SEC. 3004. REDUCED 7(a) FEES AND HIGHER LOAN GUARAN-
TEES FOR PURCHASE OF ENERGY EFFICIENT 
TECHNOLOGIES. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended by adding at the end the following: 
‘‘(35) LOANS FOR ENERGY EFFICIENT TECH-
NOLOGIES.—The Administrator shall carry out a 
program for loans the proceeds of which are used to 
purchase energy efficient equipment or fixtures or to 
reduce the energy consumption of the borrower, in-
cluding, but not limited to, renewable fuels and en-
ergy products such as biodiesel and ethanol, by 10 
percent or more. For a loan made under this para-
graph, the following shall apply: 
‘‘(A) The loan shall include the participa-
tion by the Administration equal to 90 percent 
of the balance of the financing outstanding at 
the time of disbursement. 
‘‘(B) The fees on the loan under para-
graphs (18) and (23) shall be reduced by half.’’. 
SEC. 3005. SMALL BUSINESS SUSTAINABILITY INITIATIVE. 
Section 21 of the Small Business Act (15 U.S.C. 648) 
is amended by adding at the end the following: 
‘‘(n) SMALL
BUSINESS
SUSTAINABILITY
INITIA-
TIVE.— 
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‘‘(1) IN GENERAL.—A Small Business Develop-
ment Center may apply for an additional grant to 
carry out a small business sustainability initiative 
program. 
‘‘(2) ELEMENTS OF PROGRAM.—Under a pro-
gram under paragraph (1), the Center shall— 
‘‘(A) provide necessary support to smaller 
and medium-sized businesses to— 
‘‘(i) evaluate energy efficiency and 
green building opportunities; 
‘‘(ii) 
evaluate 
renewable 
energy 
sources such as the use of solar and small 
wind to supplement power consumption; 
‘‘(iii) secure financing to achieve en-
ergy efficiency or to construct green build-
ings; and 
‘‘(iv) empower management to imple-
ment energy efficiency projects; 
‘‘(B) assist entrepreneurs with clean tech-
nology development and technology commer-
cialization through— 
‘‘(i) technology assessment; 
‘‘(ii) intellectual property; 
‘‘(iii) Small Business Innovation Re-
search submissions; 
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‘‘(iv) strategic alliances; 
‘‘(v) business model development; and 
‘‘(vi) preparation for investors; and 
‘‘(C) help small business improve environ-
mental performance by shifting to less haz-
ardous materials and reducing waste and emis-
sions at the source, including by providing as-
sistance for businesses to adapt the materials 
they use, the processes they operate, and the 
products and services they produce. 
‘‘(3) MINIMUM
AMOUNT.—Each grant under 
this subsection shall be for at least $150,000. 
‘‘(4) MAXIMUM AMOUNT.—A grant under this 
subsection may not exceed $300,000. 
‘‘(5) AUTHORIZATION
OF
APPROPRIATIONS.— 
Subject to amounts approved in advance in appro-
priations Acts and separate from amounts approved 
to carry out section 21(a)(1), the Administrator may 
make grants or enter into cooperative agreements to 
carry out the provisions of this subsection.’’. 
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SEC. 3006. SMALL BUSINESS ADMINISTRATION TO EDU-
CATE AND PROMOTE ENERGY EFFICIENCY 
IDEAS TO SMALL BUSINESSES AND WORK 
WITH THE SMALL BUSINESS COMMUNITY TO 
MAKE SUCH INFORMATION WIDELY AVAIL-
ABLE. 
The Small Business Act is amended— 
(1) by redesignating section 37 as section 99; 
and 
(2) by inserting after section 36 (15 U.S.C. 
657f) the following: 
‘‘SEC. 37. PROGRAM TO PROVIDE EDUCATION ON ENERGY 
EFFICIENCY. 
