Additional SBA financing: qualify with these energy efficiency improvements
SBA 504 loans benefit business owners by combining a low down payment with long-term, below-market interest rates. Adding energy efficient upgrades when you buy, build or renovate a building and you can dramatically lower your occupancy costs.
Under the SBA energy-efficiency program, there is no limit to the size of projects and business owners can exceed the traditional project limit using the SBA 504 program. A business may borrow up $16.5 million from the SBA, with a $5.5 million per project maximum.
There are two ways to qualify for additional SBA financing through this program:
- 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.
- Generate renewable energy or renewable fuels to make up 10% of energy use
For example, installing solar panels and/or wind turbines to generate at least 10% of energy for business use.