Government Incentives for Going Green Government incentives and SBA loans can be used to finance “green” business improvements. The government has several programs in place to help small businesses be just as competitive as corporate giants in the race to adopt green, energy-efficient business practices. These incentives can reap many rewards, from financial benefits that will impact your bottom line to social benefits, such as making your “green” business a much more attractive place for skilled, younger workers to seek employment. Whether you are looking to enter the business of greening our planet or just want to make employees and customers happy, going green is smart for small business.
Small businesses that invest strategically can cut utility costs 10 to 30 percent without sacrificing service, quality, style or comfort – while making significant contributions to a cleaner environment. Many projects will require little expense. Savings small businesses make from adopting energy improvements, also include federal energy tax savings for the tax year of 2010.
For projects that do require capital, SBA loan-guaranty programs can help reduce some of the financial costs of the “going green” process. All of SBA’s 7(a) loan programs can be used by small businesses to fund green improvements. With a 50 percent SBA-backed guaranty, and an average loan of $35,000 with its maximum loan size of $350,000— the SBA Express Loan is an excellent loan program to help small businesses go green.
Small businesses can also take advantage of SBA’s Certified Development Company (504) loan program to make significant capital improvements including extensive plant/office renovations to increase energy efficiency overall. Small businesses operating vehicles for business purposes can use SBA funds to green their fleets.
SBA Loans Finance Energy-Efficient Business Improvements:
• Energy-efficient appliances
• Alternative fuel for vehicles
• Replacing transportation fleet with hybrid vehicles
• Purchase of improved-mileage vehicles
• Increased efficiency, HVAC, heat pumps, geothermal energy
• Energy-efficient doors, windows, skylights
• Increased insulation
• Wind and solar power
• Energy-efficient power and light bulbs
For additional information about SBA Loan Programs visit the SBA website.
Loans and Grants and Incentives for Energy Efficient Projects – You can find more information about environmental loans, grants and incentives, in an easy-to-read format, at the Business.Gov Website.