These are loans that are administered by third parties. These are usually financial institutions, such as banks (does not include the state and local government). These loans are geared for renewable energy improvements and energy efficiency.

These loans can be structured in many ways, and often look like commercial loans. However, they have more attractive terms. There are several ways to structure the loan: as a business loan, short term loan, unsecured personal loan, or longer term secured loan with a lien/claim on property. There are some third party programs that allow for on-site approval of unsecured financing.

Advantages Disadvantages
Very flexible and can be structured to meet specific goals
Very detailed credit analysis on secured programs to verify the borrower's ability to pay.
Government entities can work with financial institutions, which tend to have greater lending experience
Significant amount of rejections by lenders during the underwriting process
Can leverage private capital
Security or collateral may be required