BOMA-Backed Bipartisan Bill Would Nearly Double Energy Efficiency Loan Cap
The Small Business Energy Loan Enhancement Act—bipartisan legislation introduced in the U.S. House of Representatives on April 24—would almost double the federal loan amount available for energy efficiency investments.
Energy costs are a major expense for commercial buildings, which account for nearly 40% of all energy consumption in the U.S. Many building owners and managers want their buildings to consume less energy, but smaller businesses may not have the financial resources to pay for major renovations or retrofit projects.
The Small Business Administration (SBA) currently allows small business owners to borrow up to $5.5 million to finance energy-efficient upgrades. The Small Business Energy Loan Enhancement Act would nearly double that amount by expanding the cap to $10 million.
Rep. Jason Crow (D-Colo.-06), and Rep. Don Bacon (R-Neb.-02) introduced the bill. It was endorsed by BOMA International.
“The Small Business Energy Loan Enhancement Act will make a significant difference across the country, allowing properties to make the necessary investments to reduce energy consumption and bring down energy costs,” said Manuel Moreno, Chair and Chief Elected Officer of the Building Owners and Managers Association (BOMA) International. “BOMA International is proud to support this bipartisan legislation, and we commend Representatives Crow and Bacon for their leadership on this issue.”
Building owners can also still take advantage of the Section 179D tax deduction, which incentivizes the use of energy-efficient lighting, HVAC/hot water, and building envelope products. Expanded under the Inflation Reduction Act, this deduction applies to both new construction and retrofit projects.
