The Biden-Harris Administration has announced the launch of a new Green Lender Initiative aimed at enrolling additional climate lenders in the U.S. Small Business Administration’s (SBA) loan programs. The initiative, unveiled by SBA Administrator Isabel Casillas Guzman, seeks to leverage SBA loan guarantees to attract private capital for clean energy investments, aligning with President Biden's Inflation Reduction Act.
Administrator Guzman detailed plans to expand the Community Advantage (CA) component of the 7(a) Loan Program. This expansion will increase the maximum loan amount and extend allowable geographic areas for CA lending, with a particular focus on climate projects. Guzman made these announcements alongside U.S. Senator Ed Markey (D-MA) during a visit to Indigo Block, a low-income multifamily housing complex powered by solar panels installed by Boston-based small business Resonant Energy.
“The Biden-Harris Administration’s transformative Invest in America agenda is powering our economy’s transition to a clean energy future, and that includes supporting our small businesses as they do their part to help America meet the President’s ambitious and necessary climate goals,” said Administrator Guzman. “Small businesses and homes account for more than one-third of U.S. emissions, so it is vital that they are part of the solution.”
EPA Administrator Michael S. Regan emphasized the collaborative effort between agencies: “We are thrilled that the climate lenders and other entities that will be leading much of this work on the ground will have access to a new resource from SBA to assist them.”
Senator Markey highlighted the significance of this collaboration: “By teaming up with the Environmental Protection Agency and green energy lenders, SBA will leverage historic capital investments from the Inflation Reduction Act—including $20 billion in national climate bank funding—to support financing for clean energy projects and sustainable small businesses.”
White House National Economic Advisor Lael Brainard noted that "the Small Business Administration’s new Green Lender Initiative will expand access to climate capital for small businesses," while National Climate Advisor Ali Zaidi added that under President Biden's leadership, efforts are underway "to reduce their energy costs and emissions."
Katie Frost, Associate Administrator for SBA’s Office of Capital Access, expressed excitement about welcoming green banks into SBA lending programs.
Harold Pettigrew Jr., President and CEO of Opportunity Finance Network, commended SBA's initiative: "This green lending initiative – which increases maximum loan amounts and expands geographic service areas – will help mission-driven community lenders working to tackle the climate crisis reach more small businesses."
The initiative aims to scale lending through various programs including:
- The Microloan Program
- The 504 Loan Program
- The 7(a) Loan Program
These efforts align with broader goals set forth by the Inflation Reduction Act which aims at significant private sector investment in clean energy.
For more information on accessing SBA’s Green Lender opportunities or becoming an SBA lender, interested parties can visit www.sba.gov or contact local SBA District Offices.