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In an effort to encourage businesses to reduce energy consumption, the SBA has established the “Energy” Public Policy Goal, which gives valuable incentives to 504 borrowers who invest in energy efficiency and renewable energy. These incentives include the ability for the same borrower to exceed the $5 million loan limit and expand into multiple properties.

If the Project to be funded satisfies one of these goals, the project is eligible  even if it does not meet the job creation/retention requirements:


1) If you are a business that leases a building and you wish to purchase it, you must improve energy efficiency by 10% through renovation.

2) If you are a business wishing to relocate to another location in the same geographic area, you may qualify for the program by increasing energy efficiency by 10% in your new location, when compared to your existing facility.

3) 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-renewals resources and minimize environmental impact.


If you are a business that wishes to expand your operations into multiple properties, you must invest a portion of loan proceeds in renewable energy systems that reduce 10% of overall energy use. Renewable energy systems may include Solar PV, Solar Thermal (hot water), Wind, and Geothermal, Biomass or other renewable technologies.


The SBA 504 “Green” loan gives borrowers the ability to exceed the $5 million debenture loan limit per borrower, thereby enabling MULTIPLE projects (purchases or new builds) with up to a $5.5 million SBA loan component.  The program also gives borrowers that do not qualify under the job creation or minority status requirements a simple (and high return on investment) way to qualify.