The Small Business Administration is looking to attract lenders to finance small businesses’ clean energy projects. The SBA doesn’t give out loans itself. Instead, it works with lenders to offer small businesses loans that often carry lower interest rates than traditional loans.
Quick Read
- The Small Business Administration (SBA) is expanding its clean energy loan program to attract lenders for financing small businesses’ clean energy projects.
- The SBA itself doesn’t provide loans but partners with lenders to offer lower interest rate loans to small businesses.
- The SBA aims to involve a range of lenders, from microlenders to nationally oriented financial institutions.
- Lenders can apply to become microlenders offering loans up to $50,000, Certified Development Companies focused on community economic development, or Community Advantage Small Business Lending Companies (CA SBLCs) focused on mission-driven projects.
- The SBA will soon accept new applications for CA SBLCs and increase the loan cap from $350,000 to $500,000 for active CA SBLCs.
- The SBA is introducing a process for CA SBLCs to apply for loans up to $2 million to finance climate-related projects.
- SBA Administrator Isabel Guzman emphasized the importance of involving small businesses in the clean energy transition, noting that they account for more than one-third of U.S. emissions.
- The initiative aims to help more climate-focused lenders leverage SBA federal loan guarantee programs to fund the clean energy transition.
The Associated Press has the story:
The Small Business Administration expands clean energy loan program
Newslooks- NEW YORK (AP) —
The Small Business Administration is looking to attract lenders to finance small businesses’ clean energy projects. The SBA doesn’t give out loans itself. Instead, it works with lenders to offer small businesses loans that often carry lower interest rates than traditional loans.
The SBA wants to bring in lenders ranging from hyperlocal microlenders to nationally oriented financial institutions. Lenders can apply to become a microlender — offering loans up to $50,000; a Certified Development Company, which is a nonprofit focused on economic development of its community; or Community Advantage Small Business Lending Company, or CA SBLC, which is a non-bank lender focused on “mission driven” projects.
New applications for CA SBLCs will be accepted soon. The SBA is increasing the cap for loans from active CA SBLCs to $500,000 from $350,000. And it is introducing an application process where the CA SBLCs can apply to offer even bigger loans — up to $2 million to finance climate-related 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” said SBA Administrator Isabel Guzman. The new initiative will help more mission-driven climate lenders leverage the SBA federal loan guarantee programs to fund the clean energy transition, she added.
