Conservation Finance: Use ecosystem market credits as collateral to secure loan

Historically it has been challenging for landowners to secure loans from traditional banking institutions to develop mitigation banks on their property. As a result landowners could either sell (fee simple) the potential banking site to a bank developer or sell the right to develop a bank to a group willing to partner with the landowner.

Now there is a third option available which potentially allows landowners to retain greater control over their property.  The concept involves using the credits generated from a mitigation bank as the collateral and repayment source for a loan to create their bank.

Restore Capital & 3Sister Sustainable Investments recently announced one such loan made to GreenVest LLC. View the complete press release here.

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