SBA 504 - Green Loan
The SBA (Small Business Administration) 504 Loan program is specifically designed to help small businesses finance projects that incorporate energy efficiency or renewable energy solutions, including solar projects. It truly is a hidden “GREEN” gem within the world of commercial real estate financing.
We offer assistance with SBA 504 Green Loans to help you expand your business. Our team of dedicated consultants work to customize and tailor loan requirements to meet the individual needs of each small business customer. We also help with all necessary paperwork, from start to finish, making the process extremely smooth for small business owners.
Through our participation in the SBA 504 Green Loan program, we work with qualified small businesses to help them purchase real estate, construct new buildings and renovate existing properties. Qualified businesses must be able to justify their ability to reduce energy consumption by at least 10% or generate at least 10% in renewable energy by meeting LEED Certification standards. Typical examples include the use of energy reducing materials such as energy efficient windows, insulation, lighting and HVAC units or the use of renewable energy products like solar, wind, turbine or thermal.
Benefits of SBA 504 Green Loan are as follow:
– Financing available – up to $16.5 million per project
– Up to 90% financing of the total project costs, which translates to less money down by the borrower
– Obtain competitive long-term fixed rates (which are currently below 5% as of June 2019)
– Obtain longer amortizations of 10, 20 or 25 years, which aids in cash flow repayment
– Qualify for loan repayment based on projections
– Qualify for multiple SBA loans (over and above the $5 million cap required for other SBA loan programs)
– Invest in “GREEN” technologies
SBA 504 Green loans may be used to finance a multitude of industries. Here are a few of the industries we can use the SBA 504 loans for: Hotels, Gas Stations, Large Manufacturing Facilities, Day Cares, Assisted Living Facilities, Self Storage, Restaurants and Event Centers.
Solar Investment Tax Credit (ITC) - 2021
In order to incentivize investment in renewable energy sources such as solar energy, the United States government has initiated Investment tax credit as part of IRS Tax Code since 2005. A tax credit is a dollar-for-dollar reduction in the income taxes that a person or company would otherwise pay the federal government.
According to SEIA.org, solar investment tax credit has helped solar industry grow by more than 10000% since it was started in 2006. It was supposed to expire at the end of 2017, but Congress extended its expiration date. This federal tax credit enables solar energy installation in the United States to save 26% on the installation cost of their solar energy systems.
What is Solar Tax Equity Finance Fund?
Tax equity financing is a way for property owners and financial institutions to receive benefits of solar electricity production through tax benefits and other incentives that flow from renewable energy and energy efficiency projects. There are three parts to the Tax Equity Finance Fund.
- Program Developer – Developer is the company like Universal Solar System that identifies a project, evaluates the risk and brings the project to fruition.
- Solar Host – Solar host is someone that has solar install done on their property and enjoys the benefits and incentives for switching to solar energy.
- Program Participant – Tax equity participant finances the solar projects in exchange to them receive tax benefits and other incentives from renewable energy and energy efficiency projects.
Why choose us?
Solar investments are ideal for private and institutional investors who are seeking:
- Market Maker for Solar Tax Equity Finance Fund.
- A reduction of federal income tax
- Assurances of compliance and due diligence on every deal
- Quick and efficient closings
- Risk mitigation
Our ability to bring solar projects to fruition with unmatched financial returns to our clients is a testament to the strength of our team and our leadership.
USDA Rural Energy for America Program
This program is designed to help agricultural producers and rural small business make energy efficient improvements and reduce the demand for conventional energy. A multitude of improvements can help lower energy costs for entities that choose to use a renewable energy source, including solar. This not only helps rural development and save energy costs, but also helps America achieve energy independence. Another great feature about this program is that it guarantees loan financing and grant funding as well.
A 2014 Farm Bill governs this program and has specific criteria to qualify for this program. Universal Solar System offers assistance by working with you to find out if your business meets these criteria and requirements. Our team of dedicated consultants work with you and help you with all necessary paperwork, from start to finish, making the process extremely smooth for small business owners.
Through our knowledge and expertise, we work with qualified small businesses to help them purchase real estate, construct new buildings and renovate existing properties. Qualified businesses are agricultural producers with at least 50% of gross income coming from agricultural operations. Small businesses in eligible rural areas are also eligible for this program. Businesses must be in an area other than a city or town with a population of greater than 50,000 inhabitants and the urbanized area of that city or town.