Small businesses looking to grow their business can?qualify for commercial real estate loans under SBA 504′s Green Loan program. The SBA 504 Green Loan offers up to $5.5 million in financing per project from the SBA.? Small businesses can secure multiple SBA 504 Green Loans, each with a maximum of $5.5 million and an aggregate not to exceed $16.5 million in SBA financing. ?Individual projects can be greater than $16.5 million but keep in mind the combined cap with SBA Green lending.
- Larger SBA/CDC Loan Amount – SBA maximum contribution increases to a $5.5 million cap with no maximum total project limit.
- Higher Option for Aggregated Lending – Borrowers can have multiple SBA 504 Green Project loans with $16.5M aggregate cap limit on capital (up to the maximum SBA/CDC contribution of $5.5 million per project).
- Save Money – Reduction in energy costs will have long-term financial benefits for the business, while most energy improvements/equipment can be financed within the loan.
Borrowers need to meet one to qualify.
- GOAL 1: Reduce energy use by at least 10% Improvements to a building currently occupied by the borrower must show a minimum of 10% reduction in energy usage (compared to historical consumption) through upgrades in equipment such as improved lighting, insulation, HVAC, and other energy-consuming equipment. Borrowers purchasing or constructing a replacement property must relocate to a similar region (as determined by SBA) with the potential for similar historical energy consumption.
- GOAL 2: Generate at least 15% renewable energy The property must have upgrades performed that produce at least 15% renewable energy. Energy that can be produced includes solar, wind, geothermal, hydropower, and biomass.
- GOAL 3: LEED Certification* If historical energy consumption records for the property are not available, a project can qualify if it is built or retrofitted using LEED certification standards through the completion of upgrades. *Maximum SBA/CDC contribution $5.5 million per project
