Capital Good Fund Announces Plan to Provide Green Loans to 40,000 Underserved Homeowners

Capital Good Fund Announces Plan to Provide Green Loans to 40,000 Underserved Homeowners

Nonprofit lender commits to deploying $1 billion over five years to tackle climate change

PROVIDENCE, RI – Capital Good Fund is launching an initiative to reach 40,000 underserved homeowners over the next five years with long-term, low-rate loans for electrification: solar panels, battery backup systems, heat pumps, induction cooktops, energy-efficiency, home health and safety measures, and more. The announcement comes on the heels of the latest International Panel on Climate Change (“IPCC”) report, the findings of which are sobering,  but also hopeful. While current emissions and policies put humanity on pace to far exceed the 1.5C of warming above which science says the planet is likely to experience irreversible damage, the technology needed to hit that crucial target already exists and is cost-effective. In the U.S., for instance, 77% of new electric-generation capacity over the next two years will come from wind, solar, and batteries. Still, it’s not enough: the IPCC says that investment in “the shift to a low-carbon world” is “about six times lower than it needs to be.”

“Not only must we ramp up investments in a clean economy, we must ensure that they are done equitably: climate change disproportionately impacts communities of color, immigrants, women, and the low-income, yet these are the populations least likely to benefit from a green revolution,” said Capital Good Fund Founder and CEO Andy Posner. “Whether we are talking about solar panels, electric vehicles, or heat pumps, underrepresented families are still not benefitting from these technologies, even as costs come down and financing options like our DoubleGreen Loan proliferate. Our five-year plan will result in cost savings, job creation, increased property values, improved indoor air quality, and reduced emissions.”

Capital Good Fund’s DoubleGreen Loan ranges from $2,000 – $60,000 with a 25-year term, rates starting at just 3.099%, no prepayment penalty, and can finance all aspects of residential electrification. While the organization serves all families, it has a focus on the aforementioned communities most impacted by rising energy prices, poor indoor air quality, and climate change. The five-year plan will yield significant positive social and environmental outcomes, such as:

• Reducing greenhouse gas emissions by 135,000 metric tons per year
• Saving homeowners $750 per year, for aggregate savings of $30 million per year
• Adding an average of 4.1% in homeowner property value
• Supporting or creating 6,000 jobs in solar and efficiency
• Deploying $1 billion in affordable capital in underinvested communities
• Deploy 225 megawatts of new residential solar-generation capacity
• Improving indoor air quality by addressing mold, mildew, lead, carbon monoxide and related home health and safety issues

“Hitting these ambitious but achievable goals will require significant amounts of catalytic capital, grants and/or donations,” added Posner. “Specifically, we are seeking an initial investment of $25 million in impact investments and philanthropic contributions to kickstart this initiative in Rhode Island, Massachusetts, Texas, and Colorado, with other states to be added over time. Of particular need is funding for investments in technology, community outreach, personnel, and credit enhancements.”

Individuals, businesses, foundations, financial institutions, investment advisors, and others interested in supporting this initiative can reach out to Andy Posner at andy@capitalgoodfund.org.

To learn more about participating in the DoubleGreen program as either an installer or a borrower, visit www.GoodFund.us/Solar or call 1-866-584-3651.

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About Capital Good Fund

Capital Good Fund is a Rhode Island-based nonprofit social change organization that uses financial services to tackle poverty and environmental injustice in America. Capital Good Fund offers low interest loans of up to $60,000 and one-on-one Financial Coaching for the lower-income residents of Rhode Island, Texas, Illinois, Florida, Delaware, Massachusetts, New Jersey, Connecticut, and Colorado. Since the COVID-19 crisis began, Capital Good Fund has closed nearly 3,000 COVID-19 Crisis Relief Loans of $300 – $1,500 with a five percent APR and a three-month deferment period. Since their founding in 2009, they have financed over 9,000 loans totaling more than $20 million with a 95% repayment rate and graduated over 1,800 people from their Coaching program. More at www.GoodFund.us.