Written by Jessica Brown, Consultant
The Small Business Association (SBA) offers special, development focused, long term fixed rate loans for small businesses looking to expand or modify through the implementation of energy efficient upgrades.
SBA 504 Loans must be used for fixed assets, or soft costs in certain situations, including:
Purchasing long-term machinery
Constructing new facilities or modernizing, renovating or converting your existing facilities
Purchasing land or land improvements like, utilities, parking lots, landscaping, grading, and street improvements
Purchasing an existing building
Refinancing debt in connection with an expansion of the business through new or renovated facilities or equipment, with some restrictions involving working capitol and inventory
As of April 2019, the loan qualification requirements with increase 5% from the current 10% to the new compliance standard of 15% energy efficiency or solar generation. During the verification period to qualify for the loan, small businesses will gain valuable information about the utility cost reduction associated with energy upgrades.
Meeting the Loan Requirements: SBA 504 Energy Public Policy Goals
Small businesses applying for loans through the SBA 504 program can meet the requirements through the Energy Public Policy Goals (and qualify for an additional $500,000)
This requirement can be met by implementing energy efficiency measures or installing solar PV on-site
The SBA has recently increased their compliance requirement from 10% to 15% energy efficiency or solar generation, effective April 2019
Fulcrum Resources Environmental & UHG Consulting have partnered to provide clients with a team of experts able to provide the third party verification which is required to qualify