How Small Businesses Can Benefit from the Greenhouse Gas Reduction Fund 

Jul 1, 2024

Small businesses can forge the future of climate action with capital from the Greenhouse Gas Reduction Fund (GGRF).  

GGRF is a program administered by the Environmental Protection Agency to fund projects in local communities to address climate change. The $27 billion allocated to the fund will be disbursed to capital providers so they can support these projects and help communities transition to clean technology. 

How Funding Through the GGRF Works 

GGRF is split into three programs: the National Clean Investment Fund (NCIF), the Clean Communities Investment Accelerator (CCIA), and Solar for All (SFA). Through these programs, 68 nonprofit organizations have already been selected for financial awards that they will distribute among their networks. These networks include business lenders and Community Development Financial Institutions (CDFIs) that serve small businesses, especially those in underserved communities.  

With the funds distributed from one of these nonprofit organizations, lenders and CDFIs can then finance climate action projects in their communities. According to the Opportunity Finance Network, to qualify for GGRF funding, a climate action project must avoid or reduce emissions, support communities with addressing climate change and climate equity, and meet other eligibility criteria.  

What This Means for Small Businesses 

A big part of climate action in communities involves helping local businesses go green. Fortunately, the funding that a lender or CDFI receives through GGRF can be used to help small businesses take this step. Other organizations will also receive funding to provide technical assistance to small businesses with factors such as hiring and training staff, predevelopment activities, and more.  

This means small businesses can benefit from GGRF funding in many ways. For example, they can: 

  • Reduce their emissions and make an impact in addressing climate change  
  • Create solutions to address climate change 
  • Enter the industry as new or existing contractors to bid on clean energy projects 

Through these efforts, small businesses can do right by their customers, their teams, and the planet. But they’ll need an influx of capital to get started. GGRF is the first step in enabling them to do so. 

Next Steps for Your Business to Benefit 

If you’re interested in applying for funding through this program, look for announcements from lenders or CDFIs that they plan to participate. The nonprofit organizations that received the initial awards are expected to roll out funds to their networks in the second half of 2024. Once a lender or CDFI announces their participation, keep up with their website and social media to learn how their program will work for funding small businesses.