Anatomy of a Green Loan

How it works and who it's for

Green Financing Playbook

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At Freedmen Green Bank, we finance impact. Green loans are one of the ways we do that—putting dollars behind projects that reduce greenhouse gas emissions and strengthen communities.

Here’s what you need to know.

The DNA of a Green Loan

What makes a loan green? It must fund activities like:

A green loan starts with intention. You bring us a project—a home you want to weatherize, a solar system for your nonprofit facility, a commercial building that could be made energy efficient. If your goal is environmental improvement and your project serves communities often left behind, we’re already listening.

Next comes evaluation. We assess whether the project meets key criteria: Does it help reduce emissions? Will it benefit a Justice40 community? Does it make long-term environmental and economic sense? 

Once approved, you’ll receive funding—often with more favorable terms than a traditional loan. Our approach prioritizes impact over credit scores, offering flexible terms and tailored underwriting. Many green loans come with technical assistance and even access to federal or local incentives. You don’t have to navigate it alone — that’s where we come in.

What makes a green loan different isn’t just what it funds—it’s what it demands. You’ll track impact and share results. Don’t worry—we guide you through it. This accountability helps everyone: it proves value, sharpens outcomes, and keeps the mission on course.

Who It Is for

At Freedmen Green Bank, we specialize in green loans because we know that climate action needs capital. Our borrowers aren’t just building projects — they’re shaping the future. These loans are tailor-made for nonprofits, small businesses, developers, and even entire communities committing to reducing their carbon footprint and creating lasting impact. 

So who benefits from green loans? Homeowners who want to cut energy costs. Nonprofits modernizing buildings in underserved neighborhoods. Small businesses transitioning to clean energy. Developers constructing sustainable spaces. And lenders seeking guidance to expand green financing.

Why it matters

Green loans aren’t just good for the planet. They lower utility bills, reduce energy burdens, and help frontline communities build wealth through sustainability. 

At Freedmen Green Bank, we see green lending as a tool for climate and economic justice. If you’ve got a project, let’s talk.

Learn more about our Loan products

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