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Who is Eligible for a SBA 504 Loan?

In a word: Small Businesses!
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 $15 million or less (including affiliates) and their average net profit after tax cannot exceed $5.0 million (average last two years)

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

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

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.

What is a
SBA 504 Loan?
Why a 
SBA 504 Loan?
Who is eligible for
a SBA 504 Loan?
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SBA 504 Loan