SBA 504 LOAN
The SBA’s 504 Loan Program is designed to help businesses finance the purchase of major fixed assets, such as land, buildings and/or equipment through longterm, fixed-rate financing.
SBA 504 applicants must:
Applicant operates as a for profit company
Applicant must occupy at least 51% of building to be purchased (or 60% of new construction)
Operate in the United States
Have a tangible net worth <$15 million and an average net income <$5 million after taxes for the preceding two years.
Not be engaged in speculation or investment in rental real estate
Present a feasible business plan
HOW THE SBA 504 LOAN WORKS
USING THE SBA 504 LOAN
SBA 504 LOANS CAN BE USED FOR:
Purchasing land, including existing buildings
Constructing, modernizing, renovating or converting facilities
Making improvements to property
Purchasing long-term machinery and equipment
SBA 504 LOANS CANNOT BE USED FOR:
Working capital or inventory
Consolidating or refinancing debt
Speculation or investment in real estate