Help Your Business Clients Unlock Additional Financing When You’ve Hit The Max LTV Limit!

c-pace commercial lending Oct 31, 2023

The C-PACE financing program (Commercial Property Assessed Clean Energy) is an innovative way to help your business banking clients access more CRE loan dollars when your bank has hit the financing limit. Chances are your bank already participates in the program!

C-PACE is a form of low-cost, non-recourse financing that is ideal for projects that involve ground-up construction, property renovation, or property repositioning. Commercial real estate owners can access additional loan dollars by incorporating energy efficient and renewable energy strategies into the project. Program features include:

  • covers 100% of eligible improvements and amortizes up to 30 years
  • is secured and repaid by a special assessment attached to the property
  • is limited to 20 to 30% of a property’s value
  • is available in most states
  • is available on owner-occupied and investor CRE projects
  • reduces owner’s cash injection requirement into the project

Use Case: A business owner needs to finance a $4.5 million CRE construction projection. The bank can only provide financing up to 60% of the value of the property and can only offer $3.5 million in financing. Rather than passing on the opportunity, the Business Banker offers the C-PACE program as a strategy to help the client access the full $4.5 million in financing needed to complete the project. The project would be financed through a combination of a bank loan and a C-PACE loan. It is similar to the SBA 504 program.

If you want to learn more about the C-PACE program, reach out to me at 310-210-4571 or  [email protected]. There are several innovative financing programs that will help you get your business clients to the finish line when your bank has hit the limit and can’t provide all the loan dollars your client needs to get their projects completed. Before you pass on a deal, give me a call! I may be able to help you get the deal funded!

Bizpetrol has information, insight and tools that will help you become a Business Banking Superstar! Enroll in the Business Banker Development Program. Learn more at https://www.bizpetrol.com/business-bankers. You can see all the Business Banking articles (like this one) at www.bizpetrol.com/blog. You can access a series of how-to business banker guides at https://www.bizpetrol.com/Downloads-Free.

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