The U.S. Small Business Administration has expanded the SBA 504 Loan Program to help clean energy projects access capital. This effort is part of a larger initiative by the Biden-Harris Administration to encourage investments in the clean energy economy.

As of May 30, 2024, any project that qualifies for the SBA 504 program and has a clean energy component can borrow up to $5.5 million without being subject to previous SBA lending caps. Before this rule, small businesses owners could borrow up to $16.5 million in SBA loans. Now, if their project includes a clean energy component, that cap is no longer applied. 

Eligible projects could be as simple as installing solar panels or as complicated as building a new clean energy manufacturing facility. Each qualifying SBA 504 loan is still subject to a maximum amount of $5.5 million. To learn more about whether your project qualifies, contact OSDC to discuss specific rules.

From the SBA

The SBA issued a Procedural Notice outlining the specific eligibility rules for clean energy projects and how this changes the SBA 504 Program and SOP 50 10 7.1.

Additional Resources

The new Climate Capital Guidebook outlines several financing programs available to businesses that want to participate in the clean energy economy. Want to learn more about how these federal programs work and which ones your small business may qualify for? Contact OSDC to research which programs are a good fit and how they could be combined for maximum savings.

Don’t Forget!

The 48C Qualifying Advanced Energy Project Tax Credit from the U.S. Department of Energy is an ideal fit with an SBA 504 loan. Applications for the tax credit program are due by June 21, 2024. Learn more on the OSDC blog.