The SBA 504 Green program allows for an aggregate of 16.5 million in total SBA loan proceeds, which is typically capped at 5 million. It is a variation of the traditional SBA 504 program, which includes a senior loan and a junior loan, with the latter being the SBA piece. With this program, up to 90% of total project costs can be financed, with 50% as senior debt, 40% as junior debt, and 10% as equity injection.
If you're looking to finance multiple small business projects, the SBA 504 Green program may be the solution you've been searching for. This program enables you to have an aggregate of 16.5 million in total SBA loan proceeds, which is a significant increase from the typical cap of 5 million for multiple SBA loans.
Watch the video below for more information about the SBA 504 Green loan program.
The SBA 504 Green program is a variation of the traditional SBA 504 program, which includes a senior loan and a junior loan. The junior loan is the SBA piece of the financing, and it can provide up to 90% of total project costs. This means that for a $10 million project, $5 million would be senior debt, $4 million would be junior debt, and $1 million, or 10%, would be equity injection. This breakdown is similar to the 50-40-10 financing model, where 50% is senior debt, 40% is junior debt, and 10% is equity injection.
One of the major benefits of the SBA 504 Green program is that it allows small business owners to finance multiple projects at once. This can be particularly useful for businesses that are looking to expand or make significant upgrades to their operations. For example, a manufacturer may be able to finance the purchase of new equipment and the construction of a new facility at the same time, rather than having to finance each project separately.
Another advantage of the SBA 504 Green program is that it can provide financing for green projects. The program is designed to support small businesses that are looking to make energy-efficient improvements to their operations, such as installing solar panels or upgrading to more energy-efficient equipment. By financing these types of projects, small businesses can not only reduce their environmental impact but also save money on energy costs in the long run.
In order to qualify for the SBA 504 Green program, a small business must meet the standard SBA 504 program requirements. This includes being a for-profit small business, operating primarily in the United States, and meeting the SBA's size standards. Additionally, the project being financed must be expected to create or retain jobs and have a positive impact on the community.
In conclusion, the SBA 504 Green program can be a valuable financing option for small businesses looking to finance multiple projects at once or make energy-efficient improvements to their operations. With the ability to receive up to 16.5 million in total SBA loan proceeds and financing for green projects, this program can help small businesses take their operations to the next level while also reducing their environmental impact.
If you're interested in learning more about the SBA 504 Green program and how it can benefit your small business, it is best to consult with one of our experienced commercial loan advisors.