ENVIRONMENT, SOCIAL AND GOVERNANCE
(ESG) LOAN PROGRAM
Interest Only Payments: The Borrower makes
GENERAL TERMS Interest-Only payments for the life of the loan
Term: Up to 100% Project Costs Financed for a only on the loan funds withdrawn. To
10-year term. prevent defaults during the first three years
of the loan, an interest reserve is created by
Interest Rate: 4.5% to 6.0% fixed for the term
adding those interest payments to the gross
of the loan. Rates subject to market conditions
loan amount. This pre-paid interest comes
prior to being locked.
out of the second installment (see Loan
Loan Amounts: Minimum loan is $50M with no Disbursement).
upper limit on a case-by-case basis.
Loan Disbursement: The loan comes in two Loan Fees: A 5% origination fee on the total
installments. The first is 20% of the loan and loan amount paid to the ESG group which can
comes within approximately 120-150 days of be wrapped into the loan amount. My
executing the Loan Agreement. The second is consulting firm receives up to a 1%
the remaining 80% of the loan and comes introductory fee. There is a 1.5% fee on the
within 90 days after the first installment. Bridge Loan provided by an investor (if this
option is selected). All fees are paid out of the
Deposit Terms: A deposit of 10% of the loan first installment payment. There is also a
amount is needed. It is placed in an Interest $30,000 payment to a third-party law firm for
Credit Account (ICA) in a Tier 1 Bank account preparing the loan legal documents. This
under your name. This deposit is held for 120- payment is paid when the Term Sheet is
150 days (until the first 20% of the loan is issued.
provided) and then is returned to the Borrower
plus Interest Earned on the Deposit (see Capital Repayment: Occurs at the end of the
below). The deposit triggers a 10x loan to the loan term.
Borrower. Equity Required: 25%-40% equity is required
Bridge Loan: A Bridge Loan for the deposit may by the Private Equity Group to provide the
be provided by an investor on behalf of the loan.
Borrower for a fee of 1.5%.
Interest Earned on Deposit: If the deposit is FOR MORE INFORMATION
made by an Investor, they will receive a 10% fee CONTACT
for the use of these funds during the 120-150 Joe Iovenitti
day period. This fee comes out of the first Iovenitti Asset Protection Consultants
installment (see Loan Disbursement). 510-290-9247
EXAMPLE – A $150M line of credit will require joeiov1i@outlook.com
a $15M deposit to be placed in an ICA at a top
tier bank for around 120 days. If the Investor
makes the deposit, they will receive $1.5M for
the use of those funds during this period.
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Disclaimer: rates and terms are subject to change without notice.
