Go Green to Qualify for Additional SBA 504 Financing
Small businesses looking to grow and expand their operations through the purchase of commercial real estate and “go green” can benefit both the environment and their bottom line with up to 90% fixed interest rate financing under the SBA’s 504 Green Loan Program offered through Success Capital.
Lowering operating expenses without impacting your company’s quality or productivity makes good financial sense. Reducing your company’s energy consumption is an ideal way to accomplish this.
Success Capital’s 504 Green Loan Program is an effective way for businesses to get financing with below market interest rates (fixed for 20 years) and a 10% down payment. By including energy-efficient upgrades into the project, business owners can dramatically increase their long-term savings as well as reduce their out-of-pocket costs. Business owners can increase their ability to borrow by up to an additional 10% or $5.5 million for each project.
Contact us for more information about how the Success Capital Green Loan program can help you with your projects.
Why go “Green”?
- Using the SBA “Green” programs allows a borrower to exceed his overall SBA cap of $5,000,000 per individual. This enables a borrower to continue to utilize the benefits of the 504 Loan Program after they have met their statutory limitation.
- If a borrower is using energy reduction or renewal energy, they are eligible for an additional $500,000 in SBA loan financing. This increases the maximum loan that we can provid from $5,000,000 to $5,500,000 (per project).
- Business owners who quality for SBA 504 financing may actually be eligible for multiple SBA 2nd mortgages of up to $5.5 million per 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, which means business owners looking for additional 504 financing may be eligible even if they have committed or outstanding SBA loans.
How do you qualify for a “Green” project?
- The acquisition or construction of a replacement facility, or retrofit of a currently occupied or leased existing facility, with energy saving reduction. (Examples include: improved insulation; lighting; HVAC; efficient windows.) You will need to demonstrate a 10% reduction in energy consumption;
- The purchase or construction of a new building must demonstrate renewal energy inorder to generate 10% of its energy consumption from a renewable source (solar panels, wind, turbine or thermal).