The SBA 504 Loan Program

Small Business Administration (SBA) 504 loans provide fixed-rate financing on long-term loans. Does your business have a net worth under $15 million and an average net income of under $5 million? Then, you may be eligible for up to $5.5 million in SBA-backed financing.

What Is the 504 Loan Program?

The 504 Loan Program provides long-term, fixed rate financing for major fixed assets that promote business growth and job creation.

504 loans are available through Certified Development Companies (CDCs), SBA's community-based partners who regulate nonprofits and promote economic development within their communities. CDCs are certified and regulated by SBA.

The maximum loan amount for a 504 loan is $5.5 million. For certain energy projects, the borrower can receive a 504 loan for up to $5.5 million per project, for up to three projects not to exceed $16.5 million total.

How do I use a 504 loan?

A 504 loan  can be used for a range of assets that promote business growth and job creation. These include the purchase or construction of:

·         Existing buildings or land

·         New facilities

·         Long-term machinery and equipment

Or the improvement or modernization of:

·         Land, streets, utilities, parking lots and landscaping

·         Existing facilities

A 504 loan  cannot  be used for:

·         Working capital or inventory

·         Consolidating, repaying or refinancing debt

·         Speculation or investment in rental real estate

-SBA