The SBA 504 Loan Program provides long-term fixed-rate financing to small businesses for construction, purchase or renovation of facilities, or to acquire machinery and equipment. The 504 loan program is not intended to be a general business loan or operating line of credit. The proceeds cannot be used for working capital, inventory purchase, consolidating or repaying creditors.

Profile Of A Qualified 504 Loan Program Borrower

The SBA 504 Loan Program is designed for small businesses that are:

• A for profit business, organized as a Corporation, Sole Proprietorship, Partnership, Limited Liability Corporation (LLC), etc.
• Located within the United States.  
• Tangible net worth of less than $15 million.
• Two-year average after tax profit of less than $5 million.

Uses Of 504 Loan Program Funds

The 504 Loan Program provides small businesses funding for the purchase of commercial real estate, equipment and improvements with low down payments and fixed-rate financing, while preserving working capital to grow the business.

• Purchase of land and new building construction; borrower must occupy at least 60% of the new building.
• Purchase of land and existing building, including building renovations and improvements. Borrower must occupy at least 51% of the building purchased.
• Renovations and improvements to building currently owned.
• Purchase of machinery and equipment with useful life greater than 10 years.
• 504 Loans range from $25,000 to $5 million (or $5.5 million for Green Energy projects or manufacturing).

Contact us to determine if your business qualifies.