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SBA 504 Energy Loan

The US Small Business Administration (SBA) created the 504 loan program to help qualifying small businesses attain affordable financing for major fixed assets and promote public policy goals. An SBA504 loan has three components:

  • Direct commercial loan from private lender covering 50% of required financing (secured by senior lien)
  • Loan from CDC covering 40% of required financing (secured by junior lien and backed by 100% SBA guaranteed debenture)
  • Contribution from business covering at least 10% of required financing

SBA loans generally require a business to commit to specified job creation targets and debentures are limited to $5 million. However, the SBA allows an additional debenture up to $5.5 million without the job creation targets for businesses that reduce energy consumption by 10% or generate renewable energy.

Go to for additional project requirements and up to date information about the provision.

Our team of licensed Professional Engineers can evaluate your project for compliance with the energy savings and/or renewable energy provision of the SBA 504 loan program.