SBA Lifts Loan Cap for Clean Energy Projects to Boost Small Businesses

The Biden-Harris Administration is taking steps to support the clean energy economy. The U.S. Small Business Administration (SBA) has removed its 504 Loan Program cap on lending for clean energy projects. This move is part of a broader effort to advance the nation’s clean energy goals.

Supporting Small Businesses in Clean Energy

Administrator Isabel Casillas Guzman, head of the SBA, highlighted the importance of small businesses in the clean energy transition. She stated, “Small businesses and start-ups play a crucial role in innovating climate technology and adopting sustainable practices. This helps advance President Biden’s goal of net zero by 2050. As the Biden-Harris Administration invests in climate resilience, clean energy, and infrastructure, the SBA is ensuring small businesses have access to necessary capital. By removing the cap on 504 loans for energy projects, the SBA can better achieve this goal.”

The removal of the lending cap allows small businesses to secure multiple SBA 504 loans up to $5.5 million each. Previously, they were limited to a maximum of $16.5 million for “energy public policy projects.” These projects include reducing energy consumption through retrofits and renewable energy projects like adding solar panels.

This policy change is part of a suite of initiatives announced by the Biden-Harris Administration to encourage investment in climate and clean energy. The SBA continues to work with private capital markets to enhance capital access for small businesses in the clean energy sector.

Climate Capital Guidebook

The White House released a new Climate Capital Guidebook today. This guidebook provides a comprehensive map of federal financing programs available to climate-related small businesses and their investors. It complements the SBA’s Investing in America Small Business Digital Hub, which offers technical assistance to small businesses. The hub helps businesses access grants, loans, and market opportunities from the Biden-Harris Administration’s climate investments.

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This article, "SBA Lifts Loan Cap for Clean Energy Projects to Boost Small Businesses" was first published on Small Business Trends