The C-PACE program incentivizes developers to think about a future with clean energy
What is C-PACE Financing?
C-PACE is a financing tool available in over 30 US states that funds energy efficiency and renewable energy upgrades for commercial properties. Unlike a traditional loan, C-PACE financing is repaid through a special assessment on the property’s tax bill. This means the debt is tied to the property, not the owner. If the building is sold, the new owner assumes responsibility for the remaining payments. This structure makes C-PACE financing extremely secure, and default is very rare.
The Role of C-PACE in EB-5 Projects
When C-PACE financing is integrated into an EB-5 project, it can significantly benefit the investor. It can reduce or eliminate the need for a traditional senior loan, which elevates the EB-5 loan to the most senior debt position. This is a critical advantage for investors, as it provides a higher level of security for their capital. In the event of liquidation, the EB-5 fund has the first claim to the project’s assets.
By incorporating C-PACE financing, EB-5 regional centers can offer projects with a more robust and secure capital stack, which can provide greater confidence for investors seeking to protect their investment while pursuing a US Green Card by Investment.
