Bankers/Lenders

There will be an outstanding tax bill and a substantial amount of time allowed to get any outstanding back payments up to date. This is often multiple years. A great protection for lenders is that we have no way of calling the principal balance in the event of a default. The only payment obligation is the amount due at that time, not future payments or principal. In the case of a missed payment, PACE Equity asset management would generally be reaching out to the lender to ensure they are aware of outstanding balance if it is not made within a reasonable timeframe of being due.

Not at all. You maintain complete autonomy to call a default and foreclose, and your security interest is protected. You do not need to involve us in a foreclosure.

There are no SNDAs or intercreditor agreements. The only paperwork needed for the bank to sign is an agreement accepting the financing from PACE Equity. Many lenders like the simplicity that they do not have to work through complicated intercreditor agreements to enforce their rights such as what is required with mezzanine financing.

PACE is a voluntary financing obligation. It is not considered an operating expense, nor would it be included in any appraisal. It is underwritten as a part of debt service.

Both the lender and PACE Equity are doing underwriting on the property to ensure the project has adequate cash flow for its obligations. You also have sign-off and control of whether or not to accept PACE Equity financing.

In order for PACE Equity to be involved, there has to be an improvement to the property, which increases the collateral value. After the project, it is a more valuable building with lower long-term operating costs.

You’re able to differentiate yourself with competitors by partnering with PACE Equity. You can bring in a capital source for future clients, as well as have a competitive advantage for potential clients.

An energy study is required to qualify for PACE Equity financing and will quantify the utility savings and other benefits of the improvements. The energy modeling looks at current utility spend or will use a building model based on local code.