SBA Green Energy Loans

INVEST in Green to Qualify for Additional SBA Financing

The SBA recognizes the importance of supporting businesses in reducing energy consumption. That’s why they have established Energy Related Public Policy Goals. These goals serve as valuable incentives for businesses participating in the SBA 504 Loan program and making investments in energy efficiency and renewable energy.

These incentives are designed to make it easier for borrowers to pursue their “Green“ projects. One of the benefits is that borrowers can go beyond the $5 million loan limit on 504 loans. Each “Green“ project is evaluated separately, so it won’t be affected by any other SBA 504 or SBA 7(a) loans you may already have in place. Additionally, the maximum amount for each “Green“ 504 Debenture is $5.5 million, and if you have multiple projects, you can go up to a cap of $16.5 million.


Energy Efficiency

Reduce your business’ energy consumption by 10% or more, either at your current location OR at a new location when compared to your previous location (cannot be used for start-up businesses).

Reduce energy consumption through the installation of:

  • Energy-Efficient Lighting
  • HVAC System Improvements and/or more Energy-Efficient Appliances
  • Insulation and Weatherization (new windows, added insulation)


Renewable Energy

Generate renewable energy or renewable fuels to generate 15% or more of the energy usage at your facility. All improvements or equipment required to generate the renewable energy or renewable fuels will be included in the 504 Project Cost.

Generate renewable energy with the installation of:

  • Solar Energy Systems
  • Solar Thermal (hot water)
  • Wind Energy Systems
  • Geothermal Systems (heating, cooling, hot water)