SBA 504 Loans for Energy Public Policy Projects
Energy Public Policy Projects, as explained in U.S. Small Business Administration Standard Operating Procedure Lender and Development Company Loan Programs (SOP 50 10), are eligible for potentially higher loan amounts and reduced restrictions on certain loan terms.
Key Financial Benefits of the SBA 504 Green Loan
Increased SBA maximum contribution from $5 million to $5.5 million per project, with a $16.5 million limit to aggregate contributions to the same owner.
Fixed rate financing up to 90% of the total project
Energy Public Policy Project Requirements
Energy Public Policy Projects fall under one of the three categories below:
Projects for the reduction of existing energy consumption by at least 10%.
Projects where renewable energy sources generate more than 15% of energy used at Project Facility.
Projects with 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-renewable resources and minimize environmental impact
For projects under categories 1 and 2 above, the Applicant must document the Energy Public Policy Project’s compliance through either an energy audit, engineering report, or other professional evaluation, as deemed appropriate by SBA, that is based on the annual energy usage at the facility or facilities (measured in actual energy usage, e.g. kilowatt hours, therms, or gallons, as applicable, not in dollar costs), and that, at a minimum, includes the following:
1. A description of the facility or facilities;
2. The current energy usage;
3. The projected energy usage, which must be based on all modifications and retrofits to building(s), and all installations of, and replacements and retrofits to, equipment; and,
4. The qualifications of the party performing the energy audit, engineering report, or other professional evaluation, each of which must be performed by an independent third party (by an entity other than the Applicant, the interim lender, the Third Party Lender, or any of their respective affiliates).
Dena Energy provides energy efficiency audits energy analysis by qualified professionals for SBA loan applications. Contact us today for a free consultation.