Part #3 – Financing a Small Business in a Sustainable/Circular Economy

In this post:
Private Funding,
Government funding
….a list at the bottom of other posts in this Money for Small Businesses series

(Rathbone Greenbank Investor Day 2019 – 5 June) Discussed: How we decouple economic activity from unsustainable resource consumption and explore the role of investors, companies and policymakers in promoting a circular economy.

Money Available for Green Small Businesses? – Ideas when setting up Circular Rethinking projects

Considering the disruption from Linear to Circular production, where can a Small Business find money to handle these important changes?

5. Private Funding

Now a-days Circular Economy and sustainability projects are funded because they are for innovative products, new production processes or business models, and because of their contribution to sustainability…………..
Today, there are lenders that only money available for Green Small Businesses:

There are lots of them…The certification helps win such funding.  I would like to hear about your successes in this area if you care to share them.   I would be happy to hunt for a funding company in your region if you would like.

Money Available for Green Small Businesses

As to Goverment Green Small Business money……


6. Government funding

Governments do not only set restricting guidelines, they also encourage suppliers to comply at city, state and national levels.  They give priority to those companies that comply and are certified as sustainable suppliers.  (The documentation to show investors.)

As of 2017, several Green Banks in the United States have been established at the state and local level, with several more under way.  The banks’ first interest is energy, but they are advancing and should be approached for available money for Green Small Businesses.  Examples of existing “Green Banks” in the United States include:

Promoting a circular economy is at the top of the EU agenda; to promote sustainable economic growth, boost competitiveness, and generate new jobs.

One year after adopting an ambitious Circular Economy Package, the European Commission and the European Investment Bank (EIB) have established the Circular Economy Finance Support Platform, to help bring investors and innovators together.
http://www.eib.org/products/lending/intermediated/list/index.htm

Most important is to find more available money for Green Small Businesses.  The European Commission is improving the financing environment for small businesses in Europe.

And around the world:
Africa – How can the African Guarantee Fund (AGF) help Small Businesses overcome the money challenges that hold them back?
Canada – Business Development Bank of Canada (BDC) BDC defines green financing as sustainable lending (ESG), which involves both financing and consulting for firms focused on “triple bottom line” outcomes (social, ecological and financial).
France – Banque Publique d’Investissement (Bpifrance) Bpifrance provides a green loan (Prêt Vert) ; up to €3 million over seven years to Small Businesses at a subsidized interest rate, with no guarantees made against company assets.
Germany
*KfW KfW offers low-interest rate loans, with some repayment bonus, via lending banks to Small Businesses for investments in energy-efficient production systems, using industrial waste heat, heat recovery systems, and more.
The leader in renewable energy, is Germany, called “the world’s first major renewable energy economy.” Germany has a public sector development bank called KfW (Kreditanstalt für Wiederaufbau or “Reconstruction Credit Institute”), which is even larger than the World Bank. Along with Germany’s nonprofit Sparkassen banks, KfW has largely funded the country’s green energy revolution.
*GLS Bank Financing Partnership for Green Entrepreneurs
KenyaThe African Development Bank, organised a two-day workshop, which was held 19-20 February, 2019. The workshop brought together representatives from government and private sector to explore the investment and growth opportunities developing from the country’s climate change and green growth initiatives.

Italy
*Cassa Depositi e Prestiti (CDP) CDP wants to stimulate the sustainable development of the Italian economy – with several components directly relevant to ItalianSmall Businesses.
*Green Mini-bonds forSmall Businesses
*Intesa Sanpaolo Circular Economy (CE) Standard to develop a tool to assess “circularity” levels of a company, to track the effect of Intesa Sanpaolo’s support.
Japan – Development Bank of Japan (DBJ) 10 years ago, set up policies to support green and sustainable financing.
UK – Green Investment Bank (GIB) In 2012 the UK established the world’s first Green Investment Bank.
PakistanPakistan’s first financial institution JS Bank to be accredited by the Green Climate Fund (GCF), the world’s largest climate fund

What is your government doing? 
May I help you find out?

*This is a 3 part series with suggestions for financing a Small Business project:
Part #1 – Keep an Open Mind & Incentives offered by your Buyers
Part #2 – Documentation & CE and Sustainability Certificates
Part #3 – Private Funding & Government funding
and now an additional post about Waste Commodity tools.

(Remember our disclaimer: any company or website mentioned herein are only examples and should NOT be taken as recommendations or endorsements, unless specifically notated.)

 

Your eco-business concerns are the motive for my blog. Tell me what’s on your mind, good or bad.

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