SBA energy efficiency financing: Exceed traditional SBA loan limits by Going Green

Many SBA borrowers understand that the program has a cap — typically $5 million per borrower. Keep in mind that cap is only for the SBA-guaranteed portion of the loan, so, hypothetically, under the 50-40-10 structure, the amount you could borrow would be at least $12.5 million for SBA 504-eligible projects. Depending on your business and your local real estate market, you could do two or three projects before hitting this hypothetical limit.

Beyond that limit, TMC can still help you grow your business. The SBA has a provision that allows projects deemed green or environmentally friendly to qualify for an additional $5.5 million per project in SBA second-mortgage funds. Again, this $5.5 million per project is not reduced by other prior SBA loan amounts outstanding because it is a limit per project, not per borrower. This is for the SBA-guaranteed second mortgage, bumping the hypothetical amount borrowed to $13.6 million per project.

Many TMC borrowers have financed multiple properties under this program, opening new locations, building new facilities or renovating multiple properties. Our experts can help you qualify for this provision by identifying ways to reduce energy consumption, reliance on fossil fuels and/or non-renewable resources, or increased use of renewable fuels or sustainable designs…there are lots of available options. Use the form on the right or contact us to learn more.