The Small Business Energy Loan Enhancement Act increases allowable cap on vital Small Business Administration loan program.
WASHINGTON, March 9, 2023 /PRNewswire-PRWeb/ -- 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.
However, commercial real estate companies often do not have capital for crucial and extensive retrofit and renovation projects, many of which exceed the current 504/CDC loan cap of $5.5 million. The Small Business Energy Loan Enhancement Act would put the necessary funding within reach.
"BOMA International is proud to endorse the Small Business Energy Loan Enhancement Act and applaud the leadership of Representatives Crow and Bacon to significantly expand access to funding through the Small Business Administration," said BOMA International President and Chief Operating Officer Henry H. Chamberlain, APR, FASAE, CAE. "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."
"The groundbreaking Small Business Energy Loan Enhancement Act will provide much-needed financial resources for commercial buildings to invest in vital renovations and retrofits that both increase operational efficiency and help the commercial real estate industry advance its sustainability objectives," added BOMA International Chair and Chief Elected Officer Randal Frobelius, BOMA Fellow, P. Eng, Founder and President, Equity ICI Real Estate Services, Inc. "BOMA International commends Representatives Crow and Bacon for their work to expand the funding available for property professionals to move forward with necessary investments that will modernize the built environment."
BOMA International boasts an extensive history as commercial real estate's leader at the intersection of business interests and environmental policies, and it continues to pave the way in developing strategies that proactively address pro-business considerations, such as high-performance building best practices, energy efficiency and carbon reduction. The Small Business Energy Loan Enhancement Act will allow the commercial real estate industry to make the upgrades necessary to address these key considerations. BOMA International looks forward to working with Representatives Crow and Bacon and members of the 117th Congress to advance this legislation.
About BOMA International
International Founded in 1907, the Building Owners and Managers Association (BOMA) International is a federation of U.S. local associations and global affiliates. The leading trade association for commercial real estate professionals for more than 100 years, it represents the owners, managers, service providers and other property professionals of all commercial building types, including office, industrial, medical, corporate and mixed-use. BOMA International is the partner individuals in the commercial real estate industry choose to maximize value for their careers, organizations and assets. Its mission is to advance a vibrant commercial real estate industry through advocacy, influence and knowledge. Learn more at http://www.boma.org.
Media Contact
Hakan Ozsancak, BOMA International, (202)326-6352, [email protected]
SOURCE BOMA International
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