Business owners looking to purchase or construct commercial real estate can secure multiple 504 Loans (up to $5.5 million for each project) for projects that meet SBA’s green standards.
Program benefits:
- Larger Loan Amounts: The Green 504 loan is a second mortgage that can be as much as $5.5 million per project. The SBA 504 maximum eligibility limits of $5 million per borrower do not apply and larger businesses are able to obtain 504 loans on multiple buildings.
- Money Saving: Reduction in energy costs will have long-term financial benefits for the business, with energy improvements financed within the loan.
- Waives Job Creation/Retention Requirements: The usual SBA 504 job creation/retention requirements do not apply, making larger loans for businesses with fewer employees possible.
Eligible Use of 504 Green Loan Proceeds
The following green initiatives are eligible for up to $5.5 million per project of SBA 504 financing provided they:
- 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.
Contact a TCM Loan Officer for more information.
