SBA 504 Green Program

SBA 504 Green Program

The SBA 504 Green program often flies under the radar as a source of small business capital. However, it’s a great option for qualified businesses. The program was established to encourage small businesses to reduce their carbon footprint. There are considerable benefits and incentives for borrowers who invest in renewable energy initiatives. Live Oak’s team of SBA loan experts can discuss your options and if you’d be a good candidate for an SBA 504 Green loan.

Incentives
There are three key incentives for the SBA 504 Green loan program. Not only are these incentives advantageous for achieving your business goals, but the program will also help reduce energy consumption, thus lowering your operating expenses.

  1. Increase of the aggregate loan amount per borrower from $5 million to $16.5 million
  2. Increase of the loan amount per project from $5 million to $5.5 million
  3. Waiving of SBA job creation rules, ideal for businesses with few employees

Qualification
There are several avenues to obtain qualification for the SBA Green loan program.

  1. A borrower may include an energy efficient upgrade that generates 15% of the overall annual energy usage. This applies to new construction or an existing building and is required if you’re expanding. Examples include improved lighting, solar panels, insulation, HVAC and other energy efficient upgrades.
  2. If a business leases a building and wants to purchase it, they may qualify through energy efficiency measures that reduce energy consumption by 10%. Live Oak Bank has relationships with companies that can do LEED Certification assessments to determine if the project qualifies.

The 504 Green loan program offers an opportunity to unlock additional capital for your small business while also going green. Be sure to talk with your Live Oak loan expert about this program to see if you qualify. You can connect with a loan specialist here for more info.