Deal marks the first Commercial PACE (C-PACE) loan to close under the Missouri Clean Energy District’s new FASTPACE Program, which makes it easier for small-business owners to access C-PACE loans through community lenders
ST. LOUIS COUNTY, Mo.–(BUSINESS WIRE)–The Missouri Green Banc, a nonprofit green lender and affiliate of the Missouri Clean Energy District (MCED), and Allectrify, a public benefit corporation that specializes in helping banks offer C-PACE loans to developers and small-business owners, announced today the closing of a $400,000 C-PACE loan to finance the installation of solar PV systems for Porter Farms in Mercer County, Mo. The Missouri Green Banc provided the loan with funding from the U.S. Department of Agriculture.
The C-PACE loan to Porter Farms is the first to close under MCED’s new FASTPACE Program, which is designed to make it easier for developers and small-business owners to access C-PACE financing through local banks, credit unions, and green lenders like the Missouri Green Banc. Allectrify administers the FASTPACE Program on behalf of MCED.
“For over 100 years, the Porter family has grown corn and soybeans in northern Missouri,” said Lori Porter, owner of Porter Farms. “Our new solar PV system will help us lower our energy costs and stay competitive. The FASTPACE Program was good for my family and our business.”
Commercial PACE is a financing mechanism that enables developers and property owners to obtain long-term financing for eligible improvements with no money down, and then pay for their project through a voluntary property tax assessment. Access to C-PACE financing is particularly critical for small-business owners that cannot afford the high upfront costs and higher annual payments that are often associated with traditional, shorter-term bank loans.
“The Missouri Green Banc was pleased to provide this FASTPACE loan to Porter Farms,” said John Harris, Director of Finance for the Missouri Green Banc and the Missouri Clean Energy District. “There is a lot of demand for solar PV here in Missouri, and this project is a great example of that. We’re hoping more banks, credit unions and CDFIs will realize that FASTPACE is not only a critical financing option for small-business owners, but also a potential profit center for the banks.”
In recent years, many national C-PACE lenders have stopped offering C-PACE loans for energy improvement projects below $2 million. This trend adversely impacts millions of small-business owners across the country who might only need $250,000 for high-efficiency HVAC equipment or $400,000 to install a solar PV system. The FASTPACE Program addresses this problem by making it easier for more community banks, credit unions and CDFIs to offer C-PACE loans to their clients. These community lenders might also finance energy upgrades to hotels and shopping centers, but FASTPACE makes it profitable for them to serve small businesses too.
“Allectrify was delighted to partner with the Missouri Green Banc so that Porter Farms could obtain a C-PACE loan for their solar PV system,” said Colin Bishopp, Allectrify’s CEO. “Across the country, there are millions of small-business owners like the Porter Family who need access to long-term financing for energy improvement projects. That means every community bank and credit union in the country has an opportunity to become a profit-driven green lender. Allectrify’s mission is to make that happen.”
About the Missouri Green Banc
The Missouri Green Banc is a nonprofit green lender that works with public and private sector partners to offer inclusive financing solutions for clean energy and building decarbonization, especially in underserved rural and urban communities. As an affiliate of the Missouri Clean Energy District, the Missouri Green Banc’s partners include more than 300 cities and counties across the State of Missouri. To learn more, visit https://missourigreenbanc.org/
About Allectrify
Allectrify is a public benefit corporation that offers financing and technical assistance for renewable energy and building decarbonization. Our FASTPACE platform enables banks, credit unions and CDFIs to offer C-PACE financing to property owners, efficiently and profitably. For more information, visit https://allectrify.com/
Contacts
Colin Bishopp
(202) 550-7570
colin@allectrify.com
