SBA 504 GREEN LOAN PROGRAM

Small businesses looking to grow through the purchase of commercial real estate and “go green” can benefit the environment and their bottom line under SBA’s 504 Green Program.

Go Green with Evergreen to Unlock the Secret to Financing Multiple SBA 504 Projects

Business owners who qualify for SBA 504 financing may be eligible for SBA 2nd mortgages of up to $5.5 million per 504 “green friendly” project. There is no limit on the number of SBA 504 green projects allowed to each borrower under the SBA’s Green Public Policy Goals.  Funds for this program are not limited by the SBA’s usual aggregate lending limit of $5 million per borrower, which means business owners that previously reached their SBA maximum have the ability to receive additional loans.

Additionally, there is no limit on the amount of the 1st mortgage of a 504 project and therefore no maximum project size. In many cases, qualified borrowers with projects exceeding $20 million can still obtain up to 90% financing.

Benefits of the 504 Green Loan Program

  • Up to 90% financing at below-market, fixed interest rates – No future interest rate fluctuations.

  • Up to $5.5 million on the SBA 2nd mortgage portion per project with no limit on overall project size.

  • Finance multiple SBA 504 green loan projects.

  • 10- and 20-year amortization terms available.

How to Qualify for SBA 504 Green Loan Proceeds

The following “green friendly” initiatives are eligible for up to $5.5 million per project of SBA 504 financing provided they reduce energy consumption by at least 10% or generate at least 10% renewable energy:

  • Energy Reduction – Acquisition or construction of a replacement facility or retrofit of a currently occupied facility with energy saving technologies. Examples include improved energy efficient windows, insulation, lighting, and HVAC systems.

  • Renewable Energy – Upgrades of renewable energy sources (solar, wind, turbine, thermal) used to run a facility or renewable fuel producers, including bio-diesel and ethanol producers.