Eight Reasons Why Banks are Consenting to C-PACE Financing

Benefits of C-PACE for Banks

Here are a few ways banks are seeing the benefits of C-PACE:

C-PACE in the capital stack enables banks to continue the lending relationship with valuable clients while maintaining a healthy deposit-to-loan balance.
For mid-stream development projects that previously penciled but fall short amid tightening conditions, C-PACE fills gaps in the capital stack to get deals back on track.
C-PACE can be ideal rescue/gap financing and as spreads have come down, it is even more competitive to mezzanine and private debt from bank-competitors.
C-PACE is non-recourse financing that cannot be accelerated, preserving the bank’s lead position in the event of loan defaults.
C-PACE financing does not require inter-creditor agreements, keeping administration manageable.
C-PACE financing is applicable at any time during the property lifecycle ranging from new construction to retroactive financing.
Escrowing for PACE payments is recommended alongside escrow for insurance and taxes. This helps ensure that the PACE stays current and security position is maintained.
C-PACE loans can transfer upon sale of a property or be pre-paid at any time.