SBA 504 Green Program for Senior Housing
The Small Business Administration’s (SBA) 504 Green program is an often underutilized but highly advantageous source of capital, particularly for businesses in the Senior Housing and Assisted Living sector. Created by the federal government, this specialized loan program is aimed at encouraging businesses to implement sustainable practices, thereby contributing to environmental protection. If you own or operate a Senior Housing facility and are interested in adopting eco-friendly initiatives, HavenCo Capital’s specialized team of SBA loan experts can provide personalized consultations to assess if your project would qualify for this unique financial resource.
Key Incentives for Senior Housing Facilities
For businesses in the Senior Housing industry, the SBA 504 Green loan program offers a trio of significant incentives designed to facilitate not just business growth, but also environmental sustainability. The program additionally aids in reducing your operating expenses by encouraging energy-efficient practices.
Increased Borrowing Limits: The SBA 504 Green program raises the aggregate loan amount a borrower can secure from $5 million to a substantial $16.5 million. This higher cap is particularly beneficial for large-scale green renovations or new construction projects within the Senior Housing sector.
Higher Per-Project Loan Caps: The loan amount designated for individual eco-friendly projects also sees an increase, rising from $5 million to $5.5 million. This allows for more comprehensive upgrades or construction of environmentally sustainable Senior Housing facilities.
Waiver of Job Creation Requirements: Unlike traditional SBA loans, the Green program waives the usual job creation mandates, making it a highly suitable option for Senior Housing businesses that may operate with a smaller workforce but still aim for impactful environmental contributions.
Qualification Criteria for Senior Housing Facilities
Businesses in the Senior Housing industry can qualify for the SBA 504 Green loan program through multiple avenues:
Energy-Efficient Upgrades: One way to qualify is by incorporating energy-efficient improvements that contribute to at least 15% of the building’s overall annual energy consumption. This is applicable whether you are constructing a new Senior Housing facility or upgrading an existing one. Qualifying improvements can include energy-efficient lighting, solar panel systems, advanced insulation techniques, and HVAC systems tailored for energy conservation.
Reduced Energy Consumption in Leased Properties: If your Senior Housing business is currently leasing a facility that you wish to buy, you can still qualify for the loan. This can be done by implementing energy efficiency measures that result in a 10% reduction in energy consumption. HavenCo Capital can even assist you in liaising with companies that offer LEED Certification assessments to ascertain if your project meets the eligibility criteria.
The SBA 504 Green loan program offers an invaluable opportunity for businesses in the Senior Housing sector to both obtain additional capital and contribute positively to environmental sustainability. To explore if this program is a good fit for your Senior Housing business, consult with a HavenCo Capital loan expert for tailored advice. For more in-depth information fill out the form below and a member of the team will reach back out to you.