The Small Business Administration removed its cap on 504 lending for clean-energy projects on May 30, 2024. Previously, a small business financing an “energy public policy project” could receive at most three 504 loans of $5.5 million each, for a combined ceiling of $16.5 million. Under the change, borrowers may obtain as many 504 loans of up to $5.5 million as they otherwise qualify for. The SBA said the eligible project class includes energy-consumption reductions, such as retrofits, and renewable-energy work, such as adding solar. [story-s1]
The announcement came alongside a White House Climate Capital Guidebook mapping federal financing programs available to climate-related small businesses and investors. The SBA also pointed to its Investing in America Small Business Hub, which offers technical assistance on accessing grants, loans and market opportunities tied to federal climate investments. The practical shift is therefore twofold: the per-loan ceiling remains, but the program no longer imposes the previous three-loan aggregate limit for eligible energy public-policy projects. [story-s1]
The agency framed the adjustment as a way to improve access to capital for small businesses adopting sustainable practices and to support investment in climate technology. The announcement does not promise that applicants will receive multiple loans: each borrower remains subject to ordinary qualification requirements, and each loan remains capped at $5.5 million. SBA presented the change as one element of a wider federal clean-energy financing effort, rather than a standalone grant or automatic subsidy. [story-s1]
Source documents
- Biden-Harris Administration Announces New Actions and Resources to Advance Clean Energy Economyhttps://www.sba.gov/article/2024/05/30/biden-harris-administration-announces-new-actions-resources-advanceclean-energy-economy