Michigan Saves tells House subcommittee it can leverage $100M+ in loans if state sustains loan‑loss reserve

Todd Parker, chief operating officer of the nonprofit Michigan Saves, told the House Appropriations Subcommittee on Licensing and Regulatory Affairs, Insurance and Financial Services that the organization can support roughly $100 million to $120 million in annual loan volume at its current capacity if it can secure a loan‑loss reserve in the $5 million to $6 million range.

Parker said Michigan Saves is the nation’s first nonprofit green bank (incorporated in February 2009 with initial funding from the Michigan Public Service Commission) and uses a loan‑loss reserve as credit enhancement to expand underwriting criteria, lower rates and extend terms. He said the reserve is leveraged at about 30‑to‑1 and supports financing for residential measures (about 70% high‑efficiency furnaces, water heaters, air conditioning and boilers; roughly 20% windows, doors and insulation; about 5% solar PV)…