Financing for small business energy efficiency projects
The Small Business Financing (SBF) program is now accepting applications from interested finance companies, contractors, and project developers! The program is set for a limited launch offering products from a few select finance companies in April 2019. Full program launch will occur in August 2019.
The Small Business program will be available for:
- for-profit businesses
- nonprofit organizations
Like all the programs highlighted on GoGreen Financing, the Small Business Financing program is designed to encourage growth in private market lending and features a credit enhancement to help financing entities mitigate risk. The flexibility of this program gives the customer the option to combine financing with utility rebates and incentives and gives finance companies the option to collect repayments through the customers’ energy bills.
Participating finance companies
These companies have been enrolled in the SBF program and will be participating in the limited launch in April 2019.
The Small Business program will be available for businesses and nonprofit organizations that meet one of the following size requirements:
- 100 or fewer employees, or
- annual revenues of less than $15 million, or
- meet SBA small business size requirements+
- Annual revenue limits range from $750,000 to $37.5 million depending on industry
Finance companies and contractors who serve larger for-profit businesses and nonprofit organizations that do not meet the small business definition may be interested in the Nonresidential program.
At least 70% of the credit-enhanced financed amount must be Energy Savings Measures or demand response. Up to 30% of the credit-enhanced financed amount may fund nonenergy efficiency improvements. Additional nonenergy improvements may be financed, but that portion of the financing will not receive a credit enhancement. Financing for distributed generation (DG) improvements, like solar photovoltaic (PV), may be financed but will not be credit-enhanced.
Financial products supported
Products supported will include loans, leases, equipment financing agreements, service agreements and savings-based payment agreements up to $5 million.
The eligible property may be owned or leased. The eligible property must receive electric and/or gas service from any of the following investor-owned utilities:*
- Pacific Gas and Electric Company (PG&E®)
- San Diego Gas & Electric Company (SDG&E®)
- Southern California Edison (SCE)
- Southern California Gas Company (SoCalGas®)
Finance companies can give customers the option to repay:
- Direct to the finance company
- Through the utility bill utilizing on-bill repayment
- On-bill repayment feature will be added to the program in 2020
For more information
For more information on the Small Business program, please contact the following program administration representative: