On July 22, Administrator Guzman announced a new Green Lender Initiative intended to add additional “climate lenders” to SBA’s loan programs that will make SBA-guaranteed loans to provide additional capital to small businesses in “support of clean energy investments”. According to the press release issued in conjunction with the announcement, the new 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”. The initiative will include loans made through the 7(a), 504 and Microloan programs.
The press release indicates that SBA will be publishing a notice(s) in the Federal Register inviting applications for additional regular and Community Advantage (CA) Small Business Lending Company (SBLC) licenses, with consideration being given to “an applicant’s ability to fill market gaps in clean energy financing, in addition to market gaps in lending to underserved communities and underrepresented entrepreneurs”. The announcement does not provide details regarding the selection process or the number of new licenses it will approve in either category.
SBA also signaled that it intends to expand lending authority for the current CA SBLC lenders, including allowing an increase in the maximum individual loan size from $350,000 to $500,000 for active CA SBLCs, as determined by SBA. CA SBLCs also will be able to request an additional maximum individual loan size increase to $1 million for regular projects and to $2 million for climate projects, and to request expansion of the geographic areas in which they can make 7(a) loans. Details regarding these potential changes, and what actions CA SBLCs may need to take to request the additional authorities, will be provided by SBA at a later date.
Please monitor naggl.org for information regarding publication of the announced Federal Register Notice(s) and additional information regarding the other CA SBLC changes.
