As a result of Section 1201 of the Energy Independence and Security Act of 2007, the Small Business Administration (SBA) is clarifying that SBA Express loan proceeds may be used to finance the purchase of a renewable energy system, or to carry out an energy efficient project that involves the installation or upgrading of business equipment that results in a significant reduction in the borrower’s energy usage (Section 7(a)(31) of the Small Business Act).
As with other SBA Express loans, these loan proceeds must be used for purposes related to the operation of the business. Energy efficiency projects are especially of interest to the owner-operators in the trucking industry that are paying higher diesel fuel costs every week, with no end in sight. Through the SmartWay Transport Partnership, trucking companies can purchase an EPA upgrade kit that increases fuel efficiency and costs around $16,500. The EPA upgrade kit may be financed with an SBA Express Loan. The EPA estimates
that a typical long-haul driver of a tractor trailer can save $7,500 per year in fuel costs by installing the upgrade kit.
More information about the EPA Upgrade Kit can be found at the following websites:
Trucking companies would have to meet SBA size standards for their NAICS codes in order to qualify as a small business eligible for the loan program. Companies can check their NAICS codes at http://www.naics.com/search.htm Once the company knows its code, they can check the size standard in the table of small business standards by clicking here.
Most local companies should qualify as small businesses. The limitations are either annual revenues or number of employees.
www.sba.gov
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