SBA Loans

Looking for financing to upgrade your facility?

The U.S. Small Business Administration (SBA) Exit ENERGY STAR offers several loan programs that can be used to help entrepreneurs retrofit facilities and buy energy efficient equipment. Some restrictions apply, visit the SBA loan program Web site for details.

The 7(a) Loan Guaranty Program Exit ENERGY STAR is one of SBA's most flexible loan programs. Proceeds from a 7(a) loan can be used for construction, renovation or leasehold improvements; and the acquisition of machinery and equipment. This means eligible small businesses can use the loan to purchase ENERGY STAR and other energy-efficient equipment and lighting fixtures, or to retrofit an existing facility so that it is more energy efficient.

The 504 Certified Development Company (CDC) Program is a loan program that can help small businesses expand with fixed-asset financing for real estate, construction, renovation and equipment acquisition — including energy efficiency upgrades. Proceeds from 504 loans can be used for modernizing, renovating, or converting existing facilities, or purchasing long-term machinery and equipment. There is an economic stimulus requirement for this loan. Generally, a business must create or retain one job for every $35,000 provided by the SBA.

For additional information about SBA's 504 loan and to get a listing of the Certified Development Companies who arrange SBA 504 loans, visit the National Association of Development Companies Exit ENERGY STAR (NADCO)'s Web site.

SBA has two more specialized loan programs:

Energy Conservation Loan

The Energy Conservation Loan Exit ENERGY STAR is for small businesses who design, engineer, manufacture, distribute, market, install, or service energy devices or techniques designed to conserve the Nation's energy resources. Eligible energy conservation devices or techniques include solar thermal equipment; photovoltaic cells and related equipment; and products or services that increase the energy efficiency of existing equipment. The Energy Conservation Loan is not designed for the end user, but for the person who builds, installs, or services these energy measures. End users can finance their energy measures by using the basic 7(a) program.

Pollution Control Loan Program

The SBA also offers Pollution Control Loans Exit ENERGY STAR which are intended to provide loan guarantees to eligible small businesses for the financing of the planning, design, or installation of a pollution control facility. This facility must prevent, reduce, abate, or control any form of pollution, including recycling.

State Energy Efficiency Financing Programs

Many states operate low interest loans and other subsidies to help small businesses become more energy efficient. Nearly all states offer some kind of technical assistance with ENERGY STAR and other energy efficiency programs. You can find a list of state offices on the National Association of State Energy Officials Web site Exit ENERGY STAR. Just click on the map to get the contact information for your state and call to receive technical information or find out if that state currently has any financing opportunities.