SBA 504 Green Loan Program Explained: Two Pathways to Achieve Energy Efficiency

So the first one is the energy efficiency pathway, and effectively, we have to make recommendations that will show a 10% savings of energy on a per square foot basis. Now, the caveat here is that you have to be going from a property's existing facility to either a new facility that's replacing what you have right now, you could be renting a facility that you are now purchasing.

So it's a little bit more of a nuance or more of a niche type of product. If you're just coming in and buying a new building, or someone who's buying a new hotel, that's not going to work under the energy efficiency plan. The second pathway, which is the one that's more often used is the renewable pathway.And with this, on that pathway, you have to have 15% of the energy usage of the property generated by that renewable system. And as I mentioned, it's, you know, we only deal with solar. So if somebody wants to do something outside they're allowed to, it's just not very common, because especially, you know, you take a regular building, they're not going to have access to hydroelectric, geothermal might work in certain places, that's possible.I don't know if your neighbors want you putting up a big wind turbine, but putting solar panels is very accessible. The prices have really come down a lot over the past few years. So that's while the SOP allows for any renewable, when people go this pathway, they are generally adding they are going solar.