CollectiveSun Foundation, the philanthropic arm of CollectiveSun LLC, has announced the launch of a $4 million credit facility, in partnership with the Interfaith Solar Campaign, to boost solar projects for faith-based organizations.

With support from BQuest Foundation, an impact investing-focused private family foundation, and Cornerstone Fund, a nonprofit financial institution that finances faith-based impact projects, the credit facility will be guaranteed by the Community Investment Guarantee Pool. According to CollectiveSun Foundation—which will manage construction of the systems as well as own and operate them—the program aims to expand access to solar project financing specifically for faith-based organizations, which are often excluded from traditional financing options or have limitations on the amount of funding they can obtain for solar energy.

Funding will be provided via the credit facility’s three-party funding structure, which includes capital from two nonprofit foundations and a loan guarantee from a third nonprofit foundation. When a project is placed in service, CollectiveSun Foundation will manage all required tax credit filings and integrate tax credit gap financing into the structure. This approach allows for financing the tax credit gaps that would otherwise present a burden for a nonprofit. The fund will be piloted with projects in Oregon and Washington before expanding nationally.

“Faith-based organizations have historically been locked out of traditional financing options due to a lack of understanding and appreciation for the special connection and role they play in providing spiritual and critical social services in their communities. Where most lenders see risk, we see vibrancy and strength,” said CollectiveSun chief community officer Lee Barken. “With this new credit facility and thanks to our values-aligned partners, we can now support numerous faith-based organizations in achieving their renewable energy goals.”

(Photo credit: Getty Images/Tim Brown)