No More Cap on SBA 504 Green Loans

May 13, 2024

Hot off the presses is this procedural change regarding SBA 504 green loans!

In the past, the SBA 504 green loan program had a $16,500,000 cap. The SBA has announced, that starting in April, they have removed the cap.

Why Is This New Rule Important ?

  • Lifting the cap means that more borrowers can access this funding.
  • No more cap means that Green Loan funding is now available for bigger loans, including construction, acquisition and renovation.
  • The cap removal means that each project has no cap and each borrower has no cap in terms of green loans.

FAQ’s About the SBA 504 Green Loan Program

  • The SBA 504 Green Loan program encourages business owners to be energy efficient and to utilize renewable energy.
  • To be eligible for this funding, you must be creating either more efficiency or transferring your energy consumption to renewable energy in your business.
  • Typically renewable energy must be generating 15% of your energy needs.
  • Energy efficiency must result in utilizing 10% less from non-renewable energy sources.

Matching You with an Appropriate Lender

  • Not every lender has experience with 504 loans including Green loans.
  • Our GRP Capital team already know which lenders are interested in which industries and if they have geographic preferences. We also know which lenders have good reputations and have a high percentage rate of closing loans in a reasonable time frame.
  • Because the 504 program can take a little longer to close, it’s imperative for us to match you with a lender that we both trust.

From Term Sheet to Closing: Understanding the 504 Process

  • Once you have chosen a lender, our team goes into overdrive to get you to closing with a 504 loan.
  • In order to apply for SBA 504 funding, you have to utilize a Community Development Corporation or CDC. The CDC does the initial underwriting and makes sure that the loan will be acceptable to the SBA. We will help you select a CDC.
  • You will also be matched with a senior lender.
  • Our loan processing team, led by Keren Alpert, works directly with the underwriters at the CDC and the lenders as well as other third parties, like appraisers, attorneys, title agents and insurance agents. We know the process all the way until closing.
  • We work directly on your behalf, so you can work on running your business.
Please let us know if you are interested in financing for any of your business projects. Any member of our GRP Capital team would be happy to help you.

Whether you are investing in your first commercial business or expanding your existing portfolio, our in-house experts can help you identify and close on the right loan for your financing needs.
Our primary mission is to provide the most responsive, client-oriented financial services by offering competitive commercial and real estate loan products through a chain of banking and non-banking networks.
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