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Hotel SBA 504 Green Program

Unlimited SBA allocation of 5.5 million for green hotels


The major feature of the program is that with the Green 504, a hotelier can acquire or develop any number of hotels and obtain a 5.5 million SBA allocation every time. Additionally, the Loan to Cost or Loan to Value can be as high as 85% for a start up project rather than 80%. Considering that the 5.5 million is 35% of the project, this means that the total hotel purchase or development may be high an in the 20 million range.

The project starts with an energy engineer doing an assessment and analysis on the hotel. The energy requirements and the 10% efficiency by the SBA will translate into a specific energy to be provided by sources such as solar panels. The report will then be given to the vendors such as solar panel retailers to obtain a quote which in turn will be added to total project cost.




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