Given that financing is about as scarce in the marketplace today as leg room on a domestic flight, the Small Business Administration’s recent revision to its 504 Fixed Asset Financing Loan Program is a welcome bit of news. Through the revised program, borrowers can secure up to $4 million in financing for projects that reduce energy consumption by at least 10%.

New construction or renovations can qualify for up to $2 million in financing if they meet sustainable design or “green building” principles, many of which can be found in the U.S. Green Building Council’s LEED program.

Here’s a general outline of the energy saving changes from the SBA:

The Public Policy Goals for Energy Efficiency are described in the Small Business Investment Act, Section 501(d)(3) as (I), (J), and (K) below

E1 - (I) reduction of energy consumption by at least 10 percent

E2 - (J) increased use of sustainable design, including designs that reduce the use of greenhouse gas emitting fossil fuels, or low-impact design to produce buildings that reduce the use of non-renewable resources and minimize environmental impact, or

E3 - (K) plant, equipment and process upgrades of renewable energy sources such as the small-scale production of energy for individual buildings or communities consumption, commonly known as micropower, or renewable fuels producers including biodiesel and ethanol producers.

Projects meeting ANY of these can go to $2 Million without creating or retaining jobs, as with other Public Policy Goals, so long as the CDC portfolio average is $50,000 as required.

SBA also has two new categories of loans permitted by the Act, Section 502(2) A (iv) and (v) to reach $4 Million in 504 financing, titled by the Act as “Energy Efficiency Projects.” The Act allows 504 Loans up to:

E1 - (iv) $4 Million for each project that reduces the borrower’s energy consumption by at least 10 percent; and

E3 - (v) $4 Million for each project that generates renewable energy or renewable fuels, such as biodiesel or ethanol production.

Projects eligible for up to $4 Million under one of the above do not have to meet the job creation or retention requirement, so long as the CDC portfolio average is at least $50,000.

For questions about the new energy goals, contact Richard Jones at SBA at (916) 735-1782 or by e-mail at richard.jones@sba.gov.

U.S. Green Building Council (USGBC)

Building Owners and Managers Association (BOMA)

Green Building Certification Institute (GBCI)

The Building Owners and Managers Association (BOMA) International announced the launch of the BOMA 360 Performance Program, a groundbreaking new program designed to recognize commercial properties that demonstrate best practices in building operations and management. The BOMA 360 Performance Program is an online self-assessment that will evaluate properties on six major areas of building management. The program comes at a critical time, as building owners and managers are looking to differentiate themselves from competition in a tight market.

“The BOMA 360 Performance Program is a truly revolutionary program that will add value to commercial buildings at a crucial time,” commented BOMA International Chair and Chief Elected Officer Richard D. Purtell, portfolio manager, Grubb & Ellis Management Services Inc. “This program takes a holistic view of all aspects of excellence in building operations and management, making it unique to the marketplace today.”

The holistic nature of the BOMA 360 Performance Program means that every aspect of building performance is assessed. Scores are based on how buildings measure up to an extensive checklist of best practices, including emergency and disaster planning and recovery plans, energy management, financial management, equipment maintenance and education and training. Properties are evaluated in the following areas:

· Building operations and management

· Life safety/security/risk management

· Training and education

· Energy

· Environment/sustainability

· Tenant relations/community involvement.

“The BOMA 360 Performance Program allows our firm to showcase and distinguish our managed properties in the marketplace,” said BOMA International Vice Chair Ray H. Mackey, Jr., RPA, CPM, CCIM, chief operating officer and partner, Stream Realty Partners LP. “By focusing on all major aspects of building operations and management, BOMA 360 provides a multi-faceted benchmark comparing each building to the industry’s best operating practices. Recognition as a BOMA 360 Performance Building provides validation for management teams, confidence for building owners and peace of mind for building tenants.”

For more information or to apply for the BOMA 360 Performance Program.