CERF is a private, for-profit company with a public purpose designed to finance the cleanup of contaminated sites anywhere in the state of California.

CERF uses a variety of lending options and strategies to provide a financing solution satisfactory to all involved parties. We work with our many bank investor/members for a total financing package when required.

CERF has initial funds of $40 Million and may expand to $75 Million. When combined with the financing abilities of our investor/members, the resources are enormous.

CERF provides a variety of loan, mezzanine loan, and equity products as well as credit enhancements depending upon the requirements of the projects financed and the needs of the clients. Financing options are limited only by the ingenuity of CERF’s staff who have a combined finance, lending and equity experience of over 45 years, not including that of the Directors, Investment Committee and Advisory Board.

CERF’s clients typically include the following:

• Operating businesses…and other entities of all sizes with or seeking to acquire a contaminated site needing remediation…for continuing operations, expansion, sale or other business purpose.
• Real Estate Developers or Investors...broadly defined, private or public, for profit or nonprofit with or seeking to acquire sites needing remediation for development, rehab or resale.
• Public Entities…including Redevelopment Agencies, Community Development Corporations, public or quasi-public agencies, municipalities or others for similar purposes.

CERF’s funds may be put to use in a variety of ways:

• Site Remediation…contaminated site cleanup, broadly defined.
• Site
• Acquisition
• Characterization
• Improvement
• Rehab/Construction
• Development…residential/commercial
• Any other business purpose…related to the site:
• All of the above uses are made in conjunction with a remediation/cleanup.

CERF’s Loan/Investment Officers will craft a financing solution that reflects the needs of the client in terms of cash flow/debt service requirements, equity employed, risk management tools used and other financing resources available. CERF will employ its resources and those of its member/investor banks. Other resources, public or private, if available, may be used as well.

Here is a sampling of the types of financing available from CERF:

• Interest only…for the term of the cleanup/rehab/construction; repaid from permanent financing from another conventional source, or from CERF.
• Amortized loan…over the term of the remediation/cleanup or as negotiated.
• Permanent financing…terms limited only by the value of the collateral and the strength of the credit.
• Mezzanine financing…fully subordinated debt, usually with interest rate and royalty/success fee or equity components.
• Equity financing…pure equity position, with repayment at take out or sale.
• Participation loans…as originator or participant with any other qualified lender/investor, public or private.
• Loan guarantees…provided for other qualified lenders.
• Public entity financing…levels of funding, collateral and other terms negotiable on an ad hoc basis.

17. What if Environmental Insurance is not adequate, or is not available…will this kill the application?

1. No. CERF has proprietarial, state of the art environmental underwriting guidelines that have been professionally designed by a task force of nationally recognized environmental specialists. Such guidelines, created especially for CERF, will be used on all transactions, including and especially for those without insurance. Such underwriting diligence protects all parties to the transaction.

17. What about credit underwriting guidelines…are they more stringent than those of banks or other investor/lenders?

1. No. Standard credit underwriting guidelines generally apply, although CERF can write more flexible terms than most conventional or state lenders.

17. What about rates?

1. Rates are market based and vary with the level of risk. CERF’s advantage here is that we can structure the timing and level of return within each transaction to conform to the type of deal and needs of the client.

17. What about the types and level of collateral required?

1. Collateral requirements will vary. CERF’s collateral position can range from a first position, pari-passeu or junior secured with other lenders to fully subordinated debt. If it is a shared appreciation or equity transaction, little or no collateral may be required. Personal guarantees are considered but not necessarily required on each transaction.

17. When can we apply…is the money available now?

1. Yes. CERF is fully operational and accepting applications.

17. How do we apply…is the process complicated?

1. There is no formal application or involved process. There is a document checklist later in this brochure. We first recommend a call or a personal visit with one or both of the Loan/Investment Officers listed to get an indication of how to proceed with your particular application.

17. How long will the approval process take?