Representatives Crow, Bacon Introduce Small Business Energy Loan Enhancement Act

WASHINGTON — Congressman Jason Crow (D-CO-06) alongside Congressman Don Bacon (R-NE-02) introduced the bipartisan Small Business Energy Loan Enhancement Act, legislation to increase the maximum loan amount available to businesses for energy efficiency improvements.

The bill would increase the maximum loan amount for businesses investing in energy efficiency improvements through the existing Small Business Administration (SBA) 504 loan program, which offers long-term, fixed rate, low-cost financing for small businesses. To be eligible for the larger loan, small businesses must undertake projects that reduce their energy consumption by 10% or generate more than 15% of the energy used by the business. Funding can be used for renovation and retrofit projects as well as the purchase of major fixed assets such as land, equipment, or machinery.

"Colorado’s economy and environment are intrinsically linked," said Congressman Crow. “This bipartisan legislation will help Colorado’s small business owners protect the environment for their families and neighbors while also giving their businesses a boost.”

“Improving energy efficiency is a sustainable way for small businesses to reduce their carbon emissions,” said Congressman Bacon. “This is a cost-effective solution that makes funding available without burdensome regulations, and instead gives business an avenue to freely invest in lowering their energy consumption.”

Current law incentivizes energy efficiency investments by allowing businesses making such investments to qualify for a larger loan. The bill increases the loan amount for businesses making energy efficient upgrades – from $5.5 million to $10 million.

This legislation is supported by the US Chamber of Commerce; Building Owners and Managers Association (BOMA) International, National Association of Development Companies (NADCO); and B:Side Capital, a Denver-based small business lender for the Rocky Mountain Region.

“The U.S. Chamber of Commerce commends Congressmen Crow and Bacon for introducing the ‘Small Business Energy Loan Enhancement Act,’ which will facilitate the SBA’s ability to assist small businesses that seek to sustainably modernize aging infrastructure to improve energy efficiency and increase the deployment of lower emission energy resources.  These upgrades are not just good for business; they are good for the environment,” said Heath Knakmuhs, Vice President and Policy Counsel­ at the U.S. Chamber of Commerce’s Global Energy Institute.

“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.”

“NADCO supports the Business Energy Loan Enhancement Act, which ensures that capital intensive green energy real estate projects have access to financing that allows them to grow, plan for the future, and contribute meaningfully to their communities,” said Rhonda Pointon, President and CEO of NADCO. “We applaud Representatives Crow and Bacon for their efforts to expand access to capital for small businesses across the country.”

"B:Side Capital is committed to supporting small business and increasing access to capital. The Small Business Energy Loan Enhancement Act, introduced by Representative Jason Crow, does just that while encouraging sustainability for our communities," said Laurel Walk, Chief Lending Officer at B:Side Capital, a Denver-Based small business lender.

As a former member of the House Small Business Committee, Congressman Crow has been an ongoing supporter of cost-saving initiatives to uplift small business owners and the local economy. Last Congress, Congressman Crow introduced the bipartisan, Small Business Energy Loan Enhancement Act as well as SBA Cyber Awareness Act that was signed into law last congress. 

See full text of the bill here.