Administrator Isabel Casillas Guzman, head of the U.S. Small Business Administration (SBA) and the voice in President Biden’s Cabinet for America’s more than 33 million small businesses, announced a new Green Lender Initiative to enroll additional climate lenders in SBA’s loan programs. The initiative will employ SBA loan guarantees to attract additional private capital in support of clean energy investments spurred by President Biden’s Inflation Reduction Act.
Administrator 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 particular flexibility for climate-focused projects. She announced the changes with U.S. Senator Ed Markey (D-MA) while visiting Indigo Block, a low-income, multifamily housing powered by new rooftop solar panels installed by Boston-based small business Resonant Energy.
“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,” said Administrator Guzman. “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.”
“President Biden’s Investing in America agenda is delivering transformational investments in climate and clean technologies,” said EPA Administrator Michael S. Regan. “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. 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.”