‘‘(a) PROGRAM REQUIRED.—The Administrator shall 
develop and coordinate a Government-wide program, 
building on the Energy Star for Small Business program, 
to assist small businesses in— 
‘‘(1) becoming more energy efficient; 
‘‘(2) understanding the cost savings from im-
proved energy efficiency; and 
‘‘(3) identifying financing options for energy ef-
ficiency upgrades. 
‘‘(b) CONSULTATION AND COOPERATION.—The pro-
gram required by subsection (a) shall be developed and 
coordinated— 
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‘‘(1) in consultation with the Secretary of En-
ergy and the Administrator of the Environmental 
Protection Agency; and 
‘‘(2) in cooperation with any entities the Ad-
ministrator considers appropriate, such as industry 
trade associations, industry members, and energy ef-
ficiency organizations. 
‘‘(c) AVAILABILITY OF INFORMATION.—The Admin-
istrator shall make available the information and materials 
developed under the program required by subsection (a) 
to— 
‘‘(1) small businesses; and 
‘‘(2) other Federal programs for energy effi-
ciency, such as the Energy Star for Small Business 
program. 
‘‘(d) STRATEGY AND REPORT.— 
‘‘(1) STRATEGY
REQUIRED.—The Adminis-
trator shall develop a strategy to educate, encourage, 
and assist small business to adopt energy efficient 
building fixtures and equipment. 
‘‘(2) REPORT.—Not later than December 31, 
2008, the Administrator shall submit to Congress a 
report containing a plan to implement the strat-
egy.’’. 
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SEC. 3007. ENERGY SAVING DEBENTURES. 
Section 303 of the Small Business Investment Act 
of 1958 (15 U.S.C. 683) is amended by adding at the end 
the following new subsection: 
‘‘(k) ENERGY SAVING DEBENTURES.— 
‘‘(1) IN GENERAL.—In addition to any other 
authority under this Act, a small business invest-
ment company licensed after September 30, 2007, 
shall have authority to issue Energy Saving deben-
tures. 
‘‘(2) ENERGY SAVING DEBENTURE DEFINED.— 
As used in this Act, the term ‘Energy Saving deben-
ture’ means a deferred interest debenture that— 
‘‘(A) is issued at a discount; 
‘‘(B) has a five-year maturity or a ten-year 
maturity; 
‘‘(C) requires no interest payment or an-
nual charge for the first five years; 
‘‘(D) is restricted to Energy Saving quali-
fied investments; and 
‘‘(E) is issued at no cost (as defined in 
section 502 of the Credit Reform Act of 1990) 
with respect to purchasing and guaranteeing 
the debenture. 
‘‘(3) ENERGY SAVING QUALIFIED INVESTMENT 
DEFINED.—As used in this Act, the term ‘Energy 
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Saving qualified investment’ means investment in a 
small business that is primarily engaged in research-
ing, manufacturing, developing, or providing prod-
ucts, goods, or services that reduce the use or con-
sumption of non-renewable energy resources.’’. 
SEC. 3008. INVESTMENTS IN ENERGY SAVING SMALL BUSI-
NESSES. 
(a) MAXIMUM LEVERAGE.—Paragraph (2) of sub-
section (b) of section 303 of the Small Business Invest-
ment Act of 1958 (15 U.S.C. 303(b)(2)) is amended by 
adding at the end the following new subparagraph: 
‘‘(D) INVESTMENTS
IN
ENERGY
SAVING 
SMALL
BUSINESSES.—In calculating the out-
standing leverage of a company for purposes of 
subparagraph (A), the Administrator shall not 
include the amount of the cost basis of any En-
ergy Saving qualified investment (as defined in 
subsection (k)) made after September 30, 2007, 
by a company licensed after September 30, 
2007, in a smaller enterprise, to the extent that 
the total of such amounts does not exceed 50 
percent of the company’s private capital, sub-
ject to such terms as the Administrator may 
impose to assure no cost (as defined in section 
502 of the Federal Credit Reform Act of 1990) 
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