SomerCor SBA 504 Green Loan

SBA 504 Green Loan

The SBA 504 Green Loan program is designed to assist small businesses for the acquisition of commercial real estate and heavy machinery/equipment. The SBA 504 loan program can also be used to refinance certain qualifying fixed-asset debt, providing an additional opportunity for small businesses to take advantage of the long-term, fixed-rate financing of the program. The program, updated in April 2024, now has no cap on the total project size and offers loans up to $5.5 million per project. To qualify, businesses must either reduce energy consumption by 10%, generate 15% renewable energy, or use sustainable design. These loans support energy upgrades while helping businesses save on long-term energy costs and contribute to environmental sustainability.

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Funding

 

SBA maximum contribution of $5.5 million cap with no maximum total project size limit. Borrowers can have multiple SBA 504 Green Loans with no aggregate cap limit on capital.


Administrator

SomerCor (Certified Development Company)

Eligible Projects


  • Reduce energy consumption by at least 10 percent (compared to historical consumption) through building upgrades.
  • Generate at least 15% renewable energy (solar, wind, geothermal, hydropower, and biomass) through property upgrades.
  • Increase the use of sustainable design, including design that reduces the use of greenhouse gas emitting fossil fuels or low-impact design that reduce the use of non-renewable resources and minimize environmental impact.


Building Sector

Smal businesses

Process

Businesses apply for loans through a CDC like SomerCor, and the process includes project qualification, SBA approval, and funding distribution.

Advantages

The program offers up to 90% financing for commercial real estate, equipment, renovations, and new construction. Businesses also have the advantage of a long-term (10, 20, or 25 year) fixed rate and a 10-year fixed term for machinery/equipment.

Additional Information

N/A

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