The Borrower's Guide to Financing Solar Energy Systems: A ... - NREL

Energy Loans—SBA may make or guarantee loans to
assist a small business in designing, engineering,
manufacturing, distributing, marketing, installing,
or servicing energy devices or techniques designed
to conserve U.S. energy resources. Note that this program
is not designed for the end user (the business
that wants to acquire and use the energy measure
itself) but only for those who build, install, or service
energy measures. End users can finance energy measures
by obtaining a basic 7(a) loan.
Eligible energy conservation devices, measures, or
techniques include solar thermal equipment; photovoltaic
cells and related equipment; a product or service
that increases the energy efficiency of existing
equipment, methods of operation, or systems that use
fossil fuels, and that is on the Energy Conservation
Measures list of the Secretary of Energy; equipment
producing energy from wood, biological waste, grain,
or other biomass energy sources; equipment for
cogeneration of energy, direct heating, or production
of energy from industrial waste; hydroelectric power
equipment; wind energy conversion equipment; and
engineering, architectural, consulting, or other professional
services necessary or appropriate to accomplish
other conservation measures.
Loan proceeds may be used to acquire land for
imminent plant construction, buildings, machinery,
equipment, furniture, fixtures, facilities, supplies,
and material needed to accomplish any of the program
purposes, and for research and development of an
existing or new product or service, as well as for working
capital. In addition to regular credit evaluation
criteria, SBA weighs the greater risk associated with
energy projects. SBA considers such factors as quality
of the product or service, technical qualifications of
the applicant’s management, sales projections, and
financial status.
THE BORROWER’S GUIDE 35