Small businesses looking to grow their business can qualify for commercial real estate loans up to $20 million under SBA-504′s Green Energy Loan program.

The SBA 504 Green Loan combines up to $5.5 million from the SBA/CDC with a bank’s contribution to reach the total of up to $20 million.  Small businesses can secure an unlimited number of these loans, each with the maximum of $5.5 million in SBA financing. A typical SBA-504, non-energy loan, maxes out at $5 million.

Key Advantages of SBA-504 loan over conventional business loans

  • Low down payment – the business owner invests only 10% down, borrowing up to 90% of the total financing need, thus preserving cash for the business.
  • Longer repayment terms – SBA repayment periods are longer than conventional bank loans – 20 years fully amortized for real estate loans and 10 years fully amortized for equipment loans. The small business owner’s monthly loan payment is more affordable, improving cash flow.
  • Fixed interest rate – below-market
  • Projected income consideration – CDC considers projected income of a business in addition to historical cash flows. This is particularly advantageous for growing businesses.

Secondary source of payment less critical – With the SBA-504 loan guarantee, collateral may be less critical in qualifying a borrower for a loan.

Each SBA 504 Green Loan can provide up to $5.5 million in SBA/CDC financing when used to purchase, build, convert or expand a building that meets one of the following criteria:

Reduces company energy consumption by at least 10%

(e.g. solar, efficient lighting, improved insulation)

Produces renewable energy

(e.g. wind, solar, biomass, hydropower, geothermal)

ABOUT:

  • Owner-Occupied properties (51% or more owner occupancy)

  • Up to 90% LTV

  • Nationwide coverage

  • SBA and conventional lender options (504 and/or 7(a) programs)

  • Tenant Improvement, value add, clean energy financing possible

  • Short and Long Term fixed or floating programs available

© Copyright 2019 - AllGreen Funding. All material herein and videos are for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. AllGreen is not a licensed broker, broker dealer, market maker, investment banker, investment adviser, analyst, or underwriter. There are risks involved. AllGreen is not an analyst and investing in securities such as the ones listed within are for high risk tolerant individuals only and not the general public.

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