Small businesses halt developing green buildings for now

The small business sector is facing a message overload with the current economic and political situation, making it difficult for small businesses to make smart green decisions. Combine that with the fall in spending that the current recession is creating and you have a lot of troubled minds with not a lot of excess cash.

So how is the small business sector reacting to the economy and the political messages?

Surprisingly, a report done by Discover Small Business Watch SM has showed an increase in confidence by business owners in the economy, but the statistics still show a majority who fear it is only getting worse. The report claims that 60% (down 9% from February) of small business owners are concerned about the future of the economy and the recession. That is a staggering 3 out of 5 business owners who are most likely gearing up to just try and stay afloat.

With economic fear comes an intensified precaution to reduce spending and increase savings, if at all possible, and with intensified precaution comes a lack of investment. Each factor trickles down to the next until the economy tightens up like it has and investments become a secondary priority.

And so that is where small businesses stand. They lack the risk-taking ability to make decent sized investment that would ultimately transform their small business into an environmentally sustainable, proactive entity. In fact according to the same Discover Small Business Watch SM report, nearly 50% of small business owners plan to decrease spending on business development (or green buildings and projects) in the next six months.

Further research done by Wells Fargo and Gallup show that “one-third of small business owners said the country’s economic situation has affected their plans to become more environmentally friendly.” It seems a third of the owners will be putting off sustainability for a later time.

Perhaps, in the midst of all the clutter and mixed messages, some small businesses forgot that green has the potential to save money and the environment by developing green buildings and sticking to green practices.

Obama’s administration has made a special effort to put money back into the hands of small businesses through the 504 loan program. The program offers up to $4 million in loans that small businesses can use to invest in green buildings and facilities that ultimately have the opportunity to save significant amounts of cash in the long run.

Additionally, according to a KOAM TV report, there are other ways to get basically free money for green and energy efficiency programs. For example, in Pennsylvania, small firms can get up to $25,000 in grants if they plan to cut there energy bill by 20%.

The money for small businesses is out there, now it’s just a matter of convincing small businesses to invest for the long run to better their company and the environment.