PACE loans offer incredibly cost-effective and advantageous financing solutions for property owners. Commercial PACE is a program available in many states that provide low cost, fixed rate, and non-recourse funding for a wide range of projects. If you’re looking for attractive financing options, PACE loans may be right for you. In this article, we will discuss who qualifies for commercial PACE financing and what you need to apply.
Who Qualifies for Commercial PACE Loans?
Commercial PACE is available for all types of commercial properties. You can use PACE loans for projects on buildings like:
- Retail
- Multifamily
- Hotels
- Offices
- Industrial facilities
PACE is a type of loan offered for certain types of projects. Each state and local area has different regulations regarding PACE approval. However, typically energy efficiency, renewable energy, water conservation, and natural disaster preparedness projects that stay with the building long-term qualify. For example, lighting upgrades, HVAC retrofits, seismic retrofits, and water usage reducing upgrades may all be eligible under your PACE program.
Also, you can get up to 25% of the property’s value in PACE financing and it requires no down payment, making it ideal for making improvements without negatively affecting your budget. Qualifying for PACE funding is typically quite simple. You generally need to show that the project will offer more savings than the cost of the loan and the value of the project will last longer than the term of the loan. In addition, you will need to ensure that you have a clear title, the mortgage lender’s consent, and also that you have had no bankruptcies in the last five years.
What Do Property Owners Need to Apply for PACE Financing?
If you’re interested in PACE for your commercial building, the first step is to reach out to our professionals. They can help guide you through the process and give you a checklist of things you need to apply for PACE loans. You may need several documents for the PACE administrator to approve your funding. Some of these required documents may include:
- PACE application
- Appraisal to show property value after your project
- Environmental reports
- Title report
- Energy engineering report
- Mortgage loan documents
- Three years of financial statements (historical or projected)
- Copies of construction contracts
Each of these documents helps PACE lenders and administrators determine if your project and property qualify for financing under the PACE program. Also, our team has a thorough knowledge of different programs in a wide range of locations and can help you navigate the application and approval process as it applies to your specific property and geography.
Stonehill PACE – Your Source for Direct PACE Loans
At Stonehill PACE, we are a direct PACE lender. We provide loan solutions for all commercial asset classes. You get peace of mind when you work with Stonehill for your PACE funding needs. When you work with our team, you know the capital is there to complete the transaction and help you finance your project. We help you navigate the PACE administration approval process and work efficiently so you can take advantage of this innovative, low-cost financing solution. Contact our team today to discuss your PACE financing options.