Contact: Bruce Beck (805) 777-7971; bruce@dbrpr.com

LOS ANGELES - Real estate owners who implement an energy reduction or renewable energy generation project may qualify for double the current maximum allowable amount of a real estate loan under a new program offered by the Small Business Association, according to a leading energy consultant.

"The SBA has amended its 504 loan program where borrowers who reduce energy consumption by 10 percent or generate renewable energy may qualify for a loan of up to $4 million, double the current maximum allowable amount," says Tony Liou, president of Los Angeles-based Partner Energy.

"The guidelines and intent of the SBA 504 program and its new energy public policy goals are promising. However, since the program is still fairly new, proper implementation is the key to the program's success."

The SBA 504 loan program was created to encourage small- to mid-sized business owners to acquire commercial property with a minimal equity requirement by providing them with long-term, fixed-rate financing.

The size of the SBA loan amount correlates directly to a borrower's ability to meet certain public policy and community development goals such as revitalizing or stimulating business in the community, helping to improve, diversify or stabilize the economy of a local business district, or expanding a minority, woman or veteran-owned business. The SBA has now included energy public policy goals that include increasing the use of sustainable design, reducing energy consumption and promoting renewable energy generation.

"There are a myriad of ways to decrease energy use and generate renewable energy, each with a different price tag, payback period, and environmental benefit," says Liou. "Businesses can identify projects that meet the new public policy goals and select the ones that are best suited for their business goals and capital constraints."

Project financing has been one of the greatest obstacles to the broader implementation of energy efficiency projects. With the new SBA 504 loan program, businesses have the opportunity and capital to implement energy efficiency projects that will save them money. Implementing the energy efficiency project not only qualifies borrowers for additional loan proceeds but also provides economic benefits as long as they own the property.

The loan program was designed for ease of compliance but once the project or projects have been selected, a professional energy engineer (PE) or certified energy manager (CEM) should be used to verify and document that the project(s) meet the requirements of the public policy as part of the loan approval process.

Partner Energy (www.ptrenergy.com), is an energy consulting services firm based in Los Angeles. The firm assists owners and users of real estate implement cost-effective energy efficiency measures and renewable energy generation projects that meet their capital investment return criteria and their energy conservation and greenhouse gas emission reduction goals.

Partner Energy works with building owners and users to increase asset values, lower ownership costs, and promote environmental stewardship by recommending and implementing fiscally responsible and sustainable energy efficiency measures that reduce energy usage and carbon emissions.

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