For Lenders

PACE in Texas is open-market, and consequently a wide range of parties can make PACE loans. Eligible third-party lenders may include:

• Any federally insured depository institution such as a bank, savings bank, savings and loan association and federal or state credit union;

• Any insurance company authorized to conduct business in one or more states;

• Any registered investment company, registered business development company, or a Small Business Administration small business investment company;

• Any publicly traded entity; or

• Any private entity that:
  • Has a minimum net worth of $5 million;
  • Has at least three years’ experience in business or industrial lending or commercial real estate lending (including multifamily lending), or has a lending officer that has at least three years’ experience in business or industrial lending or commercial real estate lending; and
• • Can provide independent certification as to availability of funds.

All lenders must have the ability to carry out, either directly or through a servicer, the bookkeeping and customer service work necessary to manage the assessment accounts.

Note that the Texas PACE Authority neither recommends nor endorses any particular PACE Service providers. This directory is provided solely for convenience in consolidating a list of PACE service providers. If you would like to be listed as a PACE lender, please contact Texas PACE Authority.

View Our Lender List

If you want to be listed on our website, and you meet the requirements outlined above, we will gladly list you on our website. The next step is to fill out the Texas PACE Authority's Request for Qualifications and submit it. That RFQ can be downloaded:  Texas PACE Lender Interest Form

If your client wants to do a PACE project, they will need your consent to put an assessment in place. There are a number of reasons that might allow this, which we've outlined below. In short, PACE can both increase your borrowers' ability to repay (Debt Service Coverage Ratio) and increase the value of your collateral (lowering LTV).

The Consent Form:  Lender Consent to PACE Assessment

An overview of why a lender would consent:  A Case For Lender Consent

Finally, a list of senior lenders that have consented:

• List of National Consenting Lenders
• List of Texas Consenting Lenders

The goal of TPA is to have a well-resourced, efficient, and financially stable organization while keeping costs to a minimum and operating in a lean fashion. To that end, TPA charges two types of fees as part of administration, an application fee and an ongoing interest rate residual. These fees cover the basic administrative service to complete a PACE project as well as the ongoing oversight and program reporting to local governments that enact a PACE region.

Application Fee is the greater of:

• $2,000; or
• Amounting to
  • 1% of total project cost of first $5 million;
  • .5% of marginal amount above $5 million; and
  • .25% of marginal amount above $20 million.

Initial $500 to be paid with the application. Balance to be paid at closing.

Ongoing Residual Fee amounting to 8 basis points annually on the loan, resulting in a declining payment based on the outstanding principal balance to be paid as part of the annual assessment. Note: This fee can be capitalized and paid in full at closing.

When an existing PACE Assessment is amended, the above Application Fee will be calculated on the difference between the original project cost and the updated project cost, or $2,000, whichever is larger. An initial $500 will be paid with the amendment application. When applicable, the recurring Administration Fee will be reset accordingly.

Project Cost is defined as the total assessment amount less the TPA Application Fee.

To meet its commitment to lower rates as TPA becomes self-sufficient, the TPA board voted to lower rates in June 2017 and again in September 2019.

Once all documents and materials required as part of a PACE project application have been submitted, please allow 10 business days for review and evaluation. If approved, TPA will then issue a notice to proceed to closing.

Download Program User Guide