A small federal agency takes a big step to boost climate projects

By Avery Ellfeldt | 07/24/2024 06:17 AM EDT

The Small Business Administration now guarantees loans of $2 million — up from $350,000 — for emissions-reducing projects.

Isabel Guzman speaks during an event at The Queen theater in Wilmington, Delaware.

Isabel Guzman speaks during an event at The Queen theater in Wilmington, Delaware. Susan Walsh/AP

A federal agency that boosts small businesses is making a major revision to help finance projects that reduce planet-warming emissions and improve energy efficiency.

The Small Business Administration said it will guarantee loans made by nonprofit lenders of up to $2 million for climate-related projects — an increase from the current $350,000 limit.

The “Green Lender Initiative” announced Monday aims to “fund the small business clean-energy transition,” SBA Administrator Isabel Casillas Guzman said in a statement. “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.”

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The higher guarantee limit, which applies to nonprofit lenders participating in SBA’s largest loan program, aims to enable lenders to finance larger and more expensive emissions-reducing projects such as retrofitting a manufacturing facility to be more efficient.

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