The SBA launched a Green Program to incentivize businesses to reduce energy consumption or generate renewable energy. Under this program, business owners who qualify for SBA 504 financing may be eligible for unlimited SBA 2nd mortgages of up to $5.5 million for each project. There is currently no limit to the number of green projects allowed to each borrower, which means that business owners looking for additional financing may now be eligible even if they have met SBA’s usual lending limits of $5 million per borrower, which means that business owners who previously reached their SBA maximum can now receive additional loans.
To qualify, you must either:
1 Reduce your business’ energy consumption by 10% or more
- Use hybrid or alternative fuel vehicles
- Use energy-efficient appliances
- Install a more efficient HVAC system
- Improve insulation (windows & skylights)
2 Generate renewable energy or renewable fuels
- Solar panels
- Wind turbines
To see if your project may meet these program guidelines and learn more about taking advantage of this “unlimited” 504 financing, contact one of our financing experts.