PACE financing is a public-private funding that commercial property owners can obtain when they are looking to make energy-efficient changes to the building structure. A PACE loan can cover the expenses when property owners are looking to invest in renewable energy enhancements. C-PACE funding can work as a flexible tool for you when you want to implement green energy resources for your operations and bring down the carbon footprint of your property.    

The PACE financing companies in Kentucky can offer you a customized PACE loan amount that will help you to cover the expenses you need to manage to make your property energy efficient. Compared to the mezzanine loans, the interest rate for PACE loans is 50% lower and this makes them ideal for making critical changes and modifications to the property.

Basic Features of a PACE Loan

PACE loan programs provide property owners with the freedom and flexibility to pay off the up-front costs of improving the energy efficiency of a property. A property owner can then make repayments on the loan through property tax assessments over a significant period, normally between 20 to 30 years. The property assessments are connected to the property and not the owner of the property. This means that if at any point in time, you decide to sell off the property to a new owner, the responsibility of making the payments for the PACE loan will fall onto the new owner.

Why Get a PACE Loan?

Commercial property modifications typically cost a lot; something that the property owners are often not able to afford on their own. For instance, if you want to set up insulation windows or have new elevators installed on your property, it is going to involve a substantial investment on your part. By obtaining a PACE loan, you can manage these expenses easily and even get products of the highest quality. Here are some advantages of a PACE loan that you should consider when you are seeking financial assistance for your commercial property enhancement.

  • The structure of the PACE loans is well suited for large-scale changes in commercial property. When you are thinking of setting up HVAC systems for your commercial building, getting new elevators, or installing solar panels to produce energy naturally, such modifications typically cost a lot. A PACE loan is a high amount loan, ranging anywhere between $500,000 and $500,000,000 and the rate of interest you need to pay for this loan is also lower. This is why PACE loans are perfect for major commercial property modifications.
  • PACE loans are not only ideal for making a building energy efficient but they can also be used to make commercial properties resilient to structural damages. If you want to make your business premises safe from seismic activities, you will need to do some retrofitting to achieve that effect. With the C-PACE loan, you can do that easily and make sure that the people who use your property are always safe from harm. You can also enhance the robustness of your property so that it stands strong against hurricanes and other forms of natural calamities.
  • When you use a C-PACE loan to finance the upgrades to your commercial property, it can be beneficial for you as well as any other tenants or business owners who use your property for their commercial activities. Moreover, the lease structures of the C-PACE loan can ensure great cost savings for you and everyone else.

Summing Up

Using a C-PACE loan has numerous practical benefits; a reason for which it is the most popular financing method for commercial property owners looking to carry out energy and resiliency upgrades. If you want to learn more about C-PACE loans and what they can do for you, consult with C-PACE.com for the best professional guidance.