Improve Energy Efficiency with 504 SBA Loans Through May 2010
The U.S. Small Business Administration (SBA) is encouraging small businesses to go green. The SBA has a variety of resources and information on
energy efficiency available to small business owners looking to cut costs and contribute to a cleaner environment. Business owners who are just
beginning to research possible changes can find information on everything from simple energy efficiency tips to cost savings calculators for making
substantial energy upgrades.
For those business owners who have pinpointed the upgrades they'd like to make, the SBA provides loans to finance energy efficient improvements.
The SBA Certified Development Company (504) loan program helps small businesses "make significant capital improvements including extensive
plant/office renovations to increase energy efficiency overall." On April 15th, President Obama signed legislation that will provide an additional $80
million in funding to continue supporting SBA loan programs. The SBA may continue to reduce loan fees on 504 program loans through May 2010 or
until funds are exhausted.
An SBA loan would finance approved energy-efficient appliances, purchase of hybrid or improved mileage vehicles, alternative fuel for vehicles,
energy-efficient power, wind and solar power, increased-efficiency systems, and increased insulation. The 504 loan program provides larger
commercial real estate and equipment loans to build new facilities, or finance renewable, green energy equipment. There is also a green retrofit
refinance available to qualified businesses.
Businesses with net income of up to $3 million can now qualify for the 504 program loans, with as little as 10% down and 10% equity. In a time when
many small businesses are struggling to qualify for financing, SBA business loans are a viable option for those business owners who want to have a
positive environmental impact. Studies show a growing percentage of consumers who look for green companies to do business with, so the