As a commercial property owner, you may be interested in making energy-efficient upgrades to your building. One financing option that can help you pay for these upgrades is Commercial Property Assessed Clean Energy (PACE). PACE financing allows you to borrow money from a lender to pay for energy-efficient improvements to your property, and then pay back the loan through a special assessment on your property tax bill.
While PACE financing can be a great option for many commercial property owners, it's not always easy to get banks to consent to it. Banks may be hesitant to lend money for PACE projects because they are not as familiar with the program and may be concerned about the risks. However, with a little persistence and the right approach, it is possible to convince banks to support PACE financing for your commercial property.
Here are some tips and strategies for getting banks to consent to PACE financing:
Do your homework: It's important to be well-informed about PACE financing before approaching banks. Make sure you understand how the program works, the benefits it can offer, and any potential risks. This will help you make a compelling case to banks and show them that you have done your due diligence.
Find a reputable PACE provider: PACE programs are typically administered by local governments or special financing districts. It's important to find a reputable provider that has a track record of successful PACE projects. This will give banks more confidence in the program and increase the chances of them consenting to PACE financing.
Show the potential for energy savings: Banks are more likely to support PACE financing if they see the potential for energy savings. You can show this by providing energy audits or other documentation that demonstrates the energy-efficient upgrades you plan to make will result in significant cost savings.
Highlight the environmental benefits: PACE financing can also help reduce greenhouse gas emissions and improve the environment. You can emphasize these benefits to banks to help convince them to support the program.
Offer collateral: If banks are still hesitant, you may be able to secure their consent by offering collateral, such as a second mortgage on the property. This can help reduce their risk and make them more comfortable with the loan.
Consider alternative financing options: If you are unable to get banks to consent to PACE financing, you may want to consider alternative financing options, such as energy-efficient mortgages or commercial green loans. These options can also help you pay for energy-efficient upgrades to your property.
In conclusion, it may take some effort to convince banks to support PACE financing for your commercial property. However, with the right approach and some persistence, it is possible to secure the financing you need to make energy-efficient upgrades to your building.