“There has never been a more important time to provide private capital for energy improvements”
Dear Friends of CleanFund,
As we process the results of last week’s presidential election, some of you may be wondering how the outcome will affect CleanFund’s prospects for continued success. We wanted to share our perspective.
One of the things which most excites us about the PACE model is that it is a market-driven approach to solving environmental problems. Our solution uses profit motivation to deliver environmental benefits, without government funding. It delivers real value to commercial property owners as expanded access to capital and reduced operating costs. PACE is a solution which transcends party affiliation – this belief is supported by the fact that PACE programs are proliferating across America in both “red” and “blue” states. Last week we completed our first deal in Missouri, for example, and the municipal support was all about local jobs. We are helping the “Show Me” state put their local citizens to work on rebuilding their communities.
The upgrades that CleanFund can finance are essential parts of the infrastructure for our built environment. Many building systems (HVAC, lighting, etc.) have deferred maintenance and will benefit from continued federal support to rebuild. PACE is already well positioned outside of California as an infrastructure improvement.
Although most clean energy mandates are state driven, Trump’s likely policies at the Federal level will not be helpful for climate change. We must continue to set good examples in states like California that prove the value of our clean energy economy even without Federal support. There has never been a more important time to provide private capital for energy improvements.
CleanFund is also well-positioned with respect to macroeconomic factors over the next several years. We expect the Federal Reserve will raise interest rates. When real estate owners face a rising interest rate environment, they are even more likely to seek long-term financing and to minimize operating costs. Our PACE financing program provides for 20+ year fixed-rate financing, which will become even more popular in a rising rate environment. PACE can be viewed as a hedge against uncertainty in a downturn.
The bottom line is that we are tremendously excited about CleanFund’s business prospects, and the presidential election has not altered our perspective.
John Kinney | Chairman
CleanFund Commercial PACE Capital, Inc.
Days after the election Donald Trump made public his new plan to spend a $1 trillion rebuilding the nation’s economic backbone. Trump calls for Private Sector funding to rebuild, and make America great again.
“Trump’s plan would rely heavily on private funding, with the government encouraging investment through a tax credit that would raise the return to investors and lower the cost of borrowing to states and municipalities that would oversee the projects. ” Source: Finance.yahoo.com