Eligible Businesses:

• Organized as for-profit

• Existing businesses in business for at least two years as well as some start-up businesses

• Businesses must have a tangible net worth of $20 million or less (including affiliates) and their average net profit after tax cannot exceed $6.5 million (average last two years)

• Business owners must be U.S. citizens or resident aliens

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Ineligible Businesses:

• Non-profit businesses

• Businesses engaged in any illegal activity

• Businesses deriving more than one-third of gross annual revenue from legal gambling activities

• Businesses primarily engaged in the business of lending (banks, finance companies, investment companies, life insurance companies)

• Passive businesses owned by developers and landlords that do not actively use or occupy the assets acquired or improved with the loan proceeds

• Businesses principally engaged in teaching, instructing, counseling or indoctrinating religion or religious beliefs, whether in a religious or secular setting

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What are some of the Permitted Uses of 504 Loan Proceeds?

• Acquisition of land and building

• Acquisition of vacant land for construction of building

• Construction of building

• Renovation of building; addition to building

• Acquisition of heavy duty machinery and equipment

• Refinancing of qualified debt (with or without expansion)

• Associated soft costs: appraisal fees; environmental reports; closing costs; architects fees; permits; surveys; installation of machinery and equipment; points on interim loans; small amounts of furniture and fixtures; etc.