Biden-Harris Administration Takes Action to Expand Access to Capital for Small- and Medium-Sized Climate Businesses
Through President Biden’s Investing in America agenda, the U.S. is making the largest public investment in climate action in history. The Bipartisan Infrastructure Law and Inflation Reduction Act, the largest-ever investment in climate action, introduced and expanded grants, loans, tax incentives, and other programs to accelerate clean energy deployment, invest in resilience, and seed breakthrough innovative technologies. Combined with unprecedented executive action, these investments are setting the United States on a path to achieve President Biden’s ambitious climate goals — including cutting greenhouse gas emissions in half by 2030 and reaching net zero by 2050. President Biden’s historic economic policies have spurred unprecedented levels of private investment into America’s clean energy economy. Since the start of the Biden-Harris Administration, the private sector has announced $866 billion in new investments in clean energy and manufacturing.
Creating economic opportunity for all American communities, entrepreneurs, and workers is central to President Biden’s economic and climate agenda. The Biden-Harris Administration is committed not only to catalyzing investment for climate and clean energy companies, but also to expanding access to that investment, ensuring all communities, including those historically left behind, benefit from these unprecedented resources.
Today, National Economic Advisor Lael Brainard, National Climate Advisor Ali Zaidi, and Small Business Administrator Isabel Casillas Guzman will host a Climate Capital Convening at the White House with investors, climate technology start-ups, small business owners, and entrepreneurs to discuss opportunities to mobilize capital for climate-focused businesses across America.
The Biden-Harris Administration will also announce new actions and resources to expand access to climate capital:
Releasing the new Climate Capital Guidebook:
The Biden-Harris Administration is releasing a new Climate Capital Guidebook to provide a simple, comprehensive map of capital programs across the federal government that are available to climate-related start-ups, small- and medium-sized businesses, and their investors. While larger, institutionally-backed climate companies may have the resources to identify and access federal funding opportunities, smaller enterprises may face greater challenges in navigating these federal programs.
Expanding financing to support small businesses’ adoption of clean energy:
Small businesses are a critical part of achieving net zero by 2050 and should have access to capital to deploy new clean energy and climate projects.
The Small Business Administration’s 504 Loan Program provides long-term, fixed rate loans of up to $5.5 million from Small Business Administration-approved lenders to small businesses for certain energy and manufacturing projects to support capital expenditures such as real estate or equipment. Previously, this program was capped at three loans per company, allowing each company to receive a total of $16.5 million in loans backed by the Small Business Administration. This month, the Small Business Administration is lifting its cap on the number of 504 loans that small businesses may receive for “energy public policy projects,” which include projects that reduce energy consumption such as retrofits and/or renewable energy projects such as adding solar. In lifting this cap, small businesses may now bundle multiple 504 loans to finance projects that leverage clean energy technologies to lower production costs, improve energy efficiency, and contribute to emissions reductions goals.