Combining 7(a) Loan and Green 504 Loan to Exceed $5m SBA Limit?

searcher profile

April 29, 2023

by a searcher from University of South Carolina in Indianapolis, IN, USA

I am in the process of purchasing a business using a 7(a) loan, which will bring me to the $5 million SBA limit. The seller wants to sell the real estate as well, so I am going to do a lease-to-buy option so I can buy the property 3-6 months after closing the deal.

Once I'm leasing the property, is it possible to purchase it using a Green 504 loan if I commit to lowering energy consumption or implementing renewable energy sources? I have heard this will let me to surpass the $5 million cap, but I haven't come across anyone who has actually done this.

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commentor profile
Reply by a lender
from California State University, Sacramento in Seattle, WA, USA
The Green Program for energy efficiency building improvements via 504 will give you access to another $5M sba limits for the real estate.
commentor profile
Reply by a lender
from University of Utah in Sandy, UT, USA
You need to do the 7a first and then refresh the dollars with the green program via a 504.
commentor profile
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