Climate First Bank commercial solar loans are designed to provide flexibility for borrowers.Borrowers may apply Investment Tax Credits (ITCs) or other large lump-sum payments at a later date and request a re-amortization of their loan to reduce their monthly payment.
Can a Commercial Loan Be Re-Amortized in the Future?
Yes.
OneEthos commercial solar loans may be re-amortized at any time during the loan term, and there is no fee associated with re-amortization.
Re-amortization allows the remaining loan balance to be recalculated over the remaining term, resulting in a new (typically lower) monthly payment.
Using ITCs to Reduce the Loan Balance
If a borrower is unable to immediately utilize their Investment Tax Credits (ITCs) at the time of project completion, they may:
Apply the value of the ITCs at a later date as a lump-sum principal curtailment, and
Request re-amortization of the loan after the curtailment is applied.
This approach allows borrowers to align their loan structure with the timing of tax credit realization.
How Re-Amortization Works
When a re-amortization is requested:
The remaining principal balance is recalculated
The loan is amortized over the remaining loan term
The monthly payment is reduced
The interest rate and maturity date remain unchanged
Re-amortization does not occur automatically and must be requested by the borrower.
Key Points
Re-amortization is permitted at any point during the loan term
ITCs may be applied later as a principal payment (curtailment)
Re-amortization occurs upon borrower request
No re-amortization fees
No minimum principal amount required to request re-amortization
Important Notes
Re-amortization only recalculates payments; it does not change the interest rate or extend the loan term
Standard loan servicing timelines apply once a re-amortization request is submitted
Borrowers must continue making regular monthly payments until the re-amortization is completed
Common Use Cases
Re-amortization is commonly used when:
ITCs are realized in a later tax year
A borrower receives rebates, incentives, or other lump-sum proceeds
A borrower wants to reduce monthly payments without refinancing