SBA Energy Efficiency Financing

The SBA 504 Green Energy Program allows business owners to qualify for additional SBA 504 financing when they meet the energy efficiency requirements.

Under this program, the SBA 504 portion of the financing package is increased to a maximum of $5.5 million. There is no limit on the first mortgage amount, and therefore no limit on the total project cost. In many cases, projects over $25 million can still qualify for only 10% down.

When energy efficiencies are implemented, borrowers can exceed the traditional SBA maximum — and there is no limit to the number of SBA 504 loans you can take out.

So, if you already have outstanding SBA loans or you have reached your usual SBA lending limit of $5 million per borrower, you may be eligible for more SBA financing by going green!

There are two ways to qualify for additional SBA financing through this program:

1. Reduce energy consumption by 10% 

For example, installing energy-efficient lighting may reduce overall energy consumption as compared to your prior or pre-renovated building. New windows, insulation, HVAC or energy-efficient equipment may also help reduce consumption.

2. Generate renewable energy or renewable fuels to make up 15% of energy use

For example, installing solar panels and/or wind turbines to generate at least 15% of energy for business use.