Application Process
Application and Lending Process*
MnCIFA accepts applications on a rolling basis.
Our application and lending process begins with a preliminary review of your proposal through a pre-application form with a few basic questions about your clean energy project and financing needs.
MnCIFA offers three loan products:
• Direct loan
• Community loan fund
• Loan loss reserve
Timeline
The application timeline for MnCIFA to finance a project varies. MnCIFA will work to align our loan closing timeline to the needs of each project. On average, the timeline has been 3 to 5 months from full application to closed loan.
Preliminary Assessment
The pre-application form will help MnCIFA staff understand your proposed project and the extent MnCIFA financing could support the project.
• Staff will assess the extent the proposal fits the qualifications under state law for MnCIFA financing. Learn more about project qualifications.
• To help us understand the proposal, a member of MnCIFA’s Investment Team may schedule a time to talk with you to address questions and learn more details.
After our preliminary assessment, we may invite you to submit a full application. For some proposals, we may indicate the project needs additional information or may not meet MnCIFA’s required criteria under state law.
Full Application
After our preliminary assessment, we may invite you to submit a full application, including:
• Documentation: The full application will request a business plan, audited financial statements and other supplemental documentation.
• Due Diligence: Initial due diligence includes, but is not limited to, MnCIFA’s assessment of business potential, financial viability, debt service coverage, counterparty review, and a potential site visit.
Board of Directors Review
Once the initial due diligence is completed, MnCIFA staff will present the project to MnCIFA’s Board of Directors as follows:
• Credit Committee – This is a closed meeting of select Board members to review and discuss financial details of the proposed financing project. Based on the outcome of that review, the project may advance to full Board of Directors review.
• Board of Directors – This is a public meeting of the entire MnCIFA Board of Directors to review the proposed financing project and vote on the proposal.
Final lending contract
Once a proposal is approved by the MnCIFA Board of Directors, MnCIFA staff will work with you on final due diligence and negotiate the terms of the contract to close the loan.
Funds are disbursed to the project once the financing agreement and supporting documentation has been finalized and signed.
Loan servicing
Once the loan is closed and funds are disbursed, MnCIFA will service the loan, with regularly scheduled meetings with the project borrowers to:
• Monitor the use of MnCIFA financing in the project.
• Report on requirements of the lending contract.
These loan servicing actions are regularly reported to the MnCIFA Board of Directors for review and discussion.
*A note about confidentiality of application information:
MnCIFA adheres to the Minnesota Government Data Practices Act.
MnCIFA protects not-public information and would not disclose protected information, such as business trade secrets, and would not disclose information that would put your organization at a competitive disadvantage.
However, as a public financing authority, MnCIFA is transparent about projects receiving MnCIFA loans. Credit memos are presented by MnCIFA staff to the MnCIFA Board of Directors with non-proprietary financial information to the extent necessary for the Board to make a decision whether or not to fund the project. All Board of Director meetings are open to the public, as required by state law.
Questions?
Send us an email: info.mncifa@state.mn.us.