SBA Increases Maximum Loan Amount for CA Lenders and Removes 504 Cap for Green Projects

July 25, 2024

Delaney Sexton
Contributing Editor

SBA Increases Maximum Loan Amount for CA Lenders and Removes 504 Cap for Green Projects

“Small businesses and homes account for more than one-third of U.S. emissions, so it is vital that they are part of the solution. The SBA’s new Green Lender Initiative aligns private capital with investments in America so that more mission-driven climate lenders can leverage the SBA federal loan guarantee programs to fund the small business clean energy transition,” says Administrator Guzman

The new Green Lender Initiative expands the Community Advantage program by allowing all CA SBLCs to make loans of up to $500,000. SBA will be opening an application process for lenders to expand that loan maximum even further to $1 million or $2 million for climate projects. Additionally, SBA will be expanding the geographic areas for CA lending, which lenders will also have to apply for. In the near future, SBA is providing information on the application process for CA SBLC licenses in the Federal Register.

Under the 504 program, the cap on lending has been removed for clean energy projects. While energy public policy projects were limited to three 504 loans of $5.5 million each (a maximum of $16.5 million), businesses may now secure as many 504 loans up to $5.5 million as they are qualified for.

“SBA loans have been assisting small businesses and the lenders who support them for decades,” says Katie Frost, Associate Administrator for SBA’s Office of Capital Access. “The SBA is excited to welcome green banks and similar institutions into SBA lending, to capitalize on these benefits and broaden their support to more American small businesses.”

Sources:
Green Lender Initiative Press Release
504 Cap Press Release