Getting Started with CAP Project Funding
We provide capital for mid-market projects (new construction or retrofits, refurbishments or renovations) that fit our sweet spot. We strive to keep an open mind when strong projects and experienced developers are well prepared to secure funding, so long as there is social or environmental harm.
Although we can accept other risks that traditional financiers won’t touch, projects must have reasonably low commercial risk — that is, there has to be a verifiable plan for meeting your financial projections to demonstrate that the project is financially feasible. More
For a synopsis of our flagship Completion Assurance Program™ (CAP) funding, what it is, and how it works, please read this introductory letter or CAP funding tear sheet. Before contacting us, check that you qualify for at least 3 of the 4 CAP cornerstones — size, space (or sector), and stage of readiness, or just jump to Simple Steps.
For the “Security” cornerstone, CAP’s innovative structure helps developers secure advantageous terms without up-front costs or cash payments as capital “skin in the game” contributions to their own project (for full leverage, 100% funding), which relies on the developer’s ability to facilitate some type of “Completion Assurance” Guarantee (CAG). This is traditionally a financial instrument, most often a bank-issued Standby Letter of Credit, ideally for ~50-75% of the required funding, used only until the project has been commissioned to begin commercial operation (at which time it is allowed to expire). It is not insurance or bonding, as is often supplied by a sponsoring EPC firm, General Contractor, or other major vendor, nor is it a loan guarantee, as there is no loan involved, and this CAG/Security plays no role in enhancing the client’s credit. Some clients provide incentives to involve a “sponsor” to unlock CAP’s benefits and advantages. Landing page for sponsors
Developers can either facilitate their own guarantee or hire In3 to arrange one on a split fee basis. Know more (all solutions)
See the complete steps for funding from “inception to completion” via CAP funding. Eventually the complete package will be needed, but to streamline as much as possible, the Six Essentials boil down to just these 3 as the “onramp” to the road ahead:
1) Project name, total budget and funding request in $ or €
2) Uses of funds – categories and amounts / % (sample format), and
3) Proposed security: Two main DIY options:
A) If Product 1, DIY Standby LC, then also provide the issuing bank’s proposed SbLC verbiage and RWA letter using our templates.
B) If cash surety deposit, then please provide the proposed Authorization to Verify (ATV) letter.
That’s it! Do you have access, or could you gain such access, to qualifying Security?
- If yes or maybe a guarantee could be facilitated, please continue, learning more about these bank instruments to help guide you. Note the following conditions when CAP funding is the best or only option.
- If not, can you qualify for any of our DFY solutions, (products 4-6) via the various checklists and higher due diligence standards associated with each option? In3 Registered Affiliates can often provide initial vetting to help you determine this. Let them know which solution (product option 4, DFY SbLC, option 5, Ground Lease, or option 6, Strategic Advisory) you prefer.
The rest of this article is about how to arrange a Completion Assurance guarantee. In brief, either …
a) via your own holdings (company balance sheet or other assets)
b) via a “sponsor” (such as an EPC contractor, construction firm or major equipment supplier to the project), or
c) by hiring an advisor to help you obtain it.
More on guarantees as well as further instructions here.
In3’s CAP Profile Builder is where you will find all templates and tools to obtain a usable, bank-involved financial guarantee as well as to summarize your project finance request to pre-qualify.
Per the first 3 “essential” items above, we look forward to receiving your project name/type, total budget, uses of funds, and bank’s proposed guarantee (SbLC, usually) wording for our review. All templates available at-a-glance here.
Once prepared, use our “Onboarding” System to apply for CAP funding
If you have questions, want help with preparation, or wish to benchmark your project against our standards, we probably have additional tools available at no charge. Just ask us!
We will keep all information entirely confidential. Our review for CAP funding is free. We usually respond within 48 hours, but since Summer of 2021 we have been back-logged due to the COVID pandemic (presently about 2 weeks behind). Thanks in advance for your patience.
In the interim, if you have questions, please review our background materials, including
- Definition of “Completion Assurance (financial) Guarantee“
- Decision-making guide: Guarantee Options to select the best one for your situation
- How we (happily) disrupt traditional project finance (full-length version)
- Indexed Frequently Asked Questions (CAP), and Success Tips, to please make sure we’ve not already answered your initial question online, then (if still needed) Email or call us +1.831-761-0700 Ext 1, preferably during US Pacific Time business hours (9am – 7:00pm PT).