Why Should My Small Business Go Green?
You’ve heard the arguments in favor of conservation and environmentalism on a global scale, but are you aware of all the benefits of running a green business? There are plenty of practical reasons to go green, as well as altruistic ones. A green business is cheaper to run, healthier to work at and more attractive to other businesses and the public. Here are some of our favorite reasons your small business should go green:
- You Conserve Resources and Save Money
Reducing consumption or waste of materials, energy and water is a major money saver for business owners. Besides economizing around the office, many businesses are able to reduce packaging materials and save on waste carting. Another way you can save is by buying reconditioned office equipment, buying in bulk (thus reducing packaging) and reducing the use of disposable products.
- You Improve Your Workplace
Extensive studies have shown that green workplaces are more productive than others, with healthier and more contented workers. Employees of green companies feel a greater sense of common purpose and personal involvement in their jobs as well. Even touches like natural lighting and potted plants can have a beneficial effect. This pays off with higher productivity, longer employee retention times and less sick time.
- You Create the Right Image
Conservation is the way of the future. A green company is a market leader, and some of the largest corporations in the world, are staking their places at the forefront of the market. Small businesses can do the same. There is advertising value in environmentalism, too. Consumers will remember environmentally friendly companies and the press is often happy to cover their efforts.
- You Are Able to Serve the Green Consumer
The green market can be highly interconnected. All businesses, especially those engaged in business-to-business services, can save money by using environmentally friendly suppliers. Businesses can also attract new clients by being that kind of supplier. The consumer market also responds to environmentalism. People pay attention to environmentally friendly companies, often are willing to spend extra money with them and remain loyal to them.
- If you Follow the Law, You Reap the Reward
Sometimes being green is the law. There numerous environmental regulations at all levels of government, including the federal government. States and localities may also have extensive environmental law; California is an example of a state with robust environmental protection. You can find government incentives to protect the environment as well: there are tax credits and deductions available, as well as a variety of grants are offered by both private and governmental sources.
The SBA 504 Loan Green Energy Program
The Small Business Administration (SBA) encourages energy efficiency and conservation in small businesses through its Green Energy Program. This program provides eligible borrowers in the 504 loan program the opportunity to receive additional funding for multiple projects. The Green Energy Program raises the maximum on the SBA portion of the 504 loan from $5 million to $5.5 million, and extends traditional project limits and funding to up to $16.5 million.
A 504 loan can be used to:
- purchase land or buildings
- construct, upgrade or renovate buildings
- purchase equipment with a service life of ten years or more
- refinance conventional debt
To qualify for the Green Energy Program, you must incorporate at least one of the following activities into the project being funded:
- Buy or construct a building that consumes 10% less energy than your current location
- Make upgrades to the building you own to consume 10% less energy, or buy the building you now lease and do so
- Buy or construct a building that produces 10% of the energy it consumes or that produces fuel to reduce fossil fuel consumption, or buy equipment to do so at your current location
The 504 loan provides accessible financing with flexible and cost-effective options designed to help your small business grow. Combined with the Green Energy Program, it is an exceptional opportunity for small business owners.
You can find out more about the SBA Green Energy Program from one of TMC Financing’s 504 loan experts. TMC is an SBA Premier Certified Lender and a high-volume loan provider. With over 35 years of experience, TMC can help you find the financing that is best for you and guide you through the 504 loan process. Contact TMC Financing today.
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