SBA's Improving Energy Use and Efficiency for Small Business
Nationally small businesses spend more than $60 billion on energy each year. Small businesses that invest strategically can cut utility costs 10 to 30 percent without sacrificing service, quality, style or comfort – while making significant contributions to a cleaner environment.
Many projects will require little expense. However, for those that require capital, SBA loan-guaranty programs can ease the way to go green.
With a 50 percent SBA-backed guaranty, and an average loan of $35,000 with its maximum loan size of $350,000—SBAExpress is an excellent loan program to help small businesses adopt green practices. The SBAExpress program offers a streamlined application process making it easier to apply for these loans. And, all of SBA’s 7(a) loan programs can be used by small businesses to fund green improvements.
Small businesses can also take advantage of SBA’s Certified Development Company (504) loan program to make significant capital improvements including extensive plant/office renovations to increase energy efficiency overall.
SBA Loans Finance Energy-Efficient Improvements:
• Energy-efficient appliances
• Alternative fuel for vehicles
• Replacing transportation fleet with hybrid vehicles
• Purchase of improved-mileage vehicles
• Increased efficiency, HVAC, heat pumps, geothermal energy
• Energy-efficient doors, windows, skylights
• Increased insulation
• Wind and solar power
• Energy-efficient power and light bulbs
Savings small businesses make from adopting energy improvements, also include federal energy tax
savings for the tax year of 2010.
For more information on the SBA loan programs, check out the Web site at:
For additional information about energy efficiency for small businesses, visit the SBA Web site at www.sba.gov/energy.
Have a question about going green? Connect with a SCORE mentor online or in your community today!