A 'green' loan initiative for small businesses

8/19/2011

Minnesota small businesses can help both themselves and the environment through participation in a new Community Reinvestment Fund USA (CRF) initiative.

CFR, based in Minneapolis, is a nonprofit organization dedicated to helping small businesses realize commercial funding. By seeking sources of capital and bringing it to community lenders, the fund helps small businesses nationwide with expansion and startup operations.

The organization recently announced an environmentally proactive project, the Green Loan for Businesses program. Funds from the initiative are meant to help small businesses apply "green" technology to their facilities, such as purchasing and installing energy-saving equipment and making "green" improvements to buildings. For example, a company may qualify for the program for installing new windows and insulation.

"Providing funding for energy financing and 'green-dollar' jobs strengthens Minnesota's small businesses and gives them the resources to operate in an eco-friendly manner," said Mike Rothman, Minnesota Department of Commerce commisioner.

In addition to the benefits to the local (and global) environment, small businesses may see a rise in property values and an improvement in their sustainability standards, which has become a powerful marketing tool for certain industries. Financing for the new program comes in part from the U.S. Department of Energy and the Minnesota Department of Commerce's use of American Recovery and Reinvestment Act funds.