If the federal government offered your business a low-interest loan as a reward for saving money by taking a slice out of your enterprise’s energy usage, what would you think? Suppose qualifying were as easy as building or renovations that reduce energy usage by at least 10%, or produce at least 15% of energy from renewable sources, or meet LEED certification standards while. Doesn’t that sound like a good deal?
If it does, here is some good news: it already exists. Welcome to the SBA 504 Green Loan.
Businesses accessing the program may borrow more than standard SBA loans provide – up to $5.5 million per project. A business may take out multiple SBA 504 Green Loans with no aggregate cap on the number of loans or total amount borrowed.
The benefits of sustainable development go far beyond tax savings, of course. The reduction in energy use is good for Planet Earth, the utility bill, and the company image, as a responsible steward of the environment.
Using an Energy Modeling Report to Save Cash
Will your company’s new construction or renovation achieve the requisite energy savings or renewable production to earn the beneficial SBA lending? The only way to know before investing in the project is to commission an energy modeling report.
The engineers and tax specialists at National Tax Group employ an SBA-approved method that simulates the building’s energy use, taking into account its layout, local climate conditions, construction materials, HVAC, refrigeration, water heating, lighting, renewable generation, occupancy schedules and so much more.
With that data, NTG calculates annual power production and use, and compares it to prior years. Despite the plethora of research and calculations necessary, robust simulation tools that avert the need for a site inspection allow NTG’s energy modeling reports to earn a reputation for being done quickly and accurately.
Clients can use their report to support their application and expedite approval of their loan. Having prepared countless modeling reports over the decades, NTG’s work
As an added convenience for energy modeling report customers, NTG arranges the SBA financing as well, allowing customers to focus on their core business. Loans cover up to 90% of total project costs with long-term rates under 5% for varying term lengths that fit customer needs.
The loans help U.S. businesses make the commitment to invest in reducing its carbon footprint, saving money in the process.
It's Easy to Qualify for an SBA Green Loan
Businesses have myriad methods at their disposal of reaching the loan benchmarks. To achieve the usage reduction standard of 10%, upgraded HVAC, lighting, and/or insulation may be installed, conservation efforts may be strengthened, and/or insulation may be added to the building’s envelope, to name just a few strategies.
For new or retrofitted buildings, installation or upgrades of renewable energy sources most often involve solar, but may also include wind, hydropower, biodiesel, ethanol, hydrogen, geothermal and more. Absent historical standards in new construction poorly positioned to benefit from renewables, achieving LEED certification remains an option.
The three pathways to improved energy efficiency ensure that many U.S. businesses may access the 504 SBA Green Loan and chart of greener future.
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