SynSel’s business partner and financier has reserved funding for 100 bio-refineries in the US and Canada. To release the construction loan, a 25% project deposit fund is required. This project deposit fund is also called a Good Faith Account (GFA). It is a fully-protected controlled transfer of funds that earns a better-than-market return.
The GFA is a credit qualifier. The purpose is not economical: it has no financial recourse on the project by means of lowering debt service, nor does it serve to share project funding risk with the GFA investor. The purpose of the GFA is to qualify credit worthiness and to provide a means to financing a project with a limited commercial track record, fast-tracking the vetting process to capable developers (those capable of achieving the 25% GFA) and reducing loan default risk. Funding a GFA has no risk to the project deposit principal. Please refer to the GFA Brochure for a discussion on the Purpose and Benefit of the GFA. The GFA requirement can be satisfied organically, funded by a stakeholder in a specific site, or synthetically, by an outside investor with a cash deposit, standby letter or credit (SBLC) or bank guarantee (BG). Alternatively, niche investment bankers solicit “GFA-type” of Credit Enhancement that can be purchased by SynSel directly. SynSel can refer a registered broker-dealer to facilitate an outside investor aligned with an Impact Investing-minded fund.
With a GFA, there is no risk to principal. SynSel is working with Nilsson International AB as our exclusive GFA insurance consultant. Once the GFA is bundled with an insurance wrap to protect the interest return element and cost of facilitation, the GFA will likely be attractive to pensions, family offices, endowments and special interest funds. A GFA + insurance wrap is also referred to as a Financial Structured Product. These targets seek a minimal to no-risk investments that offer better-than-market returns while also unleashing SynSel’s Impact Investing Biofuels Revolution.
Please contact us to learn more about GFA opportunities: