While C-PACE (Commercial Property Assessed Clean Energy) may be relatively new to some lenders, Stone Bank is leading the way in harnessing its potential, especially for small businesses. In the recent article “C-PACE Funding Gaining Traction”, Car Wash Magazine spoke with the President of Stone Bank, Nick Roach, and SBA division president, Vincent Muratore, about the growing significance of C-PACE financing and its unique repayment structure.
The article delves into the practical impact of C-PACE financing in the car wash industry, an enterprise that has harnessed C-PACE financing to fund projects such as water recovery systems, LED lighting, HVAC units, and more, all contributing to enhanced energy efficiency and sustainability.
C-PACE has proved to be a game-changer for car wash owners, and Stone Bank has leveraged this financial tool to help other businesses that prioritize energy efficiency and sustainability find funding, closing loans for more than 10 small businesses this year alone. C-PACE is unique in that it allows property owners to finance 100% of upfront costs for energy, water, resilience, and public benefit projects. Repayments are linked to property tax assessments, unlike traditional loans, and remain with the property even if it’s sold.
“[C-PACE] is a great fit for the car wash industry as it’s specially geared toward funding energy-saving property enhancements, such as water reclamation systems and electricity usage, both of which usually figure heavily into a site’s efficiency goals,” said Stone Bank President Nick Roach.
As of 2022, more than 38 states have C-PACE-enabling legislation, and 30 states have active programs. The impact is undeniable, with over $5 billion invested in 3,100+ commercial projects as of December 2022.
“It’s a great product for us in a case where a client needs to borrow more than an SBA program would allow,” said Vincent Muratore, president of Stone Bank’s SBA Division. “We can fill the gap with C-PACE as most of these loans offer long-term fixed-rate options, so you don’t have the uncertainty you might encounter in an adjustable interest rate structure.”
If you’re interested in C-PACE funding or exploring other SBA loan options, reach out to Vincent Muratore or another member of Stone Bank’s SBA division to start your journey towards financial innovation today.