What is brownfield lending?
Unlike traditional and private lenders, brownfield lenders such as EFG specialize in financing the acquisition and remediation of contaminated at-risk land parcels commonly known as brownfields. EFG is set-up to work with borrowers and state regulators in efficiently and comprehensively assessing the various environmental risks and issues, which needed to be addressed before the deal can close.
What is the minimum brownfield project loan amount?
Generally $5 million, but we are flexible. We look at every potential deal and custom fit our strategy to meet each deal’s specifications.
Why are your brownfield remediation loan rates higher than traditional rates?
Contaminated properties have a much higher number of risks than traditional development projects. Loans with a higher risk profile have higher interest rates.
What types of brownfield remediation projects will you consider?
EFG will consider projects using a wide variety of remedial technologies, including those which may be emerging or
innovative in nature. EFG has evaluated projects with nearly
every imaginable form of contamination, including exotic contaminants such as Unexploded Ordinance (UXO) or Munitions
and Explosives of Concern (MEC). Examples of land contamination challenges EFG has encountered include:
• Hazardous Substances
• Petroleum Hydrocarbons
• Pesticides/PCBs
• Cyanide Wastes
• Flammable Solvents
• Asbestos
• Landfills
• Mining waste
• Underground Storage Tanks
• Priority Pollutant Metals
• Volatile Organic Compounds (VOCs)
• Semi-Volatile Organic Compounds (SVOCs)
Who originates the brownfield loan?
EFG is a direct lender, not a broker. We use our own capital and underwrite each loan to our own standards.
How important is the environmental due diligence in relations to the project?
The amount of environmental due diligence should be significant. The amount of environmental data should be beyond the Phase I and Phase II and well into the remedial planning phase or have a completed remedial action plan and should include remedial cost assumptions.
Can I use my own contractor/consultant for the remediation work?
Yes. However, EFG does evaluate the qualifications of the selected brownfield remediation contractor/consultant.
Does EFG require PLL Insurance and Cost Cap Insurance on each and every loan it makes?
PLL is required on all EFG loans. Cost Cap is evaluated on a case-by-case basis, depending on nature and extent of contamination.
How is EFG different than conventional or “hard money” lenders?
Brownfields (contaminated sites) are our specialty. While conventional and “hard money” lenders will typically not lend on brownfields
due to a lack of expertise, higher transaction costs, regulatory concerns or fear of liability, EFG embraces these environmental remediation projects and has
the distinctive expertise funding them.
For further inquiries that were not mentioned above, please contact EFG, the brownfield lending specialists. Or view the brownfield events you can find us at..