SomerCor SBA 504 Loan

  • Program Name: SBA 504 Green Loan
  • Administrator: SomerCor (Certified Development Company)
  • Program Summary: 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.
  • Applicable Building Size: Any owner-occupied commercial real estate; new ground-up construction is also eligible.
  • 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.


  • 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.
  • 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.
  • Disadvantages: Requires meeting specific energy reduction or sustainability goals, which may limit eligibility for some businesses.
Download the SBA 504 Loan Flyer
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