apply in some cases
*All terms, including rates, are subject to change. Products and services may not be available in all areas. All Loans are subject to credit approval and additional requirements will apply. This is not an offer to enter into a loan agreement. If approved, your terms may vary based upon your specific situation. Rates, fees, and other terms subject to change without notice.
Start Your Journey to a Better Building with Catalyst
Take the first step toward a sustainable future and invest in energy and resiliency improvements for your property with the Catalyst Loan. Discover the benefits of modern, cost-effective, efficient, and resilient solutions today.
Catalyst Loan Program FAQs
Who is eligible for the Catalyst Loan?
- Affordable and market-rate multifamily properties with five or more units improving energy performance and resiliency
- Co-ops, condominiums, and rental properties
- Buildings owned by nonprofits and municipalities, including community centers and houses of worship
What improvements can you finance with the Catalyst Loan?
- Energy performance improvements
- Building health, safety, or resiliency measures
- Examples: lighting, insulation, windows, HVAC upgrades, and solar PV installations
Can non-energy improvements also be financed?
Yes, but these improvements would be subject to underwriting.
Examples:
- Roof replacement related to solar installations
- electrical system upgrades
- utility line trenching
- Mold, radon, or asbestos abatement related to weatherization
What are the size limits for the Catalyst Loan?
Minimum: $50,000
Maximum: $2,000,000 (higher loan amounts may be considered)
Contact info@inclusiveteam.org for more information
Is the Catalyst Loan secured with a mortgage?
No, it is an alternatively secured loan.
In rare cases, IPC may secure the loan with a mortgage if other lenders allow or require it.
What is the maximum term length for the Catalyst Loan?
Up to 20 years, but cannot exceed the average useful life or life expectancy of installed energy-saving measures.
Can you use utility, state, or federal incentives to lower the loan principal?
Yes, IPC will help identify and apply all available incentives and grants to the project, including local utility, state, and federal incentives such as the Inflation Reduction Act.
Bridge financing for utility incentives is not currently available.
*Please note that terms and rates are subject to change.
How is the Catalyst Loan underwritten?
Based on total debt and projected income and expenses of your property, including projected savings from Catalyst-funded improvements.
How are projected operating cost savings determined?
- Anticipated reduction in energy and other costs over the estimated useful life or life expectancy of the financed equipment and measures
- Calculated savings include decreased electric, heating, cooling, water use, operations, maintenance, and insurance costs
Are there closing costs and fees for the Catalyst Loan?
- 3% closing fee (can be included in the loan amount)
- Covers legal costs for standard loan documentation and standard filing fees
- Borrower pays for any legal fees IPC incurs to negotiate non-standard language
Is there a prepayment fee for the Catalyst Loan?
Prepayment penalties may apply in some cases.
How does Catalyst handle rebates for installed equipment? Can it bridge the rebates?
Bridge financing for utility incentives is not currently available.
Does Catalyst have affordability requirements?
No, but properties serving low- and moderate-income residents, including affordable housing and naturally occurring affordable housing (NOAH), are eligible for lower rates.
How does the application process work?
- Submit basic property and financial information
- Receive personalized application portal if eligible
- Provide scope of work, budget, and projected energy and cost savings
How long does the project approval process typically take?
On average, it takes about 90 days for a complete application.
Do I need an energy audit to apply for the Catalyst Loan Program?
Often, an ASHRAE Level 2 audit is required to determine the scope and projected energy savings. An audit may not be needed if you have an eligible scope of work and a utility incentive commitment.
Contact IPC for more information.
Product Materials
Application Checklist
Fact Sheet
FAQ Document
Term Sheet
Start Your Journey to a Better Building with Catalyst
Take the first step toward a sustainable future and invest in energy and resiliency improvements for your property with the Catalyst Loan. Discover the benefits of modern, cost-effective, efficient, and resilient solutions today.
MORE PRODUCTS
- All Post
- Case Study
- Deal Spotlight
- News & Events
- RFPs
- Testimonial
Our Smart-E Loans make it easier for homeowners to afford clean energy upgrades