2. SBA’s Energy and Pollution Control Loan Programs

3. Basic Eligibility Requirements Business must: Be operated for profit and not exceed SBA size standards. Not be engaged in lending, real-estate development, investments or speculation. Not be engaged in promotion of a specific religion. Not restrict patronage or be a gambling enterprise, or engage in prurient sexual materials or services. Meet the specific loan program eligibility requirement. Sound Presentation

4. SBA Participating Lenders Require: 1. Good character and credit history 2. Management expertise and commitment to succeed 3. Sufficient personal contribution to equity that supports the risk 4. Feasible, comprehensive plan with a proven or tested product or concept. 5. Sufficient collateral (all available collateral has been pledged) including Personal Guarantees. 6. Ability to repay loan from historical earnings or projected operating cash flow What Are Lenders Looking For?

5. Energy Conservation Loan Program Loans targeted towards small businesses engaged in engineering, manufacturing, distribution, marketing, installing, or servicing products that are designed to conserve our nation’s resources. Program can be used with other loan programs. Loans for traditional energy conservation in other industries are under the regular SBA 7(a) Loan Program.

6. Energy Conservation Loan Program Open SBA Handout… – What measures are eligible for financial assistance? – What can we use the money for? – Are there any special criteria?

7. Energy Loan Program Loan Amount: Up to $2 Million. Rate: Capped at 2 ¾% over Prime. Terms: Up to 25 years depending on use. SBA Fees: 2 to 3 ½ percent. Loan Proceeds: Acquire property, limited research and development costs (30% maximum), and working capital. Other: Requires comprehensive Business Plan to support and justify loan purpose.

8. Pollution Control Loan Program Loans for small businesses that plan to design, build, or service a new Pollution Control Facility. Loans for similar purposes to existing facilities are offered under SBA’s regular 7(a) Loan Program. Can be used with other loan programs when limits or credit enhancement is required. Loans for improvements, additions, or pollution control enhancements to an existing facilities are covered under SBA’s 7(a) Loan Program.