Federal Financing through the Small Business Administration

504 Loan Program

The SBA 504 loan program provides long-term, fixed rate financing for expanding small and mid-sized businesses.  Most for-profit businesses are eligible to apply.  A 504 project includes a loan from a private lender financing 50 percent of the project costs, the SBA 504 financing up to 40 percent and the borrower contributing as little as 10% percent.

Bank
Eligible uses:

• Land and building acquisition
• Building construction or renovation
• Machinery and equipment purchases
• Related soft costs (e.g., title insurance, appraisals)


Eligible Businesses:       

• Be organized and operating as a for-profit business
• Tangible net worth less than $15 million, and
• Average net profit after tax of less than $5 million the last       two years
• Not have funds available from other sources

 

 

Limitations:

• Businesses can apply for up to $5 million or $5.5 million for eligible manufacturing projects and energy saving projects
• Tangible net worth less than $15 million, and average net profit after tax of less than $5 million the last two years
• Generally the business must create and/or retain one job for every $65,000 borrowed from the SBA 504 or the project must    meet a public policy goal.  It’s 100,000 per job for manufacturers
• Interest rates are competitive and typically below bank rates


 

Contact us to see how you qualify and to get started on your application today.

 

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