As more and more businesses and public buildings are re-opening, building owners are working to mitigate risks of COVID-19 transmission. Upgrades are happening far and wide, but they can quickly become costly, leaving many building owners with the issue of having to choose between cash flow and doing everything they can to reduce the risk of spreading the virus that causes COVID-19. What many property owners may not realize is that many of these upgrades may be eligible for PACE loans. In addition, if you’ve already made these improvements on your property, you may be able to get retroactive financing.
PACE financing is a low-cost financing option for improvements that help with energy or water conservation. This long-term loan is designed to help building owners have the capital to invest in improvements that are more efficient. In most cases, eligible improvements must offer long-term savings that cover the cost of the loan entirely. Some COVID-19-inspired upgrades may be PACE eligible because they may offer energy savings.
PACE Loans May Help with HVAC Upgrades for Increased Ventilation
The CDC notes that indoor ventilation may help reduce the number of virus particles indoors, which may also help reduce the risk of COVID-19. This has led many property owners to look toward upgrading their HVAC systems to handle the increased need for ventilation. Also, many are considering using HVAC systems with high efficiency particulate air (HEPA) filtration and air purification for recycled air.
In some cases, these HVAC upgrades may be more energy efficient than current systems and offer significant energy savings. Therefore, some of these improvements may be eligible for PACE loans. This can help owners make improvements without significantly impacting cash flow.
Building owners often use PACE loans to help with the costs of HVAC systems and controls. Therefore, if you’re thinking of upgrading these systems to help reduce the risk of COVID-19 for your occupants, your project may qualify for this attractive financing option.
Touch-Free Technology May Qualify for PACE Financing
Another common upgrade we’re seeing after the outbreak of COVID-19 is an investment in touch-free technology. For example, automatic doors and motion-sensor lights and faucets. Many are upgrading to touch-free technology to reduce the risk of spreading the virus through high touch surfaces.
Once again, these technologies may also offer energy savings that may qualify for PACE loans. For instance, motion-sensor lights can help reduce electricity use by automatically turning lights off when rooms aren’t in use. Automatic faucets in the bathroom may help reduce water consumption. Therefore, PACE may help you make energy-efficient COVID-19 building upgrades by providing low-cost financing.
CPACE Financing Solutions from Stonehill PACE
If you’re interested in low-cost commercial loans, contact our team at Stonehill PACE. We lend to owners of all types of commercial properties. Our professionals regularly help owners and developers with creative CPACE financing solutions without changing the scope or cost of their project. We maintain strong relationships with PACE administrators and can help you manage the entire approval process. Contact us today to learn more about your funding options.