As the summer temperatures keep rising, so does our energy consumption, which can make staying cool on the Gulf Coast a costly endeavor. Reducing your company's energy consumption is a surefire way to lower operational expenses without impacting quality or productivity.
Thanks to a great program from the SBA, business owners looking to purchase commercial real estate have more incentives than ever for going green. Community Business Finance's 504 Loan Program is an effective way for businesses to get financing with below market interest rates and a 10% down payment. Including energy-efficient upgrades into the project benefits the borrower, the economy, and the environment. The following are just five benefits of energy efficient facilities.
1. Finance Unlimited Projects
Under SBA regulations, a business is capped at $5 million in total 504 loan financing. However, by including methods of reducing energy consumption, this cap is raised to $5.5 million per project, with no limit on the number of projects that qualify. This means that business owners that have previously reached their SBA maximum can still qualify for additional loans. Under the green initiative, the usual job creation or job retention requirements do not apply. This means that businesses with fewer employees can qualify for financing, such as parking garages and self-storage companies. Learn how to qualify as a green energy project.
2. Enhance Your Bottom Line
Energy-efficient upgrades can dramatically reduce energy costs. It is possible to recoup the cost of the upgrades in just a few years depending on the amount of savings. Lower utility bills allow you to allocate more of your working capital for other uses or increasing your emergency reserves.
3. Improve the Economy
In addition to saving your business money, energy efficiency building improvements create jobs. According to a U.S. Green Building Council study conducted by Booz Allen Hamilton, during 2015 the U.S. green building sector supported over 2.3 million jobs. The study also projected that green buildings will support more than 3.3 million jobs by 2018.
4. Protect the Environment
When we reduce our energy consumption, we save precious natural resources and cut down on pollution. The United States uses 56% less energy today than if we didn't employ energy-efficient technologies and helps us keep more resources on the earth longer. Investments in energy efficiency could remove up to 1.1 gigatons of greenhouse gas emissions annually. That is equivalent to taking all U.S. cars and trucks off the road for one year.
5. Increase Your Resale Value
When your business is ready to sell the building, the money invested in green upgrades adds value to future buyers, which can lead to a greater return on your investment.
Including energy efficient design in your building construction or renovation has many advantages, and Community Business Finance can help your business save even more money through its 504 Loan Program.
Fill out a short online form to get started and a loan expert will contact you, or contact our offices directly.
Business Development Director
800-462-1017, ext. 203
713-457-1650, ext. 201