Michigan Saves describes loan-loss reserve, programs and financing capacity to House subcommittee

Representatives on the House Appropriations Subcommittee on Licensing and Regulatory Affairs and Insurance and Financial Services heard from Michigan Saves officials about the nonprofit’s financing programs, loan-loss reserve and the organization’s capacity to expand energy-efficiency and renewable-energy lending in Michigan.

Todd Parker, chief operating officer of Michigan Saves, told the committee the nonprofit was incorporated in 2009 with seed funding from the Michigan Public Service Commission and described Michigan Saves as “the nation’s first nonprofit green bank.” He said the organization’s loan-loss reserve is the credit enhancement that lets lenders offer lower rates, longer terms and alternative underwriting for homeowners and businesses.

The presentation matters because Michigan Saves provides financing options that can reduce household energy bills and facilitate commercial energy upgrades; legislators asked about program scale, state appropriations and how the programs serve low- and moderate-income households.

Par…