Crayhill Capital rolls out $50m–$500m Tax Equity Bridge Lending programme

United States, August 15, 2025

News Summary

Crayhill Capital has introduced a Tax Equity Bridge Lending programme offering facilities from $50 million to $500 million to help U.S. renewable developers meet tightened federal tax-credit qualification rules. The product pairs short-term bridge loans against anticipated tax-equity commitments with pre-construction and construction financing, preferred-equity step-up support, and equipment procurement assistance. Designed to accelerate meaningful construction activity while permanent tax-equity and construction financing are finalized, the programme aims to bridge timing gaps caused by stricter documentation and construction tests and to help developers secure long-lead components and close construction financing more quickly.

Crayhill Capital rolls out $50m–$500m Tax Equity Bridge Lending programme to help U.S. renewables meet new tax-credit deadlines

What happened: A new Tax Equity Bridge Lending (TEBL) programme has been launched to help U.S. renewable energy developers navigate tightened federal tax-credit rules tied to construction timetables. The programme offers facilities sized between $50 million and $500 million and pairs bridge loans against future tax equity commitments with a range of pre-construction and construction financing tools.

Why it matters now

Federal tax-credit rules now require qualifying projects either to begin construction by 4 July 2026 or be placed in service by 31 December 2027 in order to claim investment tax credits (ITC) or production tax credits (PTC). New guidance and executive orders may raise the bar further by asking projects to show a “substantial portion” of work completed rather than counting early, preliminary actions as the start of construction. Those timing and documentation demands have increased pressure on developers to accelerate pre-construction and procurement activities.

What the TEBL programme provides

• Bridge loans tied to future tax equity to enable developers to begin qualifying construction activities now.
• Pre-construction and construction capital, including development loans and construction equity.
• Preferred-equity step-up capital to shore up balance sheets during the build phase.
• Equipment procurement assistance to secure critical long-lead components needed to show substantial progress.
• Facilities that are flexible in size, targeted at projects requiring between $50m and $500m of capital.

How the programme is positioned

The programme aims to give developers a more direct path to close construction financing and monetize tax credits by providing capital tied to confirmed or expected tax-equity commitments. It is presented as part of a broader expansion of pre-construction financing options intended to let developers initiate meaningful construction work immediately while a longer-term financing package is finalized.

Context on regulatory and market pressures

Industry observers point to tightened rules and recent legislative proposals as drivers of an “unprecedented” pace in project schedules. Separately, rising power demand, including increases tied to artificial intelligence and electrification trends, is creating additional urgency to scale renewable capacity quickly.

Background on the firm behind the programme

The manager behind the lending product has been active in asset-based finance since the mid-2010s. Since 2015 it reports deploying more than $4 billion across more than 50 transactions. A recent flagship fund closed at approximately $1.31 billion, above its prior target, and the firm is described as operating an asset-based finance platform with a multi-product approach for energy sector investments.

Relevant past deals and relationships

In a prior financing announced in 2021, the manager provided $275 million of flexible capital to a renewable developer to advance projects into construction and scale a solar and storage platform. That earlier arrangement highlighted the use of flexible, project-level capital to ready pipelines and mobilize large scale deployments over several years.

Other practitioner notes

Company leadership has discussed related risk-transfer tools and market evolution in recorded panels and conversations, touching on synthetic risk transfer (SRT), investor concerns, and the changing roles of banks and non-bank capital providers. Those conversations underline the broader search in the market for financing structures that can handle compressed schedules and shifting regulatory tests for tax-credit qualification.

Implications for developers

The new TEBL option could be useful for developers who need to show rapid, substantive progress to meet tax-credit rules while final tax-equity investors and construction lenders are still negotiating. Key trade-offs for developers include pricing, the strength of the future tax-equity commitment, alignment of timelines, and how much procurement and construction activity the bridge lender requires to advance funds.

Bottom line

The programme is a financing tool aimed at closing a timing gap between the need to begin qualifying construction quickly and the often slower process of securing traditional tax-equity and construction financing. Its impact will depend on uptake by developers, the evolution of regulatory tests for starting construction, and broader market appetite for tax-equity-linked bridge financing.

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FAQ

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Key features at a glance

Feature	Details
Facility size	$50m–$500m
Primary use	Pre-construction, construction financing, and bridge to tax equity
Financing types included	Bridge loans, development capital, construction equity, preferred equity step-up
Support services	Equipment procurement assistance
Relevant deadlines	Begin construction by 4 July 2026 or placed in service by 31 December 2027
Intended technologies	Solar, wind, battery storage
Firm background	Multi-transaction experience since 2015; reported $4bn+ deployed; recent fund close ≈ $1.31bn

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Additional Resources

• Alternative Credit Investor: Crayhill Capital launches finance solution for US green energy projects
• Wikipedia: Tax Equity Bridge Lending
• IREI: Crayhill Capital Management closes third flagship fund with more than $1.3B
• Google Search: Crayhill Capital Management third flagship fund 1.31 billion
• PR Newswire: Crayhill provides $200M secured receivables financing facility to Stenn Technologies
• Google Scholar: Crayhill Stenn receivables financing 200 million
• PR Newswire: Urban Grid closes $275M debt refinance provided by Crayhill Capital Management
• Encyclopedia Britannica: Urban Grid debt refinance Crayhill
• ION Analytics / Mergermarket: Carlos Mendez on trends in SRT
• Google News: Carlos Mendez Crayhill SRT synthetic risk transfer