Entrepreneurs
Working Capital for Business Growth
Let Climate Tech Finance help you find affordable working capital to scale your business
Even with the availability of federal infrastructure and climate funding on the horizon, entrepreneurs developing advanced energy systems and other emission-reducing technologies need access to capital today so they can bring urgently needed climate solutions to businesses and communities.
Venture and private equity funding are options, yet the need for working capital greatly exceeds the supply of this sort of capital. Commercial and community banks can help, except that many of them lack the climate tech industry expertise, business models, and risk assessment tools they’d need to evaluate new climate technology ventures.
To bridge this gap, Climate Tech Finance, in partnership with the California Infrastructure and Economic Development Bank (IBank), offers loan guarantees of up to $5M or 80% to de-risk the lending process for banks and open up new sources of capital for climate tech entrepreneurs.
How It Works
We’ve designed the process to be straightforward, quick, and easy. In most cases, funding is available within one to six months.
1. Initial Engagement
Begin by submitting an application and speaking with the Climate Tech Finance team.
2. Climate Tech Screening
The CTF Team will assess the technology’s
potential for reducing greenhouse gas emissions and its societal benefits to determine eligibility and ensure alignment with the CTF mission.
Timeline: 2 – 3 days
3. Financial Screening
Once climate tech eligibility is confirmed, submit financial information for review and feedback by the assigned CTF Finance Lead to determine financial eligibility.
Timeline: 2 – 3 weeks
4. Initial Review & Lender Preparation
Phase 1 Tech Review
The CTF Team will perform a qualitative preliminary assessment of the
technology and issue a letter regarding its pre-eligibility for the CTF program.
Timeline: 1 – 2 weeks
Financial Package
The CTF Finance Lead will offer technical assistance in preparing the financing package presentation for lending partners both within the CTF network and external financial institutions.
Timeline: Minimum 2 weeks
5. Final Review & Financing Execution
Phase 2 Tech Review
Once a lender begins due diligence, the CTF team will perform a quantitative evaluation of the technology’s readiness, GHG reductions, and associated social benefits.
Timeline: 2 – 3 weeks
Financial Due Diligence
- Once a lender is engaged, they will carry out due diligence and full credit approval.
- The hosting Financial Development Corporation (FDC) will then underwrite and approve the loan guarantee.
Timeline: Dependent on lender and FDC capacity
6. Closing and Annual Reporting
Funds are disbursed after the FDC approves the loan and finalizes the loan guarantee with California’s IBank.
The company must then submit annual reports detailing:
- Deployment progress
- Measured GHG reductions
- Jobs created
Standard Level of Service for Program Participants
For an early-stage business that is eligible to participate in the Climate Tech Finance program, you can expect financial support in these areas:
- Financial & Business Support
- Evaluation and feedback on your business plan.
- Identification of gaps and recommended solutions.
- Financing Preparation & Documentation
- Review of your financial documents (e.g., balance sheets, income statements, tax returns, and projections).
- Assessment of your company’s business package and advisement of its suitability to receive financing.
- Lender & Funding Connections (for businesses that pass the preliminary financial review)
- Technical assistance in assembling financing packages for potential lenders.
- Connection with identified financial institutions (commercial banks, CDFIs, credit unions) ready to offer debt financing.
- Connection with a local Financial Development Corporation that underwrites the loan guarantee on behalf of the State of California.
