SBA 504 Green Public Policy Goals
Goal 1: Reduction of existing energy consumption by at least 10%
(*Up to $5.5 MM maximum debenture)
Goal 2: Generate 15% renewable energy on-site
(*Up to $5.5 MM maximum debenture)
Goal 3: Documented use of sustainable design practices
(**Up to $5.0 MM maximum debenture)
| ELIGIBILITY OPTIONS |
| |
GOAL 1
10% Energy Reduction
(*Up to $5.5 MM maximum debenture)
|
GOAL 2
15% Renewable Production
(*Up to $5.5 MM maximum debenture)
|
GOAL 3
Sustainable Design (LEED) Certification
(**Up to $5.0 MM maximum debenture)
|
| Construction/Acquisition of REPLACEMENT Facility |
X
Must replace a facility in the same climatic zone and region as determined by the SBA, and use must remain unchanged from which to draw an energy use comparison.
|
X
The facility may generate a minimum of 10% of renewable (solar, wind, turbine, thermal) energy (of the total energy used) required to run the facility, as calculated by an energy audit study.
|
X
If NO COMPARISON is available that meets SBA guidelines, the facility may become LEED certified through design and upgrading to become eligible.
|
| Construction/Acquisition of an ADDITIONAL Facility |
NOT ELIGIBLE
|
X
The facility may generate a minimum of 10% of renewable (solar, wind, turbine, thermal) energy (of the total energy used) required to run the facility, as calculated by an energy audit study.
|
X
Become LEED certified through design and upgrading.
|
| RETROFIT of Currently Occupied/Leased Existing Facility |
X
Must save a minimum of 10% of the historical energy usage through the installation of special design and upgrades, and supported by an energy/ audit study.
|
X
The facility may generate a minimum of 10% of renewable (solar, wind, turbine, thermal) energy (of the total energy used) required to run the facility, as calculated by an energy audit study.
|
X
Become LEED certified through design and upgrading.
|
*Maximum debenture amount of $5.5 MM for Goal 1 and 2 is applicable to each project per SBA SOP 50 10 5 (F).
**Maximum debenture amount of $5.0 MM for Goal 3 is applicable to each small business concern (which includes any prior SBA loan guaranties, committed or outstanding, 7(a) or 504, to the applicant and its affiliates) per SBA SOP 50 10 5 (F).
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FAQs...
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Does the SBA energy program now specifically limit itself to currently owned facilities to retrofit and replacement facilities only? (eliminating expansion or additional facilities?)
Yes, for 10% energy reduction criteria (Goal 1), that is correct. Comparisons of a baseline facility (A) and future facility (B) for 10% reduction in energy use (per unit area) is only eligible as long as A and B are in a generally similar climate zones/regional vicinity (determined by SBA) with use remaining unchanged, or A is vacated and B is occupied by the borrower.
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Can I still show a 10% reduction in energy if I am expanding my business to a second facility?
No, under the newly revised SOP guidelines, expansion can only qualify for Goal 2 (10% renewable energy) and Goal 3 (Sustainable Design Practices (LEED) Certification).
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What is LEED (Leadership in Energy & Environment Design) certification?
LEED is a third party certification program and the nationally accepted benchmark for the design, construction and operation of high performance green buildings developed by the U.S. Green Building Council (www.usgbc.org/leed).
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Does LEED certification eliminate the need for a comparison, but still require a replacement facility?
Not necessarily. To qualify under Goals 2 and 3, a baseline comparison between Building A and Building B is not necessary. Only Building B which the borrower is purchasing needs to be LEED certified.
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Does LEED certification require an energy study?
Not necessarily; however, the US Green Building Council will require rigorous analysis and documentation for approval/certification in order to obtain LEED certification.
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How long and difficult is it to obtain LEED certification? Are there any risks involved?
LEED certification can be a lengthy process, from project inception to certification. It must be properly designed from the design state and sitting phase. In order to achieve the necessary number of points, the project must be located in a certain locale, near public transportation, constructed of reused building materials, lighting, sensors, environmentally friendly design, etc. The entire design process can take weeks, and registration, document submittal, approval and certification can take 2-3 months.
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How do I become LEED certified?
Certification is administered by the Green Building Certification Institute (GBCI) through a network of professional, thirdparty certification bodies.