SBA 504 Green Loan Program
SBA-guaranteed 504 loans with higher limits ($5.5 million per project) for energy-efficient buildings and renewable energy projects.
About this program
The SBA 504 loan program provides long-term, fixed-rate financing of up to 90% loan-to-cost for the purchase of land, buildings, and major equipment by small businesses. Under the 504 Green Energy Public Policy goal, small businesses can access up to $5.5 million per project (vs $5 million standard) for projects that: (1) reduce energy consumption by at least 10%, (2) generate energy from renewable sources, or (3) produce or design products that promote energy efficiency. Small businesses can have multiple 504 Green Energy loans, while standard 504 loans are limited.
Eligibility
For-profit U.S. small businesses meeting SBA size standards. Project must meet one of the three 504 Green Energy public policy goals (energy reduction, renewable energy generation, or energy-efficient product manufacturing).
Requirements
- Identify a Certified Development Company (CDC) in your region
- Find a participating SBA 504 lender (bank or credit union)
- Develop project plan demonstrating qualification for one of three green criteria