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 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 $5,000,000 depending on the type of project.
CDCs can exceed $5,000,000 and go as high as $5,500,000 of SBA 504 financing for eligible manufacturing projects and for projects that incorporate energy saving technologies for sustainable design.
Manufacturing and Energy Efficient Projects:
- Eligible manufacturing projects
- Projects Incorporating energy saving technologies for sustainable design
- 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.
The SBA 504 loan program is not a real estate investment tool.
It exists to help small businesses expand and create jobs to benefit their communities.