Of course the Trust must perform standard underwriting and due diligence just like any investor or lender and if the project passes muster, they issue the appropriate credit enhancements backed by cash assets or other commercially valuable collateral which may be readily sold on the open market.
Essentially then we simply can then take the project backed by credit enhancements to our lenders and obtain a debt piece.
The loan may cover 100% of the project costs. The costs of the collateral- credit enhancements range from 2%-7% BUT those costs are TAKEN OUT OF CLOSE, so, THERE ARE NO UPFRONT FEES. There are NO GEOGRAPHIC RESTRICTIONS and NO SIZE LIMITATIONS.
The smallest credit enhancements they've ever issued was $20k!!!
Lastly, I might add, this same mechanism may be applied to ANY industry vertical of ANY project size for any project INTERNATIONALLY. Again, industry specific biographical wherewith is the most important criteria, and, even if the management team lacks same, that issue can always be solved by bringing in a third party(ies) which do. Asset builders, solar and wind farm projects have also been identified. Gas and oil projects as well.
