By: Casey Bell, Chief Impact Officer-Pacific Community Ventures
The opportunity presented by the EPA’s historic $27 billion in grants for the climate economy through the Greenhouse Gas Reduction Fund (GGRF) is arriving at a critical moment where the U.S. is facing two inter-related systemic risks: the existential risks presented by the climate crisis, and the economic & social losses accumulating from persistent racial and gender wealth gaps.
Addressing the climate crisis without addressing these wealth gaps risks worsening adverse outcomes in health, livability and economic prosperity in the underestimated communities already experiencing disproportionate climate impacts. The federal mandate to ensure 40% of climate dollars are used to support these communities is a promising start to a conversation around how we do things differently. We at PCV are feeling hopeful given the allocation of GGRF dollars poised for disbursement to the CDFI industry, a field created to serve these communities most.
Yet, obstacles lie ahead as we work to direct resources toward “community readiness” to absorb this massive investment in a way that recognizes both climate resiliency AND economic development benefits in historically underestimated and underinvested communities. We must work intentionally to ensure that dollars deployed into infrastructure and the built environment continue to reinvest in, and build wealth for, low and moderate income (LMI) and historically redlined communities, immediately and decades after the checks are cut.
To answer this challenge, PCV is thrilled to announce the launch of our Climate Justice Mobilization Fund. The fund will include new lending products paired with technical assistance tailored for small businesses working to accelerate the climate transition. We are committed to fostering a more equitable and inclusive approach to climate action by ensuring that Black, Indigenous, Latinx, AAPI, womxn-owned and other underestimated climate-related businesses have equitable access to these funds.
Through two distinct loan offerings, PCV aims to bridge the gap between project readiness and project payment, empowering small businesses to bid on and undertake projects they would otherwise be unable to pursue due to liquidity constraints and persistent delayed payments from project owners. Affordable, flexible loans will be made available with the intent to position underserved small businesses to participate in the emerging climate economy, fostering job creation and wealth-building opportunities within diverse communities.
- PCV’s Good & Green small business loan, available now, provides working capital to businesses helping their clients operate more sustainably, including: installers of energy efficient equipment and materials, as well as professional service firms and contractors involved in building decarbonization and electrification. This loan is priced at a discount to PCV’s standard loan and has an interest-only period up to 12 months.
- PCV’s Contractor Capital Solutions loan, provides contract-based financing to licensed contractors and subcontractors. This loan is designed to support historically underinvested contractors with upfront mobilization capital to invest in materials and staff for public works projects. Repayment terms will be flexible and structured to match project cash flow. This innovative loan will enable undercapitalized contractors to increase their contracting capacity and successfully bid for, win, and deliver on public agency projects.
All Fund clients will have access to PCV’s new Climate Economy Access Pathways and 1:1 pro-bono business mentorship through our Business Advising platform, as well as the opportunity to qualify for Good Jobs Rebates as they invest in their employees by providing good jobs attributes.
The Fund will support Justice40 and LMI communities in recognizing not only environmental benefits from the GGRF, but also economic development benefits that create “good jobs” and wealth building that uplifts underestimated communities sustainably, and is not solely dependent on federal or philanthropic capital.
We envision a future that centers the power and wealth building potential of the climate economy within the Justice40 and historically underestimated communities that have been denied access for too long. By providing financial support and democratizing access to resources and networks, we seek to empower our clients to play a significant role in climate action in the communities they call home while ensuring that climate economy jobs remain sustainable and resilient.
For more information on investing or partnering with PCV to make this vision a reality, watch the recording of the Climate Fund launch webinar, or contact our Chief Impact Officer: cbell@pcvmail.org