Most Small Businesses Qualify

Eligible Uses of an SBA 504 Loan:

•    Acquisition of vacant land
•    Building construction
•    Acquisition of existing buildings
•    Major renovations and/or additions to exisiting building
•    Marine facility acquisition, including fishing vessels and commercial boats
•    Purchases of capital equipment, including heavy machinery
•    Associated costs such as title and insurance, legal fees, appraisals, environmental reports, architects fees, surveys, equipment installation, points on bridge loans, furniture and fixtures, etc.

Loan funds may NOT be used for working capital, mortgage broker fees, bridge loans during the construction period, business inventory, rolling stock (i.e. trucks) or refinancing of existing debt of the business.

Eligibility Criteria:

•    Legal entity - corporation, partnership, sole proprietor, limited liability company
•    Located in the United States
•    Net worth under $8.5 million and net profits under $3 million
•    Participation by another lender who finances up to 50% of project costs
•    Economic development goals must be achieved through the project financing
•    Owner-user of the project being financed must occupy at least 51% of the property for an existing building or 60% of a newly constructed building. Two or more unrelated small businesses can receive an SBA 504 loan if they combine to meet occupancy requirements.

A Small Business is Not Eligible if it is:

•    A not-for-profit (exception for sheltered workshops)
•    Engaged in lending; a passive holder of real estate and/or personal property; a life insurance company – however an insurance agency is eligible)
•    Located in a foreign country or owned by aliens who do not have legal permanent resident status
•    Has restriction on patronage
•    Is a government-owned entity (exception for Native American tribes)
•    Engaged in promoting religion
•    Consumer and marketing cooperatives (producer cooperatives are eligible)
•    Engaged in loan packaging
•    Owned by persons of poor character
•    Equity interest by lender, CDC or associates in applicant concern
•    Provides prurient sexual material
•    Has previously defaulted on a federal loan
•    Engaged in political or lobbying activities
•    Speculative businesses