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business people smiling and high fiving after getting CPACE financing
CPACE financing is a great financing option for many commercial building upgrades.

Looking for low cost, long term financing for your property? CPACE financing may be the perfect option for you. This attractive financing option has helped countless property owners make improvements without breaking the bank. With more and more programs allowing for retroactive financing, it may also help you refinance past projects that are eligible for PACE. 

What is CPACE Financing?

CPACE financing, also known as commercial PACE financing, is a type of funding that commercial property owners can use to make their buildings and properties more efficient. PACE stands for property assessed clean energy, as the loan is repaid as an assessment on your property taxes. Also, this type of financing can only be used for eligible projects that improve the efficiency of your building. 

Now, many people take this to mean that they can only use CPACE financing for very specific upgrades like installing solar panels or other similar projects. However, there are actually many types of projects that may be eligible for PACE loans. Some common ones include lighting retrofits, HVAC upgrades, and window replacements. In some areas, you can also use CPACE loans to fund resiliency projects, such as strengthening your building’s envelope. This financing can cover up to 100% of the project’s hard and soft costs as well. 

There are a few requirements to receive CPACE financing. First, the project must be eligible. Also, improvements must be a permanent fixture of the building. Savings from the upgrades should also cover the costs of the loan and last past the loan term.

Some of the benefits of PACE loans include the financing staying with the building in case you sell, long loan terms, fixed rates, financing for up to 25% of the property value, and no personal guarantees. 

Retroactive PACE Loans May Help You Refinance and Maintain Cash Flow

Now that we’ve covered some of the big points about CPACE financing, let’s talk about retroactive PACE loans. In participating areas, this allows PACE lenders to retroactively finance eligible projects. For instance, say you decided to retrofit your lighting system for more efficient LED options last year. Often, you can qualify for a retroactive PACE loan because the project was eligible and you could have received this type of loan at the time if you had applied.

Retroactive PACE has helped many property owners refinance recent projects for more favorable loan details or to help with cash flow management. If you took out a different type of loan for the project, you may be able to use the funds from the CPACE loan to pay it off and take advantage of the many benefits of PACE. If you used cash, you can retroactively finance your project to increase cash flow for your property. In fact, many property owners have used this option to stay afloat during COVID-19 lockdowns. Therefore, there are many solutions that may work well for you.  

Get Commercial PACE Financing from Stonehill PACE

When you need PACE financing, choose our experts at Stonehill PACE. We are a direct PACE lender for all commercial asset classes. Our team works with you to find creative financing solutions for your construction or remodel projects. We maintain strong relationships with PACE program administrators and help you through the qualification process to get you the funding you need. Contact us today to learn more and talk to our originators about your financing needs.