Build your Lending Portfolio—and Position Yourself as a Valued Community Partner—as a PACE Lender

Building owners, contractors, and local governments across the country have embraced the benefits of PACE financing programs and are looking for lenders to help them participate in their local program.

Benefits of being a PACE lender:

  • Increased property value. Energy improvements boost net operating income, help insulate real estate investments from energy price volatility, and make the property more attractive to future tenants and owners.
  • Senior lien position. Repayment occurs through the property tax bill. As the holder of a Tax Assessment Lien, your financial institution is in the most secure position of all building creditors.
  • No impact to debt service coverage. Most PACE projects must generate positive cash flow through energy savings and the project contractor guarantees the savings.
  • Loan costs are passed on to building tenants. In most triple net leases, special assessment payments are considered operating expenses.
  • Loan terms are tied to improvement life. Loan has a maximum payback period of 20 years.
  • Tax lien tied to the building, not the owner. The lien is automatically transferred at the time of sale.
  • Fully amortized loan. There’s no balloon and no acceleration at any time.

Want to learn about the EFS PACE program? Contact us today.

Please note: EFS PACE requires mortgage lender consent to the tax assessment prior to closing the PACE transaction.