SBA Green 504 Loan has multiple benefits:
- It allows for both larger SBA loans and multiple SBA loans to the same applicant(s).
- The Green 504 loan is a second mortgage that can be as much as $5.5 million, and the standard SBA maximum eligibility limits of $5 million per borrower do not apply. (Larger businesses are able to utilize multiple 504 loans on multiple buildings.)
- It also provides financing for both small and mid-size businesses to acquire, build or possibly refinance energy efficient buildings. The larger loan sizes are more suitable to larger businesses and the recently expanded maximum tangible net worth and income requirements of $15 million and $5 million respectively make it easier for larger businesses to qualify.
How to Qualify for the Green 504:
- Reduce Energy Consumption by at least 10%: The property must be a new facility that is replacing an existing facility or the retrofit of an existing facility that includes energy-saving technologies. Examples of energy saving technologies include improved insulation, lighting, HVAC systems, and energy efficient windows.
- Generate Renewable Energy: The project property must produce at least 10% of the energy used by the applicant at the project facility. Examples of renewable energy include solar, wind, geothermal, hydropower, and biomass.
Each borrow is eligible for an aggregate amount of $16,500,000 in SBA financing for projects funded with SBA Green Loans. Ready to learn more? Contact us today at 1-800-SBA-REAL.