CleanFund's commercial PACE financing is preferable over other types of traditional financing when funding energy efficiency, water efficiency and renewable energy projects for commercial properties.

CleanFund’s long-term, fixed rate financing products, PACEDirect and SolarPACE, offer a unique opportunity to improve the property while not incurring additional debt or utilizing desirable equity, particularly when compared to traditional bank financing.

How Does CleanFund’s PACEDirect Compare to Traditional Bank Financing? PACEDirect Bank Financing
Typical Financing Term Up to 30 years Usually 5-10 years*
Cash Flow Benefit Immediate Delayed**
Underwriting Process/ Timeframe Easy / Faster Difficult / Longer
Balloon Payment? No Yes
Financing Can Stay with Property Upon Sale? Yes No
Pass Through Financing Payments to Tenants? Yes No
Avoid Borrower Guarantees? Yes No
Avoid Financial Covenants? Yes No
Avoid Interest Rate Risk? Yes No
Avoid Quarterly Bank Reporting? Yes No

*Typically 25-30 year amortization
**Depending on term and variability of interest rate, the cash flow benefit may not materialize with bank financing