PACE For Lenders
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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.
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:
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.
For detailed information about our fee structure, visit the Program Documents page >>
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.
The Texas Independent Banker features an article that highlights the TX-PACE advantages, protections, and economic opportunities for local banks. Read Texas Sets the PACE