The Building Owners and Managers Association (BOMA) International has endorsed bipartisan legislation expanding the maximum allowable amount businesses may borrow through the U.S. Small Business Administration’s 504 Certified Development Company (504/CDC) loan program for energy-efficient investments and upgrades. The bill, introduced by U.S. Representatives Jason Crow (D-Colo.) and Don Bacon (R-Neb.), is titled the Small Business Energy Loan Enhancement Act.
The legislation would nearly double the loan amounts available to small businesses making energy investments through the Small Business Administration’s 504/CDC loan program, increasing the maximum amount from $5.5 million to $10 million. The program provides small businesses with long-term, fixed-rate, low-cost loans that can be used to finance renovation and retrofit projects, as well as the purchase of major fixed assets, such as land, equipment, and machinery. Among the small businesses that will benefit from this legislation are commercial properties seeking to increase operational efficiency through capital-intensive investments, particularly older building stock. The average age of a commercial building in the United States is more than 50 years old. To meet the rapidly evolving needs and expectations of today’s tenants, the commercial real estate industry faces a growing demand to operate more energy-efficient, technologically enhanced buildings.
“This legislation is a game changer for small businesses, including commercial properties, nearly doubling the funding available for critical investments that can deliver modern, smarter and more energy efficient buildings and move the needle on carbon reduction,” said BOMA International President and Chief Operating Officer Henry H. Chamberlain, APR, FASAE, CAE.
