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F30 Linked deposit loan programs

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Description

The treasury deposits funds at the local commercial bank, which then can offer cheaper loans to the beneficiary of the program.

Example

Green Lending Program in Springfield, Illinois. The program was introduced in 2017 focusing on lending to the non-profits and faith-based organisations that have difficulties in accessing capital. The program is capitalised using linked deposit programs and it offers loans for financing solar and green infrastructure investments. The program is said to encourage the beneficiaries to reduce carbon emissions, basement flooding and barriers to locally produced food and open space.

Source D6.3 Business Models and Financing Strategies