How Big is Your Project?

Most growing businesses are adding staff as they expand and look for larger facilities.  

This is when an SBA 504 loan is the perfect choice for financing the new facility!

SBA 504 loan size is linked to job creation .  A small business owner must create and/or retain jobs OR meet a public policy or community development goal (see below) to qualify for an SBA 504 loan.   In general, an entrepreneur can borrow $65,000 in SBA 504 loan funding for each job created and/or retained within two years. 

(Above Photo - Jenny's Floral in Custer, SD.  SBA 504 loan provided by Black Hills Community Econ. Development, Inc., Rapid City, SD)

There is no limit to the total project cost, however, a CDC can lend you up to 40% of the project cost with a dollar cap of $1,500,000 depending on the type of project. CDCs can exceed $1,500,000 and go as high as $2,000,000 of  SBA 504 financing for public policy or community development projects* and up to $4,000,000 for eligible manufacturing projects and for projects that incorporate energy saving technologies for sustainable design.

The CDC can lend you up to 40% of the project cost with a dollar cap of $1,500,000. CDCs can exceed $1,500,000 and go up to $2,000,000 of SBA 504 financing under the following conditions: 

Public Policy Goals:

• Revitalize a business district of a community with a written revitalization or development plan
• Expand exports
• Expand minority business development (owned 51% or more by minority business person)
• Aiding rural development
• Change necessitated by federal budget cutbacks
• Change required by mandated standard re health, safety, environment
• Increase productivity & competitiveness (retooling, robotics, or modernization)
• Expand woman-owned business development
• Expand veteran-owned business development
• Incorporate energy saving technologies for sustainable design

Community Development Goals:

• Help to improve, diversify or stabilize the economy of the locality
• Stimulate other business development in the community
• Bring new income into the community
• Assist manufacturing firms
• Assist businesses in a labor surplus area

Financing is available for up to $4,000,000 for:

• Eligible manufacturing projects
• Projects that generate renewable energy like solar, wind or geothermal
• Small businesses wishing to purchase, construct or retro-fit facilities incorporating energy saving technologies that result in a 10% decrease in energy consumption.

Franchises Work Too!

The SBA 504 loan program can be an excellent financing option for franchisees.   When evaluating a franchise opportunity, look for one listed with the FRANCHISE REGISTRY.  If the franchise system is eligible for this program, you will receive expedited loan processing through the SBA.