EL SEGUNDO, CA-Two California real estate projects have landed $7 million in financing from a new SBA loan program that doubles the allowable loan limit for borrowers who reduce energy consumption, according to locally based Partner Energy, which acted as an adviser to the borrowers. Tony Liou, president of Partner Energy, explains that the SBA has amended its 504 loan program so that borrowers who reduce energy consumption by at least 10% or generate renewable energy may qualify for an SBA loan of up to $4 million, double the current maximum allowable amount.

“Borrowers can now consider project sizes up to $10 million whereas in the past, project sizes were limited to $5 million,” Liou says. In both of the recently closed loans, the borrowers received significantly higher loan amounts as compared to the limits imposed for loans without an energy efficiency or renewable energy component, he adds.

In one of the two recent loans, Golden Fremont Inc., a specialty Asian grocery store chain based in the Northern California city of Fremont, received approximately $4 million under the SBA 504 energy efficiency loan program to build a new $9 million food market in Fremont. Golden Fremont received the financing after Partner Energy created an energy model to predict the new food market’s potential energy consumption. The new 30,600-square-foot store, which will be designed following California’s strict Title 24 energy efficiency requirements, was projected to utilize at least 10% less energy on a per-square-foot basis than a recently renovated food market currently occupied by the borrower.

The other Partner Energy client, Blaine Convention Services, obtained approximately $3 million under the new SBA energy efficiency loan program for the acquisition of a former metal plating factory in the Orange County city of Brea in a transaction valued at approximately $8 million. The 107,000-square-foot building will be used as a new headquarters and warehouse for Blaine. Partner demonstrated to the SBA that with existing energy saving features along and some modifications, the new building is projected to be at least 10% more efficient than the space currently occupied by BCS.

In light of the difficulty of finding real estate financing of any kind, Liou points out, the new SBA energy efficiency loan program “encourages real estate lending by extending credit for qualified borrowers” and at the same time “promotes energy efficiency and renewable energy projects” at a time when energy efficiency and sustainability are of growing importance in the real estate industry.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.