Low- to Moderate-Income (LMI) Loan Loss Reserve

NYSERDA is dedicated to making energy improvements easy and affordable for all New York State energy consumers by supporting lending and financing programs that expand access to clean energy financing solutions to help New Yorkers take control of their energy costs.  

The LMI Loan Loss Reserve program provides loan loss portfolio coverage to qualified financing lenders, including local and regional banks, community-based lenders, and other financial firms to finance energy efficiency and renewable energy projects such as energy efficiency, geothermal and solar. The loan loss reserve fund is a form of credit enhancement, or a type of insurance, that helps lenders control for the risk that some loans may not be repaid. If a borrower defaults on a loan, the loan loss reserve will reimburse the lender, up to an agreed amount of risk sharing, for the defined loses on individual transactions, subject to an aggregate portfolio limit amount, to mitigate their losses.

Financing Provider Benefits

  • Mitigate risk through a credit enhancement provided at no cost to you or your customers. The first $50k to $1 million of each, enrolled financing agreement, based on sector can receive a loss reserve contribution, subject to total portfolio origination and maximum initial award amount.
  • Recover up to 90% in the event of a charge-off
  • Utilize the credit enhancement to approve a wider set of customers or offer more competitive rates and terms

Program Features

  • Supports a variety of loan products such as loans, leases, equipment finance agreements, service-agreements and savings-based payment agreements
  • Supports financing projects for residential low-to-moderate-income (LMI) consumers, small commercial (100 employees or less), not-for-profit and multifamily (5+ unit) buildings located in designated predominately LMI communities. For residential borrowers outside the designated communities, lenders will need to qualify borrowers based on income.
  • Finance companies set their own underwriting criteria
  • Projects funded can include a broad list of eligible categories of technologies. Download the complete list of the project categories.   
  • Participate at no cost to lender or borrower
  • Up to 25% of financing amount may be used for non-energy saving measures and still receive the credit enhancement

Who Can Apply

Financing providers that offer financing products to residential, multifamily, small businesses and non-profit for energy efficiency upgrades in designated predominately LMI communities.

How to Apply

Interested financing providers can apply onlineLink opens in new window - close new window to return to this page.. Before applying, review the Program Opportunity Notice (PON) and program guidelines for a detailed breakdown of participation requirements and project and financial product eligibility.


Please contact John Joshi or Heather Clark at NYSERDA, the program administrators, at NYSLLR@nyserda.ny.gov for more information, to discuss your product proposal, or to answer any questions.