Co-founder Sandy Wiggins, a developer of zero energy homes and former chair of the US Green Building Council, says, "Being a banker was never on my radar screen but as someone that's been involved in green real estate for a long time, it was clear the financial industry was a persistent barrier to making progress in greener building projects. The prospect of creating a bank that was the lubricant rather than the friction in the system for building a sustainable economy pulled me in."
Every dollar of E3 bank capital that's deployed will be analyzed for tons of carbon mitigated or avoided. e3 will give lower interest rates for loans for higher levels of sustainability: a green building loan, for example, will get a lower interest rate if it achieves LEED Platinum than if it achieves a lower LEED certification of silver or gold.
In contrast to conventional banks, whose loan decisions are based on up-front costs and a borrower's ability to pay, e3bank's LEED-accredit loan officers will understand the benefits of paying more up-front to gain longer terms energy savings and other environmental benefits. Loans will be available for retrofitting buildings to incorporate energy conservation and renewable energy, and loan officers will even be able to advise customers on the latest green building innovations.
ShoreBank (Chicago, IL)
www.sbk.com
ShoreBank opened its doors in 1973 as the first community development and environmental bank in the US and now has $2.7 billion in assets. The bank, which serves the social needs of the Chicago area by lending to urban re-development projects, was awarded a $35 million New Markets Tax Credit allocation from the Recovery Act. It's using the resources to encourage property owners in Chicago, Cleveland and Detroit to do energy retrofits and to incorporate green design in renovation and construction projects.
"By facilitating investment in energy efficiency and alternative energy, we can keep utility costs manageable, promote green collar jobs, and stimulate economic activity in underserved areas," said Joel Freehling of ShoreBank. "Despite the economic climate, sustainable companies like Indie Energy (Chicago, IL) in the geothermal industry and Kilroy's Home Insulation (Cleveland, OH) are solid financial performers and have added and invested in new employees, without any additional stimulus," he added.
ShoreBank has invested over $3.5 billion in local communities to finance the purchase and renovation of 55,000 units of affordable housing and the creation of 11,000 new jobs for local residents.
ShoreBank Pacific (3 locations in Washington, Oregon)
www.eco-bank.com
In 1997, the first US green bank opened to finance the "conservation economy of the Pacific Northwest" by supporting local green company businesses and projects. The bank attracts depositors from around the country and lends to small businesses that are pursuing sustainable practices. The People's Food Co-op in Portland, OR. is a typical borrower: while they would have had a hard time convincing a conventional bank to loan a co-op funds for a new building, ShoreBank gave them $388,000 precisely because of that and the fact that they would incorporate green building practices. Examples of typical borrowers include an environmentally focused school, expansion funds for an organic dairy, and a certified wood furniture manufacturer. The bank also assigns staff to help potential borrowers reduce waste and pollution, and conserve natural resources.
