The UMVRDC Property Assessed Clean Energy Revolving Loan Fund or “PACE RLF” offers eligible commercial property owners financing for energy improvements. Property owners repay their PACE loan through an assessment levied against their property which is payable in semi‐annual installments on their property tax bills.
GEOGRAPHIC ELIGIBILITY
Eligible properties must be located within the Big Stone, Chippewa, Lac qui Parle, Swift and Yellow Medicine Counties.
FUNDING
- The UMVRDC has a minimum funding of $5,000.
- Projects over $100,000 may be referred to another PACE lender.
- Maximum loan amounts are limited to 30% of the assessed or appraised value of the property.
Interested in learning more about PACE? The Clean Energy Resource Team is here to help! Learn more
PACE ApplicationELIGIBLE PROJECT EXAMPLES
To qualify for a PACE loan, an energy audit is required to show a net reduction in energy consumption or green house gas emissions. Common projects include:
- Rooftops
- Building Envelopes
- Windows
- Solar
- HVACincluding geothermal
- Water conservation
- Boilers + Chillers
- Lighting
- Refrigeration
- Compressed Air
- EV chargers
LOAN REPAYMENT
Real estate taxes are due May 15th and October 15th. PACE special assessment payments are due at this same time.
ELIGIBLE PROPERTY
- Commercial Properties (retailoffice, etc.)
- Farming Operations
- Industrial Properties (mfg., warehouse, etc.)
- Multifamily Housing (5+ units)
- Nonprofits
Qualifying commercial real property includes new construction.
The property must be free of any encumbrances or matters affecting title, such as:
- Mortgages, liens, judgments, or claims of lien
- Federal tax liens or bankruptcy filings
- Court orders, decrees, death certificates, or probate proceedings
- Property settlement agreements or tax warrants
- Incompetency or other legal proceedings affecting ownership
- Existing mortgages with a current payment history are allowed.
Property title is in the borrower(s) name
ELIGIBLE BORROWERS
Property owners may be associations, business entities (both for‐profit and non‐profit), cooperatives, and nearly any owner which pays secured real property taxes. UMVRDC PACE is not available for residential property (other than multifamily dwellings of five or more units) or property that is not subject to secured property taxes, such as governmental entities.
Loans can be granted to U.S. citizens, legal permanent residents (LPRs), and non-citizens with an appropriate work visa. For non-citizen borrowers, legal status documentation is required. LPR business owners must provide proof of LPR status, such as a green card or valid immigration visa. Non-citizens without LPR status must show both authorizations to work and legal status. If a borrower lacks the proper work authorization, they cannot receive an RLF loan.
- Business must be in good standing with the Mn Secretary of State as verified by UMVRDC staff online.
- Business financial analysis must demonstrate an ability to repay.
- A 720 minimum credit scores for principal borrowers, exceptions to minimum credit score will be noted in file and approved by loan advisory board.
- Borrowers must be current on property taxes.
- Borrowers must be current on mortgage(s).
ELIGIBLE COSTS:
Eligible costs include the cost of eligible equipment and installation. Installation costs may include, but are not limited to, energy evaluation consultations, labor, design, drafting, engineering, permit fees, and inspection or verification charges. Final inspection or verification by a building inspector (where required) will ensure that the improvements are completed and compliant with all applicable building codes.
Tax credits, rebates, or other grants received by the borrower will not be deducted from UMVRDC PACE Financing. These credits, rebates or grants can be used by the borrower to pay down the loan or for general cashflow.
ENERGY AUDIT REQUIREMENTS
Eligible Improvements must have been identified in an energy audit, renewable energy system feasibility study, resiliency improvement study, or water improvement study or agronomic or soil health assessment to be conducted on the qualifying commercial real property and reviewed by the UMVRDC prior to approval of the financing.
Property owners may include the cost of the energy audit, renewable energy system feasibility study, resiliency improvement study, or water improvement study in the application for UMVRDC PACE financing.
Energy audit must be completed by a qualified energy auditor. Qualified professionals include:
- Certified energy auditors (CEA)
- Certified Energy Managers (CEM)
- Other certifications will need to be reviewed and approved by MN Dept of Commerce.
A copy of the auditor’s certificate must be included with the completed audit and will be retained with the project loan file.
The energy audit report must include a written report of recommended energy improvements with calculations for the expected cost of the improvements and the projected savings. At a minimum, this review will present the following information on the PACE audit summary sheet.
CONTRACTORS
Borrowers must use certified contractor to complete project
Contractor agrees to federal labor standard requirements and reporting
Dalen Roe, Loan Specialist
Phone: 320.289.1981 x 102
Email: Dalen@umvrdc.org
The views expressed herein do not necessarily represent the views of the U.S. Department of Energy or the United States Government.
This material is based upon work supported by the U.S. Department of G – Upper Minnesota Valley Regional Development Commission – Commerce Rev. 7.01.2025 Docusign Envelope ID: BD607874-950E-488B-9627-435C42535D93 Energy’s Office of State and Community Energy Programs (SCEP) under Award Number DEEE0010347.
