BBVA USA Launches Green Commercial Real Estate Loans for Small Businesses
BBVA USA, the US subsidiary of Spanish multinational bank BBVA, announced that it is launching a new sustainability-focused commercial real estate loan product for clients, designed to help small business owners with closing costs related to the purchase of commercial real estate, provided the property meets certain environmental sustainability standards.
According to BBVA, the new product supports the banks strategic plan, launched in January 2020, with aligning business efforts with economic, social and environmental sustainability as one of the key pillars. Earlier this year, the bank announced its new initiative, Pledge 2025, committing to mobilizing €100 billion in green finance, sustainable infrastructures, social entrepreneurship and financial inclusion through 2025.
BBVA USA Client Solutions Director of Sustainability Evan Matzen said”:
“This product is a starting point in the larger sustainability picture that we’re piecing together. This rollout is essentially a momentum-builder for BBVA. It signals a new way of doing business that not only provides solutions for our clients that will benefit them financially, but ones that will benefit their – and our – communities in the long run.”
BBVA stated that the new sustainability-focused loan allows small business owners to receive a discount of 1 percent, up to $10,000, of their loan amount toward closing costs if they buy or build an energy-efficient building, or renovate an existing building to improve its energy efficiency. To qualify for the loan to build or purchase an existing building, the property must obtain one of the following certifications: LEED green building program, National Green Building Standard, Green Globes, Living Building Challenge, or ENERGY STAR. For building renovations, the building must secure one of the previous certifications or achieve a verifiable 20 percent increase in efficiency from measures not required by building code, or can include adding an on-site renewable power system that supports at least 20 percent of the renovated building’s total electrical load.
BBVA USA Small- to Medium-Enterprises Network Executive Elizabeth Dobers said:
“This product underscores both the economic and environmental concepts of the bank’s strategic plan. It helps small business owners build their business portfolio with savings on closing costs as well as their green portfolio by acquiring energy-efficient property. We’ve long been champions of small businesses, the economic backbone of this country, and this is another way we’re continuing that mentality, while encouraging sustainable behavior.”