California has been in a leading role for electrifying transportation from smart cars to to school buses. The California Pollution Control Financing Authority, in partnership with the California Energy Commission, has been developing a program to help businesses finance the installation of charging stations. Not only will the state mitigate the lender's risk, but adds an innovative feature, rebating 10% or more to both the lender and the borrower when the loan is paid off.
Borrowers are rebated 10% of the loan amount or more after the loan is paid off.
Here are the details. The program funds the financial lender, a bank, credit union, etc, with a loan loss reserve (LLR) of 20% of the loan amount. The loan can be for any activity relating to the installation of a charging infrastructure including planning, permits, equipment, transformers, construction, signage, etc. The lending institution can provide the loan for any term, fixed or variable interest, secured or unsecured. On final payoff of the loan, the 20% LLR is split between the lender and the borrower. This is essentially a 10% rebate of the principle to the borrower!
If the installation of the charging station is in a multi unit dwelling, or in a disadvantaged community, the program expands the LLR to 30% of the loan amount. In this case after the loan is paid off, both lender and borrower receive 15% of the loaned amount.