The SBA's energy efficiency program is designed to incentivize businesses to reduce energy consumption or generate renewable energy. Under this program, business owners can exceed the traditional SBA 504 project limits. A business may borrow up to $16.5 million in SBA funds, with a $5.5 million per project maximum. There is no maximum total project size, and no limit to the number of 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. Business owners who had previously reached their SBA maximum may now qualify for additional SBA loans.
To qualify, you must either:
1 Reduce your business’ energy consumption by 10% or more
- Installing energy-efficient lighting
- Using hybrid or alternative fuel vehicles
- Installing a more efficient HVAC system and/or more energy-efficient appliances
- Improving insulation (new windows & skylights)
2 Generate renewable energy or renewable fuels to generate 10% or more of energy usage
- Installing solar panels
- Installing wind turbines
To see if your project may meet these program guidelines and learn more about taking advantage of this additional 504 financing, contact one of our financing experts.