Ethos Focuses on the Underserved Segment of the Green Energy Sector

Ethos Fund announced a new Green Energy loan program that offers collateralized loans between $250,000 and $5 million to commercial renewable energy developers of 10-200 kilowatt (kW) systems in rebate rich West Coast markets.

Operating on the new stimulus package legislation, Ethos provides financing for a diversified portfolio of niche market commercial renewable energy producers in areas such as solar and small wind.

"As we developed the business plan for Ethos over the past two years, our goal was to establish the company as the go-to financier for energy developers seeking funding for the deployment of renewable energy projects," said Adam Boucher, president of Adam Capital Inc., manager of the Ethos Fund. "With more than 35 years experience in asset based lending and extensive knowledge of the renewable energy sector, the Ethos team is adept at creating solutions to meet the needs of our borrowers and assisting them in overcoming the many challenges they face."

By loaning against a new class of assets -- the credits and rebates available for renewable energy production in the federal government's recent economic stimulus package, combined with existing incentives offered by states such as California, Arizona and Oregon -- Ethos can, in some cases, finance up to 100 percent or more of the cost of a renewable energy project even before it is deployed.

Historically, the niche market that Ethos serves -- renewable energy producers building systems between 10 and 200 kW -- has been underserved by the financial industry. The typical developer in this area of the green energy marketplace lacks the capital to deploy its renewable energy systems, a necessary step to qualify for rebates and other government backed financial incentives. Banks will not extend loans without proof of historical cash flow, venture capital and hedge funds generally seek more volatile growth potential, and large private lenders seldom consider loan requests under $5 million.

By recognizing the benefits available to developers of renewable energy systems as collateral -- especially those now offered through federal and state government stimulus packages, including rebates and renewable energy credits (RECS), incentives, mandates, power purchase agreements and equipment -- Ethos is able to finance these entrepreneurs. As an example, the American Recovery and Reinvestment Act of 2009, Section 1603, now allows tax credits to be exchanged for 30 percent cash payments directly from the Treasury Department, and the Treasury is mandated to make those cash payments within 60 days of request.

Because rebates and tax incentives are not earned until after a project is deployed, financing is critical for these projects to get off the ground. By providing the upfront financing to energy developers seeking to create renewable energy systems, Ethos plays an essential role in helping them capitalize on the recently approved government stimulus package.

"The lending that Ethos undertakes fills a void that allows the stimulus package to work to its full effect," noted Boucher, "ultimately creating jobs, reducing reliance of foreign energy and reducing greenhouse gas emissions."

Ethos Green Energy Asset Finance is a collateral based lender dedicated to a niche market in renewable energy asset finance, specializing in construction, project and operational financing. With over 35 years of combined experience in collateralized asset lending, law, taxation, and corporate finance, Ethos is the preeminent financier for energy developers seeking initial funding for the deployment of their RE systems.

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