Biden-Harris Administration Opens SBA Loan Programs to New Green Lenders to Help Small Businesses Meet Climate Goals
2024年7月23日 - 4:07AM
Today,
Administrator Isabel Casillas Guzman, head
of the
U.S. Small Business Administration
(SBA) and the voice in President Biden’s Cabinet for
America’s more than 33 million small businesses, announced a new
Green Lender Initiative to enroll additional climate lenders in
SBA’s loan programs. The initiative will employ SBA loan guarantees
to attract additional private capital in support of clean energy
investments spurred by President Biden’s Inflation Reduction Act.
Administrator Guzman also announced that the SBA will expand
Community Advantage (CA), the mission-driven component of the 7(a)
Loan Program, by increasing the maximum loan amount and allowable
geographic areas for CA lending, with particular flexibility for
climate-focused projects. She announced the changes with U.S.
Senator Ed Markey (D-MA) while visiting Indigo Block, a low-income,
multifamily housing powered by new rooftop solar panels installed
by Boston-based small business Resonant Energy.
“The Biden-Harris Administration’s transformative Invest in
America agenda is powering our economy’s transition to a clean
energy future, and that includes supporting our small businesses as
they do their part to help America meet the President’s ambitious
and necessary climate goals,” said Administrator Guzman.
“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.”
“President Biden’s Investing in America agenda is delivering
transformational investments in climate and clean technologies,”
said EPA Administrator Michael S. Regan. “We are thrilled
that the climate lenders and other entities that will be leading
much of this work on the ground will have access to a new resource
from SBA to assist them. The Green Lending Initiative will help
advance EPA’s and SBA’s shared goals of ensuring that communities
and small businesses have access to the capital they need to
support and benefit from a cleaner and more sustainable
economy.”
“Today’s announcement by the Small Business Administration is a
win for the clean energy economy and the climate. By teaming up
with the Environmental Protection Agency and green energy lenders,
SBA will leverage historic capital investments from the Inflation
Reduction Act— including the $20 billion in national climate bank
funding that I secured—to support financing for clean energy
projects and sustainable small businesses,” said Senator
Markey. “This will supercharge our energy transition in cities
and towns across the Commonwealth while creating good high-wage
clean jobs, putting small business owners in the driver’s
seat.”
“President Biden’s economic agenda has driven a small business
and clean energy boom in communities across the country,” said
White House National Economic Advisor Lael Brainard. “The Small
Business Administration’s new Green Lender Initiative will expand
access to climate capital for the small businesses that power
America’s economy, while lowering energy costs for Americans and
ensuring that all communities share in the benefits of the clean
energy future.”
“Under President Biden’s leadership, we are helping small
businesses reduce their energy costs and emissions while empowering
them to participate in the booming clean energy economy. SBA’s
innovative Green Lender Initiative will support climate lending for
small businesses – which are the backbone of the American economy –
and incentivize more small business ventures to contribute to
decarbonizing our economy and lowering energy costs for American
families,” said National Climate Advisor Ali
Zaidi.
“SBA loans have been assisting small businesses and the lenders
who support them for decades,” said 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.”
"OFN is excited to see SBA launch a program to help community
lenders leverage the historic funding of the Greenhouse Gas
Reduction Fund (GGRF) in innovative ways," said Harold
Pettigrew, Jr., President and CEO of Opportunity Finance
Network, an awardee of the Clean Communities Investment
Accelerator under GGRF. "This green lending initiative – which
increases maximum loan amounts and expands geographic service areas
– will help mission-driven community lenders working to tackle the
climate crisis reach more small businesses. We thank SBA for their
continued partnership and recognition of the role CDFIs play in the
transition to a green economy."
This initiative will leverage SBA’s loan guarantees, secondary
market, and other services to scale lending to Main Street small
businesses working to decarbonize and lower energy costs for
American homes and businesses. SBA loans offer competitive terms
and usually offer lower down payments, longer maturities, flexible
overhead requirements, and no collateral needed for some loans.
The Inflation Reduction Act has already unlocked historic levels
of private sector investment in clean energy and continues to
combat the climate crisis. Under Administrator Guzman, the SBA is
doubling down on ensuring that small businesses and community
lenders can participate in this growing sector of the economy. In
the coming months, hundreds of locally, regionally, and nationally
focused financial institutions will begin deploying billions in
public capital alongside billions in private investment as part of
Inflation Reduction Act programs like the Greenhouse Gas Reduction
Fund at EPA. These mission-driven lenders are uniquely positioned
to identify and carry out climate investments on an equitable
basis, ensuring that underserved communities can share in the
energy cost savings and productivity improvements of the clean
energy transition.
The SBA’s new Green Lender opportunities span from hyperlocal
microlenders to nationally oriented financial institutions.
Specifically, an organization may access SBA support via:
- The Microloan
Program, as a Microlender: The SBA makes funds available to
SBA microlenders, who provide small businesses with small,
short-term loans — up to $50,000 — for working capital and other
uses. The SBA accepts applications to become a microlender on a
rolling basis.
- The 504 Loan
Program, as a Certified Development Company (CDC):
The SBA oversees 208 CDCs, which are nonprofits focused on the
economic development of their communities that work with SBA and
private-sector lenders to provide small businesses with long-term,
fixed-rate financing for major fixed assets, such as land,
buildings, machinery, and equipment, up to $5.5 million. Clean
energy and energy efficiency investments are now eligible for
multiple 504 loans. The SBA accepts applications to become a CDC on
a rolling basis.
- The 7(a) Loan
Program, through a Community Advantage Small Business Lending
Company (CA SBLC) license: To date, the SBA has 142
enrolled CA SBLCs, which are mission-driven, non-depository lenders
supervised by SBA. In the coming weeks, the SBA will begin
accepting new applications for CA SBLCs and authorize them to make
larger loans of up to $500,000—or $2 million to finance
climate-related projects. Information on applying for a CA SBLC
license will be available shortly in the Federal Register.
- The 7(a) Loan
Program, through a traditional Small Business Lending Company
(SBLC) license: SBA oversees 16 SBLCs, which are non-depository
institutions that make SBA loans nationwide up to $5 million.
Information on applying for an SBLC license will be available
shortly in the Federal Register. SBA will consider an applicant’s
ability to fill market gaps in clean energy financing, in addition
to market gaps in lending to underserved communities and
underrepresented entrepreneurs.
To learn more about accessing the SBA’s Green Lender
opportunities, see online information about becoming an SBA lender,
contact your local SBA District Office (find your district office
here).
In addition to strengthening the network of SBA lenders, the SBA
is expanding the loan size and geographic reach of its 7(a)
mission-driven lending through the Community Advantage Small
Business Lending Company (CA SBLC) license. Currently, CA SBLCs can
lend up to $350,000 and only in specifical geographic areas.
Administrator Guzman announced the expansion of the CA SBLC loan
max up to $500,000 for active lenders, and the opening of an
application process for lenders to expand up to $1,000,000
generally or $2,000,000 for climate projects. The SBA will also
open an application process for CA SBLCs to expand their geographic
reach.
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About the U.S. Small Business AdministrationThe U.S.
Small Business Administration helps power the American dream of
business ownership. As the only go-to resource and voice for small
businesses backed by the strength of the federal government, the
SBA empowers entrepreneurs and small business owners with the
resources and support they need to start, grow, expand their
businesses, or recover from a declared disaster. It delivers
services through an extensive network of SBA field offices and
partnerships with public and private organizations. To learn more,
visit www.sba.gov.
Christine Saah Nazer
U.S. Small Business Administration
202-756-0304
Christine.Saahnazer@sba.gov