The Small Business Administration expands clean energy loan program

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The Small Business Administration is looking to attract lenders to finance small businesses' clean energy projects.

Find Insider Deals for items perfect around the house and on the goFILE - Brian Hoeppner, right, and Nicholas Hartnett, owner of Pure Power Solar, install a solar panel on the roof of a home in Frankfort, Ky., July 17, 2023. – 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.ranging from hyperlocal microlenders to nationally oriented financial institutions.

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.

Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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