Financing

Communities must often overcome serious financial and environmental barriers to redevelop brownfields. The concerns with liability, the time and cost of cleanup, and a reluctance to invest in older urban areas can deter private sector investment and prevent brownfields reuse. Public investment, combined with private financing, can provide incentives for brownfield property redevelopment.

 

The goals of public financing tools are:

  • Reduce lenders risk
    • Loan guarantees, companion loans
  • Reduce borrower’s costs
    • Interest rate reductions of subsidies, due diligence assistance
  • Improve the developers financial situation
    • Repayment grace periods, training and technical assistance
  • Provide comfort to lenders of investors
    • Loan guarantees, performance data
  • Provide resources directly

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