SBA rules · SOP 50 10 8.1

Can an SBA loan finance EV charging stations?

SBA loans cannot finance EV-charging stations operated on a passive basis, and the SOP does not settle whether an active business can finance EV chargers as equipment or under 504 Energy Public Policy Goals.

Quoted from SBA SOP 50 10 8.1Every quote checked word for word

In detail

Passive business exclusion: Under core eligibility rules, EV-charging stations and businesses structured as a stand-alone asset operated on a passive basis are not eligible.
Two readings of the text: The phrasing can be read as barring only EV-charging stations that are structured and operated on a passive basis, or as barring stand-alone EV stations entirely; the SOP does not resolve this ambiguity, so the lender or SBA would have to confirm.
Machinery, equipment, and site improvements: The SOP allows 7(a) and 504 proceeds to improve a site or acquire and install fixed assets and equipment for eligible operating businesses, but the SOP's rules never specifically mention EV charging equipment.
504 Energy Public Policy Goals: The SOP's rules do not address EV charging projects under the 504 Energy Public Policy Goals, which cover a 10% reduction in energy consumption, renewable energy sources generating more than 15% of energy used, or sustainable designs.

Reading the rules together

Active business equipment: While passive stand-alone stations are ineligible, general rules allow eligible operating companies to finance fixed assets, equipment, and site improvements. Reading these together suggests an active operating business installing EV chargers for its own customers or fleet might be eligible, but the SOP does not explicitly state this.
Greenhouse gas reduction: Under 504 Energy Public Policy Goals, SBA recognizes sustainable designs that reduce the use of greenhouse gas emitting fossil fuels. An applicant might seek to qualify an EV infrastructure project under this policy goal, but the SOP does not define whether EV charging qualifies.

The SOP does not say this in one place. Confirm it with your lender.

The source

What the SOP says

“EV-charging stations and businesses structured as a stand-alone asset operated on a passive basis are not eligible.

SOP 50 10 8.1, Chapter 1: Primary Applicant Eligibility Requirements > Passive Businesses 13 CFR § 120.110(c): (lines 406-418)✓ Verified

“Improve a site (e.g., grading, streets, parking lots, landscaping) including up to 5 percent for community improvements such as curbs and sidewalks;

SOP 50 10 8.1, Chapter 3: Uses of Proceeds > Eligible Uses of Proceeds (lines 763-772)✓ Verified

“Acquire (by purchase or lease) and install fixed assets (for a 504 loan, these assets must have a useful life of at least 10 years and be at a fixed location, although short-term financing for equipment, furniture, and furnishings may be permitted where essential to and a minor portion of the 504 Project);

SOP 50 10 8.1, Chapter 3: Uses of Proceeds > Eligible Uses of Proceeds (lines 763-772)✓ Verified

“Increased use of sustainable designs. Increased use of sustainable designs, 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.

SOP 50 10 8.1, Chapter 1: Eligibility through Submission of Application > The construction or acquisition of a facility: (lines 3065-3078)✓ Verified

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