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SBA 504 Green Loans

The SBA 504 Green Loan is available to help qualifying small business owners continue to grow through these difficult times. COVID-19 has thrown our economy into crashing uncharted waters, and small businesses have taken the brunt of it.

With the help of the SBA 504 Green Loan, small business owners looking to replace, and or purchase real estate or heavy equipment can move forward with their projects and continue to grow and support our resilient communities.

Key Financial Benefits of the SBA 504 Green Loan:

  • The SBA maximum contribution increases from $5 million to $5.5 million per project, with a $16.5 million limit to aggregate contributions to the same owner. The additional $500,000 does not apply to Goal 2 Sustainable Design (see below for details).

  • Fixed rate financing up to 90% of the total project

  • Term length of 10, 20, or 25 years

Green Building Benefits:

  • Energy savings due to energy reduction changes

  • Reduced operating costs

  • Increase in profits due to utility savings

  • Reduced carbon footprint

  • Sustainable marketing opportunity

  • Improved indoor air quality

Loan Requirements/Eligibility:

Goal 1 Energy Reduction: Reduction of existing energy consumption by at least 10% (this cannot apply to a startup business, however, existing business buying a building may be eligible if the new location uses at least 10% less energy than the prior location).

Goal 2 Sustainable Design: Increased use of sustainable designs, including designs that reduce the use of greenhouse gas emitting fossil fuels or low-impact design to produce buildings that reduce the use of non-renewable resources and minimize environmental impact.

Goal 3 Renewable Energy: Installation or upgrade of renewable energy sources at the property. This can include solar or wind production, or utilization of renewable fuel such as ethanol or biodiesel. Once installed, at least 15% of the building’s total energy must be derived from these renewable sources.

Loan Application Process:

Find a Certified Development Company (CDC) near the location of your business to facilitate the loan application process. All three goals require a third party verification report completed by a qualified engineer. The report is submitted as part of the loan application to the SBA and confirms the changes made to the property meet the minimum SBA green energy requirements.

To assist in the process of identifying a CDC lender and third party verifier visit UHG Consulting’s extension website. Our team of energy experts are here to answer your questions about SBA 504 Green Loan projects and requirements.

Small businesses are the glue to the American economy and the keystone to the strength of our communities; financing through the SBA 504 Green Loan can help business owners save now and in the future, while contributing to a more sustainable


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