If you own a business, going green can enhance your corporate social responsibility and save a lot of money. After your appliances and equipment are energy efficient, you will have fewer variable and monthly costs. Going green is an investment that often requires financial assistance. Here are some of the loans that you can apply for if you want to go green.
Accion Energy Efficiency Green Loans – Accion is a nonprofit organization that is committed to assisting businesses when it comes to going green. The maximum amount of money that you can apply for depends on the state that you live in. For example, the maximum amount that you can apply for in New York is 35,000 USD whereas the maximum amount that you can apply for in Massachusetts is 50,000 USD. In order to be eligible for any type of green loan and use it as a resource, the equipment that you purchase has to be certified as energy efficient. You must also have a credit score that is 525 or higher.
Initiative Foundation Green Business Loans – the Green Business Loans provided by the Initiative Foundation is specifically meant for businesses that provide products and services that preserve the environment. Some of the industries that are eligible include recycling, waste transformation, emerging energy technology, and more. The minimum amount of money that you can apply for is 50,000 USD and the maximum amount is 250,000 USD.
Section 1703 Loan Program – the Section 1703 Loan Program is offered by the United States Department of Energy. It is meant to fund clean technologies such as solar, nuclear, alternative fuel vehicles, pollution control equipment, and more. In order to be eligible for the Section 1703 loan program, your business has to be located within the United States.
Green 504 Loans – There are a few things that you could do with a Green 504 Loan. The most common is to purchase or construct a building in order to make it use 10% less energy than what your business is currently using. The 10% reduction specifically refers to the amount of energy that you are consuming.
It does not have to do anything with the amount that you pay for your utility bills or making your bills go down by 10%. One of the ways that businesses succeed at reducing their energy consumption is to switch to LED lighting. There is also a temporary change in the program which allows businesses to use Green 504 Loans to refinance. Additional requirements include the business being for-profit and having an average net income that does not exceed 5 million USD.
Advanced Technology Vehicles Manufacturing Program – the Advanced Technology Vehicles Manufacturing Program is meant to support the development of ATVs. In order to be eligible for this loan program, your business has to be an automotive manufacturer and/or a manufacturer of qualifying components. Two of the companies that have taken advantage of the program include Ford Motor and Nissan.
Other financial resources:
Tax deductions – Another potential financial resource for green businesses is tax credits.
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