solar panels on building

SBA 504 Green Loan: Everything You Need To Know (2021)

February 16, 2019

Small businesses looking to grow their business can qualify for commercial real estate loans under SBA 504′s Green Loan program. The SBA 504 Green Loan offers up to $5.5 million in financing per project from the SBA.  Small businesses can secure multiple SBA 504 Green Loans, each with the maximum of $5.5 million and an aggregate not to exceed $16.5 million in SBA financing.  Individual projects can be greater than $16.5 million but keep in mind the combined cap with SBA Green lending.

Key Benefits:

  • Larger SBA/CDC Loan Amount – SBA maximum contribution increases to a $5.5 million cap with no maximum total project limit.
  • Higher Option for Aggregated Lending – Borrowers can have multiple SBA 504 Green Project loans with $16.5M aggregate cap limit on capital (up to the maximum SBA/CDC contribution of $5.5 million per project).
  • Save Money – Reduction in energy costs will have long-term financial benefits for the business, while most energy improvements/equipment can be financed within the loan.



Borrowers need to meet one to qualify.

  • GOAL 1: Reduce energy use by at least 10% Improvements to a building currently occupied by the borrower must show a minimum of 10% reduction to energy usage (compared to historical consumption) through upgrades in equipment such as improved lighting, insulation, HVAC and other energy consuming equipment. Borrowers purchasing or constructing a replacement property must be relocating to a similar region (as determined by SBA) with potential for similar historical energy consumption.
  • GOAL 2: Generate at least 15% renewable energy The property must have upgrades performed that produce at least 15% renewable energy. Energy that can be produced includes solar, wind, geothermal, hydropower, and biomass.
  • GOAL 3: LEED Certification* If historical energy consumption records for the property are not available, a project can qualify if it is built or retrofitted using LEED certification standards through the completion of upgrades.
    *Maximum SBA/CDC contribution $5.5 million per project


“We were reportedly the first company in the nation to get a SBA 504 Green loan, which allowed us to buy our building, save energy and save money. By adding energy-efficient lighting, HVAC and other retrofits, we’ve saved about $11,000 a year which has helped us to further grow the company.” – Carlos Herrera, Owner of Interior Removal Specialist, Los Angeles


Download our SBA-504 Green Energy flyerContact a Loan Expert in your area today for more information on the SBA 504 Green Loan.