The Small Business Administration (SBA) is expanding its lending efforts through the Green Lender Initiative, targeting the Community Advantage program. The maximum loan size will increase to $500,000, up from $350,000, and lenders can apply to increase their loan limits to $1 million or $2 million for climate projects.
SBA Administrator Isabel Guzman emphasized the importance of involving small businesses in reducing U.S. emissions. The initiative aims to align private capital with investments in America, utilizing federal loan guarantee programs for climate-related funding.
Businesses can access the Environmental Protection Agency’s $27 billion Greenhouse Gas Reduction Fund, authorized by the Inflation Reduction Act. This supports climate-friendly projects, including residential and commercial energy efficiency.
Under the Biden administration, the SBA has enhanced its loan programs and small-business services, including the 7(a) Working Capital Pilot Program, which offers flexibility and a scaled fee structure. The 504 loan program’s maximum loan amounts for energy projects have also increased.
Other improvements include a better mobile interface for the Lender Match tool, increased surety bond guarantees, and the revamped Empower to Grow program for personalized training and consultation.
Despite the SBA awarding a record $169.2 billion in contracts to small businesses in fiscal 2022, the number of small-business contractors has declined, with fewer businesses receiving a larger share of federal contract dollars.
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