Tom Deyo followed Kragie, and began his comments with recounting the beginnings of the Montgomery County Green Bank (MCGB) with $14 million in 2016 provided by Montgomery County. From these humble beginnings, Deyo laid out the progress his group has made in moving local markets with a total of $25 million received from the County to date. With these funds, the MCGB first targeted the industrial commercial sector, looking at Michigan Saves as a model. With three lender partners initially lined up, Deyo noted it still took 18 months for two projects to be started and anticipated working with its lender partners on loans in the $50,000 range. Each project however exceeded expectations; one loan was for $200,000, a second was for $800,000. As well, the bank facilitated an additional $400,000 bridge loan, evincing its ability to be flexible in its lending practices.
Key to MCGB’s success, Deyo points out, have been two abiding aspects. First, is recognizing that each project is unique and offering one-size-fits all products will not work. Second, is conducting aggressive outreach in different markets. More recently, the bank has been developing a residential product that it will launch in early February 2020, partnering with two credit unions to provide loans. Affordable housing is another area into which the bank has expanded, which provided unique challenges with respect to capital stacks. MCGB conducted a technical assistance program, proposing a financing package that is being reviewed for approval. Community solar projects are also a new area of focus for the bank, partnering with Groundswell. Finally, the bank has moved to develop power purchase agreements (PPAs) for projects of less than 50 kw, working to launch this product in the spring of 2020.