New clean energy initiative announced for small businesses

A new Green Lender Initiative to enroll additional climate lenders in federal loan programs has been announced by the U.S. Small Business Administration (SBA). 

SBA Administrator Isabel Casillas Guzman said the initiative will advance clean energy transition across the U.S. and employ SBA loan guarantees to attract additional private capital in support of clean energy investments spurred by President Biden‘s Inflation Reduction Act.

“The Biden-Harris Administration‘s transformative Invest in America agenda is powering our economy’s transition to a clean energy future, and that includes supporting our small businesses as they do their part to help America meet the president’s ambitious and necessary climate goals,” Guzman said in a statement. “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.

“The SBA’s new Green Lender Initiative aligns private capital with investments in America so that more mission-driven climate lenders can leverage the SBA federal loan guarantee programs to fund the small business clean energy transition,” added Guzman.

Guzman also announced that the SBA will expand Community Advantage (CA), the mission-driven component of the 7(a) Loan Program, by increasing the maximum loan amount and allowable geographic areas for CA lending, with flexibility for climate-focused projects.

Environmental Protection Agency (EPA) Administrator Michael Regan said President Biden’s Investing in America agenda is delivering transformational investments in climate and clean technologies.

“We are thrilled that the climate lenders and other entities that will be leading much of this work on the ground will have access to a new resource from SBA to assist them,” said Regan. “The Green Lending Initiative will help advance EPA’s and SBA’s shared goals of ensuring that communities and small businesses have access to the capital they need to support and benefit from a cleaner and more sustainable economy.”

According to a release, the Green Lender Initiative will “leverage SBA’s loan guarantees, secondary market, and other services to scale lending to Main Street small businesses working to decarbonize and lower energy costs for American homes and businesses.”

“Under President Biden’s leadership, we are helping small businesses reduce their energy costs and emissions while empowering them to participate in the booming clean energy economy,” National Climate Advisor Ali Zaidi said. “SBA’s innovative Green Lender Initiative will support climate lending for small businesses – which are the backbone of the American economy – and incentivize more small business ventures to contribute to decarbonizing our economy and lowering energy costs for American families.”