Biden expands capital access for small, medium-sized climate businesses

The administration of US President Joe Biden is taking action to expand access to capital for small- and medium-sized climate businesses, the White House said Thursday.

The administration has released a new Climate Capital Guidebook, which gathers current federal funding opportunities that include grants, loans, loan guarantees and cooperative agreements for small- and medium-sized companies, start-ups and established businesses, that are focusing on clean energy technologies and other climate solutions.

The guidebook provides a simple and 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," it said in a statement.

While one program provides long-term fixed rate loans of up to $5.5 million from approved lenders to small businesses for certain energy and manufacturing projects to support capital expenditures, another program will provide $54 million for projects that support clean energy and transition to electric vehicles.

The Bipartisan Infrastructure Law and Inflation Reduction Act, which had the biggest climate action investment in US history, introduced grants, loans, tax incentives and other programs to accelerate clean energy deployment and breakthrough innovative technologies, according to the White House.

The US private sector has announced $866 billion in new investments in clean energy and manufacturing since Biden took office in January 2021, as he aims to cut greenhouse gas emissions in half by 2030 and reach net zero by 2050.

The administration also unveiled new steps Wednesday to increase the domestic nuclear industry and advance clean energy.

The US completed units 3 and 4 of the Vogtle nuclear power plant in the state of Georgia, which are the first new reactors built in the nation in more than 30 years, the White House said in a separate statement.

While the Energy Department has committed $12 billion in loan guarantees for the construction and technical expertise for the project, the Vogtle site has become the largest source of clean power in the US with four operating nuclear reactors, it added.